By admin at 17 September, 2009, 10:43 pm
UltraTech Cement, an Aditya Birla Group company, has skipped advance tax payment in the second quarter of this fiscal, fuelling speculation that the earnings of cement companies could come under pressure due to possible oversupply. The company had paid Rs 190 crore in the same period last year. However, ACC paid higher advance tax of Rs 150 crore (Rs 42 crore). Hindalco Industries of the Aditya Birla Group paid Rs [...]UltraTech Cement, an Aditya Birla Group company, has skipped advance tax payment in the second quarter of this fiscal, fuelling speculation that the earnings of cement companies could come under pressure due to possible oversupply. The company had paid Rs 190 crore in the same period last year. However, ACC paid higher advance tax of Rs 150 crore (Rs 42 crore). Hindalco Industries of the Aditya Birla Group paid Rs 70 crore as advance tax, down from Rs 190 crore paid last year. Grasim Industries, on the other hand, coughed up more than thrice as much at Rs 250 crore (Rs 75 crore). Indian Oil emerged the second highest tax payer after SBI by paying Rs 1,100 crore, though the oil major did not pay advance tax in the quarter last year when the crude price crisis was at its peak. “It is a decision taken by individual companies which quarter they have to pay up the maximum tax liability. It also depends on the liquidity and capital expenditure, besides the future outlook,” analysts say. An analysis of advance tax paid by Mumbai-based companies shows a revenue gain of Rs 4,343 crore to the Centre.
The Indian economy seems to be on the mend with advance tax payments by banks, oil and auto companies showing a healthy rise. While the final figures are yet to be computed, initial trends suggest that advance tax collections in the second instalment will top the Rs 40,000 crore collected in September last year. In Mumbai, which accounts for 40 per cent of the country’s direct tax collections, advance tax receipts are expected to rise by 20 per cent. State Bank of India has paid Rs 1,838 crore as advance tax in the second tranche against Rs 1,560 crore a year ago. In the Tata group, Tata Steel’s advance tax outgo rose by nearly 74 per cent to Rs 400 crore in this instalment
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