MNC banks pay lesser advance tax in Q3

Major global banks such as Standard Chartered, Barclays and HSBC have paid lesser amounts in advance tax in the third quarter of this fiscal compared to the year-ago period, while the domestic banks have paid higher amounts during the same period.

The largest global bank operating in the country, Standard Chartered Bank, has paid only Rs 400 crore (Rs 4 billion) in advance tax this quarter against Rs 431 crore (Rs 4.31 billion) in the same period last year.

However, its total advance tax payment till Q3 has risen to Rs 1,125 crore (Rs 11.25 billion) against Rs 1,083 crore (Rs 10.83 billion) last year, an Income Tax department source said.

Another leading foreign bank HSBC, however, has seen a sharp decline in its advance tax payment for the third quarter at just Rs 175 crore (Rs 1.75 billion) against Rs 400 crore (Rs 4 billion) in Q3 last fiscal. Its overall advance tax payments in the three quarters of this fiscal too dipped sharply to Rs 645 crore (Rs 6.45 billion) against Rs 1,025 crore (Rs 10.25 billion) in the same period last year, the source said.

Similarly, another overseas bank, Barclays paid lesser advance tax this fiscal as a whole as well as the third quarter.
Against Rs 60 crore (Rs 600 million) advance tax payment in Q3 last fiscal, it has shelled out only Rs 25 crore (Rs 250 million) in this Q3. There is a sharp decline in its overall tax payment in the three quarters of this fiscal also at Rs 120 crore (Rs 1.2 billion) against Rs 190 crore (Rs 1.9 billion) last year.

However, Citibank has paid the same amount in Q3 this fiscal (Rs 225 crore) as last year.  The banking major, has, however, paid less for the three quarters at Rs 645 crore (Rs 6.45 billion) compared to Rs 700 crore (Rs 7 billion) in the year-ago period.
However, Deutsche Bank and Bank of America have paid significantly higher amount in advance tax at Rs 160 crore (Rs 1.6 billion) and Rs 110 crore (Rs 1.1 billion), respectively this quarter.

They had paid Rs 80 crore (Rs 800 million) and Rs 70 crore (Rs 700 million), respectively, last year. The overall advance tax payment for the three-quarters for Deutsche Bank stands at Rs 350 crore (Rs 3.5 billion), up from the Rs 330 crore in the year-ago period.

Bank of America too has paid a significantly higher Rs 250 crore (Rs 2.5 billion) for the three quarters against Rs 170 crore (Rs 1.7 billion) in the last year, the IT source said.

Among domestic banks, the State Bank has paid Rs 1,795 crore (Rs 17.95 billion) in Q3 against Rs 1,700 crore (Rs 17 billion) in same quarter last fiscal while for the three quarters so far, it has shelled out Rs 4,701 crore (Rs 47.01 billion) as against Rs 3,923 crore (Rs 39.23 billion) last year.

Private sector Yes Bank, which paid just Rs 37 crore (Rs 370 million) in the year-ago period has shelled out Rs 90 crore (Rs 900 million) this time, taking its overall tax payment in the three quarters to Rs 175 crore against Rs 89 crore (Rs 890 million) last year.

Exim Bank also has shown an upward trend by paying Rs 155 crore (Rs 1.55 billion) in advance tax this quarter against Rs 65 crore (Rs 650 million) in the year-ago period.

The overall advance tax payment of the bank till this fiscal is Rs 175 crore (Rs 1.75 billion) as against Rs 155 crore (Rs 1.55 billion) in the year-ago period.