Tata’s largest tax paying business house: Assocham

Tata’s largest tax paying business house: Assocham
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First Published: Wed, Aug 22 2007. 02 54 PM IST
Updated: Wed, Aug 22 2007. 02 54 PM IST
New Delhi: Tata Group has emerged as the largest taxpayer contributing 10.3% to the total corporate tax kitty of the government, amounting to Rs15,130.83 crore in FY 2006-07 according to the Eco Pulse (AEP) study on “Tax revenue contribution by top 50 private Indian companies” carried out by Assocham.
Contributing factors were found to be strong economic growth for four consecutive years, robust demand, growing investment in domestic sector, heightened acquisition activities.
Findings
* 50 companies of India Inc. shelled out Rs29,748 crore, with 20.3% share in the corporate tax collection in the last fiscal and it is further expected to grow at 18% in current FY.
* Despite negative growth of 39% in tax cost, Reliance Industries (Mukesh Ambani Group) was second highest taxpaying Group, contributing up to Rs2,372 crore with 1.6% handed over to government collections.
* Aditya Birla Group was third largest tax paying business house after Reliance, with 0.93% share in corporate tax revenue of government. Consolidated amount of tax paid by all companies in the Group was Rs1,364.1 crore.
* Government collected Rs1,46,497 crore by means of corporate tax imposed at the rate of 30%. Presently corporate tax is the largest contributor to gross tax revenue of the government at 31%.
* Union Excise Duties, which till FY 2005-06 had the maximum share, has recorded a decline of 5% with a current share of 25%.
Tatas retain leadership position
Among the Indian private companies paying corporate tax to government, Tata Steel emerged as the leader with a share of 5.75% amounting to Rs 8,426.76 crore and recording a growth rate of 22% in 2006-07.
Tata Tea is the second largest taxpayer accounting for 2% share at Rs3,037.54 crore, registering 28% growth rate in the period analyzed.
ITC Limited stood as the third largest contributor of Rs1,472.84 crore accounting to 1% in corporate tax revenue, appending growth of 6% from last year.
Tata Motor grew at 12% contributing Rs1,364.32 crores, and was fourth largest taxpayer with 0.91% of input in the total tax revenue of Rs1,68,401 crore to the government corporate revenue for FY 2006-07.
While HDFC was the highest contributor among private banks, it emerged as fifth largest corporate taxpayer with Rs1341.93 crore for 0.87% share in the total corporate tax, confirming year on year growth of 21%.
Among the Aditya Birla Group of Industries, Hindalco was the highest payer of tax revenue to the Government as it contributed 0.86% to total tax kitty of the Government. With a growth rate of 34% from the previous fiscal, its contribution was Rs1,284.14 crore and was the sixth largest tax payer among the top 10 private companies.
Telecom major Bharti Airtel indicated 134% growth in its profit tax payments ranking as the seventh largest taxpayer of Rs1,262.33 crore, with a share of 0.86% in total amount.
L&T, TCS and Wipro fall at eight, ninth and tenth positions respectively in the league of top 10 highest tax paying companies.
L&T contributed Rs1,180.13 crore recording a growth of 15% while TCS contribution amounted Rs9,04.05 crore intensifying at the rate of 67% with a share of 0.80% and 0.61% respectively in the government’s tax collections.
Wipro contributed Rs765.2 crore with negative growth rate of 0.65% and with a share of 0.52% in the government’s total corporate tax collections.
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First Published: Wed, Aug 22 2007. 02 54 PM IST