Advance tax figure rose to 77% for the quarter 1 of 2011 compare to the figure of quarter 1 of 2010. Advance tax figure for thye quarter 1 of 2011 is 30399 crore compare to 17194 crore of one year ago.
CERTAINinterest rate-sensitive sectors like auto are reporting slowdown, but there does not seem to be a widespread deceleration across the sectors. Advance taxes paid by the corporate sector increased a whopping 76.8 per cent to`30,399 crore in the first quarter of this financial year, against `17,194 crore a year ago. The government kitty could swell further in next few days as some companies pay their dues even after the June 15 deadline.
“This indicates revenue buoyancy is robust and the profitability of companies for the first quarter has not been dented,” a finance ministry official told Business Standard .
The growth in advance tax this quarter is pretty high, considering a high base of 55.4 per cent a year ago. The country’s largest lender SBI, Reliance Industries, SAIL, LIC and Bhel lead the pack of top advance tax payers.
Advance tax collections are an indicator of financial health of companies and state of the economy. Based on their projected earnings, firms pay 15 per cent of their total advance tax in April-June. The huge growth in the first quarter may provide some comfort to the government at a time when global factors are posing a risk to the country’s economic growth and fiscal situation.
The finance ministry has indicated economic growth this year may be lower than 9 per cent projected in the Budget.
Source:- Business Standerd
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