Friday, September 22, 2006

Advance tax payment of 8 Sensex firms up 400% in Q2

MUMBAI, SEPT 21: Commodity prices, along with interest rates, have been sources of pressure in the recent past. But that hardly seems to have affected India Inc in any way, if the recent advance tax payment figures of major Indian companies are any indication.

A total of eight companies that constitute nearly 20% of the benchmark Bombay Stock Exchange (BSE) Sensex have reported an average rise of more than 400% in their advance tax payment in September 2006, compared with the corresponding quarter of the last financial year. Sources said, while ACC has reported a massive rise of 2,400% in its advance tax payment at Rs 125 crore, Gujarat Ambuja Cements’ payment shot up by 500% at Rs 120 crore. Metal majors Tata Steel and Hindalco Industries have paid advance tax of Rs 450 crore (up 80%) and Rs 230 crore (up 70%), respectively, in September 2006. Other Sensex constituents, Grasim Industries, Bajaj Auto, L&T and Tata Motors, have also seen a rise in advance tax payment in a range of 14% to 94%.

Experts say the biggest rise has been seen in some of the old economy companies as they are also related to the infrastructure sector, on an upswing in the recent past.

The total advance tax payment of 12 companies (data available with FE), constitutes nearly 9% of the total countrywide payment, pegged at Rs 21,593 crore. Advance tax paid by corporates and individuals rose 32.6% by mid-September underscoring the economic buoyancy.
source:-Financial times


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