Corporates Paying More Advance Tax Than Before

Numerous major corporates have given more advance tax in the fourth quarter of 2011 financial year, when compared to the previous year, thus, indicating a positivity in their financial performances. For information sake, advance tax payment is considered as a barometer of corporate performance as such payments are made according to the profit anticipations.


Among the Indian hotshots, both Reliance Industries and Tata Steel have paid about INR1,054 crore and INR 987 crore, respectively, as advance tax this quarter. In the fourth quarter of 2010 fiscal, both the companies had paid INR770 crore and INR513 crore, respectively. An engineering and construction major, L&T, has paid about INR300 crore as advance tax in the fourth quarter this year as against INR270 crore in the last year.
In the automotive sector, Bajaj Auto paid INR250 crore as compared to INR175 crore in the previous fiscal, while M&M shelled out INR307 crore as compared to INR226 crore in the previous year.

However in the FMCG sectors, two major players Hindustan Unilever Limited and Tata Motors have paid less. While HUL shelled out INR150 crore as against INR170 crore in the last year, Tata Motors paid only INR50 crore as compared to INR115 crore in the last fiscal.
 

As far as Banking sector is concerned, the private banks like HDFC Bank and ICICI Bank also paid higher advance tax this time. While HDFC Bank paid INR540 crore as compared to the last fiscal's INR300 crore, ICICI Bank paid INR475 crore as against INR350 crore .

Even the major Public sector life insurance company, LIC, shelled out INR931 crore as compared to INR864 crore in the previous fiscal. Hindalco paid INR160 crore as against INR110 crore in the previous year, while MRPL paid INR296 crore as against INR180 crore.