Tuesday, January 27, 2009

Corp Tax Collection May Meet Estimate - Jan 27, 2009

The growth in corporate tax collection was likely to meet the budget estimate level of 26.1 per cent backed by a ''recovery'' in the last quarter of the current fiscal, an economic-think tank has said.

"Advance tax payment was down 22 per cent to Rs 42,000 crore in December 2008 over the year-ago level. However, corporate tax collection is likely to revive in the last quarter of the current fiscal", Centre for Monitoring India Economy (CMIE) has said in its report. However, the budget amount for corporate tax collection is Rs 2,26,361 crore for the financial year 2008-09.

CMIE said "In the year 2008-09, growth in corporate tax collection is expected to reach the budget growth of 21.6 per cent". According to CMIE, corporate tax collection registered an impressive growth, registering 38.2 per cent in the first half of the current fiscal. Despite a drop in revenue recorded in October and November 2008, the cumulative growth till November remained robust at the same level, the report said.

CMIE expects India Inc would enhance its profits, riding piggyback on the steep fall in crude oil prices in the international market and large payments to fertilizer companies towards fertiliser subsidies. In the last quarter of 2008-09, PAT is estimated to grow by an impressive 38 per cent, the report said.

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