Tata largest tax-paying business house: Assocham

New Delhi, Aug 22: From salt to steel, the unstoppable Tata Group leads the chart as the largest tax-paying business houses, followed by the Mukesh Ambani-led Reliance Industries and Aditya Birla Group.

Tata group contributes about 10.3 per cent to the total corporate tax kitty of the government, amounting to Rs 15,130.83 crore in the financial year 2006-07, a study by industry body Assocham said.

The Assocham Eco Pulse (AEP) study said the Reliance Industries was the second highest taxpaying Group, carving up to Rs 2,372 crore with 1.6 per cent to government's collections.

Aditya Birla Group emerged as the third largest tax paying business house, with a 0.93 per cent share in the corporate tax revenue of the government. The consolidated amount of tax paid by all the companies in the Group was Rs 1,364.1 crore.

The study said tax the revenue contribution by the top 50 private Indian companies shelled out Rs 29,748 crore, with 20.3 per cent share in the corporate tax collection in the last fiscal and it is expected to grow further at the rate of 18 per cent in the current financial year.

Government collected Rs 1,46,497 crore by means of corporate tax imposed at the rate of 30 per cent. Presently, corporate tax is the largest contributor to the gross tax revenue of the government at 31 per cent.

Assocham President Venugopal Dhoot said,''Strong economic growth for four consecutive years, robust demand, huge investment in the domestic sector, acquisition activities at high radar have fuelled the growth performance of corporate India leading to expansion in their tax share.'' Among the Indian private companies paying corporate tax to government, Tata Steel emerged as the leader with a share of 5.75 per cent amounting to Rs 8,426.76 crore and recording a growth rate of 22 per cent in 2006-07, the study claimed.

Tata Tea is the second largest taxpayer accounting for two per cent share at Rs 3,037.54 crore, registering a 28 per cent growth rate in the period analysed.

Among the Aditya Birla Group of Industries, Hindalco was the highest payer of tax revenue to the Government as it contributed 0.86 per cent to total tax kitty of the Government. With a growth rate of 34 per cent from the previous fiscal, its contribution was Rs 1,284.14 crore and was sixth largest tax payer among the top 10 private companies.

Telecom major Bharti Airtel recorded 134 per cent growth in its profit tax payments ranking as the seventh largest taxpayer of Rs 1,262.33 crore, with a share of 0.86 per cent in total amount, the study added.

Larsen and Toubro, TCS and Wipro fall at eight, ninth and tenth positions respectively in the league of top 10 highest tax paying companies, the Assocham study further said.

UNI