GMDC advance tax payment up 54%

Amid present tight economic conditions, while corporate struggle to maintain their bottom lines, Gujarat's public sector enterprises (PSEs) have exhibited strong earning potential by paying higher advance tax for year 2012-13.

Leading the pack is the state-run mining major, Gujarat Mineral Development Corporation Ltd (GMDC), which has paid Rs 184 crore as advance tax for the fiscal 2012-13, higher by over 54 per cent from Rs 84 crore the company paid last year, data provided by Income Tax department showed. "Our strong performance in mineral production, cost management measures and initiatives taken in the non-conventional energy generation has started yielding returns. We expect similar strong performance to continue for the rest of the fiscal," said V S Gadhvi, managing director, GMDC.

 

According to Income Tax officials, Gujarat State Finance Corporation has paid Rs 104 crore in advance tax, up by 18.26 per cent from Rs 85 crore paid last year. Similarly, the state-owned gas distribution player, Gujarat State Petronet Ltd (GSPL) has paid Rs 64 crore as advance tax for the fiscal 2012-13, higher by 11 per cent from Rs 57 crore last fiscal.

"Higher advance tax payments by companies run by state government shows their financial and operational strength. This will get further boost with improved economic conditions after the slew of monetary measures being taken by Reserve Bank of India (RBI)," said an analyst in Ahmedabad.

According to data shared by the income tax department, the corporate tax collection up to September 15, 2012 in the Gujarat circle has increased by over 20 per cent to Rs 4,215 crore compared to Rs 3,483 crore last year. The department has set the target of Rs 15,924 crore as corporate tax for the current fiscal.

Other corporate groups that paid advance tax include Gujarat Gas Company Ltd (GGCL) and Axis Bank Limited. GGCL paid Rs 48 crore as advance tax, lower by 8 per cent from Rs 52 crore it paid in the previous year.