Economic recovery is clearly visible as advance tax collections were up 13.10 per cent at Rs 49,502 crore (Rs 495.02 billion) in the second quarter against negative growth of nearly 6 per cent in the previous quarter.
However, 12 of the top 50 biggest tax payers among corporations paid less advance tax in the second quarter ended September 15, 2009, indicating that the upturn will take some time to spread to all sectors.
A finance ministry official exuded confidence that the third quarter advance collections will improve further as companies are supposed to do better in the coming festival season, even though drought would impact some of them.
According to finance ministry sources, advance mop up of corporate tax registered a 14.7 per cent growth at Rs 44,010 crore (Rs 440.10 billion) in the September quarter against a negative
growth of 3.7 per cent at Rs 20,728 crore (Rs 207.28 billion) in the first quarter.
Similarly, personal income tax advance collections recorded a 1.7 per cent growth in the second quarter at Rs 5,492 crore (Rs 54.92 billion) against a drastic negative growth of 44 per cent in the first quarter, the sources said.
While country's largest lender SBI was the biggest tax payer at Rs 1,832 crore (Rs 18.32 billion) in the second quarter, up by 17.44 per cent, ONGC and RIL were on the second and third slots.
However, ONGC, SAIL, ICICI Bank, Citibank, Ambuja Cements paid less advance tax in the second quarter on yearly basis as their profits came under pressure.
The Indian industry has been on an upswing as it grew by 8.2 per cent in June and 6.8 per cent in July this year, after coming under the impact of a deepening global financial crisis since the middle of September last year.
The tax figures showed that consumer durables, led by automobiles, have shown a strong recovery as also the software sector. Maruti paid 97.76 per cent higher tax at Rs 265 crore (Rs 2.65 billion) in the second quarter against a year ago, while Bajaj Auto paid around 90 per cent more tax at Rs 170 crore (Rs 1.70 billion).
Auto industry posted a robust over 24 per cent jump in August sales at 10,08,702 crore (Rs 10,087.02 billion).
While Infosys tax outgo was 100 per cent higher at Rs 300 crore (Rs 3 billion), Tata Consultancy Services paid 171.60 per cent higher tax at Rs 220 crore (Rs 2.20 billion)
The cement sector has also surged to leave its sluggish growth behind, while PSU banks continue to perform strongly.
ACC paid 257 per cent higher tax at Rs 150 crore (Rs 1.50 billion).
While SBI ranked as the highest corporate tax payer, PNB paid Rs 475 crore (Rs 4.70 billion), up 35.71 per cent. Bank of India paid 199 per cent higher tax at Rs 269 crore (Rs 2.69 billion).
The energy sector has rebounded, led by oil marketing companies as well as the power sector. BPCL paid Rs 312 crore (Rs 3.12 billion). The FMCG sector has also made significant strides, while healthcare and pharma continue to be strong. Hindustan Lever paid around 35 per cent higher tax at Rs 175 crore (Rs 1.75 billion).
However, the realty sector continues to be badly hit.
Metals led by steel remained down. SAIL paid Rs 13.48 per cent less tax at Rs 918 crore (Rs 9.18 billion).
