Banking and financial services companies the led corporate pack as advance tax payments for July –September grew by about 14 per cent, tax department sources said. Mortgage finance major HDFC paid about Rs. 400 crore as advance tax for the quarter, while the country’s largest bank State Bank of India (SBI) paid Rs. 1,924-crore.
Under law, every assessee is required to pay tax in advance if tax liability for the year is likely to exceed Rs. 5,000.
All companies are required to pay advance tax in four installments in each financial year. Higher advance tax collections mirrors growth in Indian Companies anticipated income as sales grow to meet higher demand.
The country’s industrial output grew by 13.8 per cent in July, buoyed by a 63 per cent growth in capital goods output.
Last week Finance minister Pranab Mukherjee termed industrial output growth as “extremely encouraging” and expects a full year industrial output growth of 12 to 13 per cent.
But some experts cautioned that the growth was not broad-based. “There are a large number of sectors that are employment-intensive but are hardly growing,” said Amit Mitra, secretary general of industry chamber Ficci.