New Delhi, Aug 22 (UNI) The government today said it has posted a 24.1 per cent growth in the collection of Corporate Advance Tax at Rs 21,368 crore during quarter ended June 2008, compared to a 27.9 per cent increase in the same period last year.
''The growth of 24.1 per cent in advance tax payments by the corporate taxpayers is quite healthy,'' an official statement from the Finance Ministry said.
Meanwhile, the growth in Corporate TDS is 60.5 per cent during the first quarter of the current fiscal at Rs 22,127 crore, against 43.1 per cent over the same period a year ago.
The marginal decline in the growth of advance tax payment is because of substantially higher contribution from TDS of the corporate taxpayers, the statement added.
Companies generally estimate their TDS outgo and reduce the advance tax liability accordingly. Combined growth rate of advance tax and TDS this year is 40.3 per cent as against 34.3 per cent last year.
Advance tax payments by top 10 firms were up by only seven per cent for the June quarter. For the top 100 firms, the advance tax receipts were up 17 per cent.
This is due to the reason that some of the prominent oil distribution companies have been badly hit by the spike in international crude prices.
However, the overall growth of advance tax payment of all the companies is about 24 per cent for the June quarter indicating that small and medium enterprises (SMEs) have in fact paid proportionately high advance tax, thereby belying any conclusion of slowdown in the economy based on advance tax payments.
UNI SBA MP BD2035