Companies may pay 30% of advance tax in Q2

State Bank of India, India's biggest bank, is expected to see an advance tax outflow of Rs 1,390 crore in the second quarter of 2014-15, compared with Rs 1,120 crore in the corresponding quarter previous year.

Advance tax payments are a system of staggered payment of taxes by companies and are considered benchmarks for performance during the quarter. In the September quarter, companies are expected to pay 30 per cent of their total advance tax to the Income Tax Department.

Tata Consultancy Services is also expected to see an advance tax outflow of Rs 1,390 crore during the September quarter. The information technology major has seen its tax outflow increase 34 per cent this year from Rs 1,035 crore last year.

 

 

Among banks, Bank of India is expected to see its advance tax outflow increase by 22 per cent to Rs 330 crore. Bank of Baroda is expected to see a marginal rise to Rs 640 crore from Rs 630 crore a year ago. Union Bank's advance tax outflow is expected to be Rs 355 crore, against Rs 340 crore a year earlier. IDBI Bank is expected to pay Rs 323 crore, a fall of 24 per cent from last year.

HDFC is expected to pay Rs 735 crore, a rise of 13 per cent. Oil marketing firm Bharat Petroleum is likely to pay Rs 487 crore compared with Rs 202 crore in the corresponding period last year. Lupin and Glenmark are expected to pay Rs 231 crore and Rs 32 crore, respectively. Bajaj Auto is expected to pay 11 per cent less during the quarter at Rs 325 crore.

Shipping Corporation of India and Tata Motors are not expected to add to their payouts this quarter.

The Mumbai zone contributes to over a third of income tax collection nationally.