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Corporate India shells out Rs1.75 lakh cr as taxes in FY08

Corporate India shells out Rs1.75 lakh cr as taxes in FY08
PTI
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First Published: Tue, Jul 07 2009. 03 35 PM IST
Updated: Tue, Jul 07 2009. 03 35 PM IST
New Delhi: Corporate India shelled out Rs1,75,428 crore as taxes, including corporate tax and the Fringe Benefit Tax, in 2007-08 financial year.
For the purpose of estimating the tax expenditure, data pertaining to 4,10,451 companies with a total income of Rs4,79,898 crore during 2007-08 was analysed in the Budget for 2009-10.
“These companies paid Rs1,58,225 crore as corporate tax (inclusive of surcharge and education cess) during the same financial year (2007-08),” the Budget document stated.
“These companies also paid Rs6,533 crore as Fringe Benefit Tax and Rs10,670 crore as Dividend Distribution Tax during the year,” it added.
The total tax expenditure for corporate India comes out to Rs1,75,428 crore in the reviewed fiscal.
The companies reported Rs7,11,557 crore as profits before taxes (excluding the loss-making companies) in 2007-08.
In a comparison of the effective tax rate of public sector companies with that of private sector ones, the document said, “It is evident that the public companies pay a larger proportion of their profits as tax than the private companies.”
In the Budget for 2009-10, a sample of 1,808 public sector companies and 4,07,765 private sector firms was taken.
The analysis revealed that private firms accounted for 75.06%, while public firms contributed 24.94% of the total tax payable by the companies.
“While the manufacturing sector has a higher effective tax rate and is paying more tax than the service sector, both the sectors have an effective tax rate that is way below the statutory rate of 33.99%.”
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First Published: Tue, Jul 07 2009. 03 35 PM IST