It’s one of the toughest times India Inc has faced. With a slowdown in the economy, rising inflation and eroding profits, there is tremendous pressure on companies across sectors. The worst hit are the oil companies as crude prices are zooming to record highs.
But there is a silver lining amidst the gloom, especially for the government. With the tax coffers filling up like never before, thanks to more taxes being paid by India’s top performing companies, the government can breathe at least a little easier.
Despite incurring heavy losses, India’s oil companies are the top taxpayers. Read on to find out who the top 10 corproate taxpayers in India are…
The Oil and Natural Gas Corporation retained its position as the highest corporate taxpayer for the financial year 2007-2008 though it paid a lesser amount than in the previous year.
It paid taxes to the tune of Rs 9,557 crore (Rs 95.57 billion) compared to Rs 10,045 crore (Rs 100.45 billion) in 2006-07.
India Inc contributed 60 per cent to the direct tax collection, which amounts to a whopping Rs 1,88,770 crore (Rs 1887.70 billion).
2. Indian Oil Corp
Even as oil marketing companies are reporting losses on rising crude oil prices, Indian Oil Corporation emerged as the second highest taxpayer, having paid a whopping Rs 4,625 crore (Rs 46.25 billion) in taxes in 2007-08.
During 2006-07, IOC paid a tax of Rs 1,125 crore (Rs 11.25 billion).
3. State Bank of India
State Bank of India, the country’s largest bank is ranked third in the list of top taxpayers.
SBI made the government coffers swell by Rs 4,599 crore (Rs 45.99 billion) in 2007-08. SBI had paid Rs 4,266 crore (Rs 42.66 billion) in taxes in 2006-07.
Brushing aside fears of industrial slowdown, the government’s revenue collections from direct tax such as corporate and income tax continued the growth momentum and was up by 43.45 per cent at Rs 49,411 crore (Rs 494.11 billion) during the April-June 21 period over the corresponding period last fiscal.
The National Thermal Power Corporation is the 4th highest taxpayer in the country.
It shelled out Rs 3,587 crore (Rs 35.87 billion) in 2007-08.
In 2006-07 the company contributed Rs 4,289 crore (Rs 42.89 billion) to the government’s tax kitty.
The Steel Authority of India Ltd was the 5th top taxpayer in the country.
It contributed Rs 3,509 crore (Rs 35.09 billion) during 2007-08, an amount higher than the previous year.
In 2006-07, it contributed Rs 3,429 crore (Rs 34.29 billion).
6. Reliance Industries
Reliance Industries is the largest individual tax contributor in the private sector, ranking sixth in the overall list.
In 2007-08, the company paid Rs 2,742 crore (Rs 27.42 billion) in corporate tax, 78 per cent more than Rs 1,538 crore (Rs 15.38 billion) in 2006-07.
7. Life Insurance Corporation of India
Life Insurance Corporation of India is ranked 7th amongst India’s top taxpayers.
The company paid Rs 2,627 crore (Rs 26.27 billion) in 2007-08. This was lower by Rs 1,016 crore (Rs 10.16 billion) that what it paid in 2006-07.
8. Deposit Insurance and Credit Guarantee Corporation
The Deposit Insurance and Credit Guarantee Corporation contributed Rs 2,295 crore (Rs 22.95 billion) to the tax coffers in 2007-08 compared to Rs 1,587 crore (Rs 15.87 billion).
The Deposit Insurance Corporation (DIC) Bill was introduced in the Parliament on August 21, 1961.
A decade later, in 1971, the Credit Guarantee Corporation of India Ltd was set up. While deposit insurance was introduced to protect depositors, ensure financial stability, instill confidence in the banking system and help mobilise deposits, the establishment of the Credit Guarantee Corporation was to ensure that the credit needs of the neglected sectors and weaker sections were met.
The essential concern was to persuade banks to make available credit to not so creditworthy clients. In 1978, the DIC and the CGCI were merged to form the Deposit Insurance and Credit Guarantee Corporation.
Bharat Heavy Electricals Ltd stood 9th by contributing Rs 2,036 crore (Rs 20.36 billion) as taxes during the year 2007-08.
It paid nearly double the amount this year compared to Rs 1,340 crore (Rs 13.40 billion) in 2006-07.
10. Tata Steel
Five Tata companies — Tata Steel, Tata Motors, Tata Consultancy Services, Tata Sons and Tata Chemicals — put together paid taxes to the tune of 3,298 crore (Rs 32.98 billion).
Tata Steel is the tenth highest taxpayer, paying Rs 1,889 crore (Rs 18.89 billion) in taxes in 2007-08.
It had paid a higher amount of Rs 1,938 crore (Rs 19.38 billion) during 2006-07.