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Tata Group emerges largest taxpayer

NEW DELHI: Tata Group has emerged as the largest taxpayer contributing 10.3 per cent to the total corporate tax kitty of the government, amounting to Rs. 15,130.83 crore in 2006-07.

This has been revealed by Assocham Eco Pulse (AEP) study on ‘Tax revenue contribution by top 50 private Indian companies’, covering 50 major companies. India Inc. which shelled out Rs. 29,748 crore, with 20.3 per cent share in the corporate tax collection in the last fiscal and it is further expected to grow at the rate of 18 per cent in the current financial year.

Despite witnessing a negative growth rate of 39 per cent in tax cost, Reliance Industries (Mukesh Ambani Group) was the second highest taxpaying group, carving up to Rs. 2,372 crore.

Aditya Birla Group has emerged as the third largest tax paying business house after Reliance, with 0.93 per cent share in the corporate tax revenue of the government. The consolidated amount of tax paid by all the companies in the group was Rs. 1,364.10 crore.

The government collected Rs. 1,46,497 crore by means of corporate tax imposed at the rate of 30 per cent.

Strong economic growth for consecutive four years, robust demand, huge investment in the domestic sector, acquisition activities at high radar have fuelled the growth performance of corporate India leading to expansion in their tax share, says Assocham President, Venugopal N. Dhoot.

Among the Indian private companies paying corporate tax to the government, Tata Steel emerged as the leader with a share of 5.75 per cent amounting to Rs. 8,426.76 crore and recording a growth rate of 22 per cent in 2006-07.

Tata Tea is the second largest taxpayer accounting for two per cent share at Rs. 3,037.54 crore, registering 28 per cent growth rate in the period analysed.

ITC stood as the third largest contributor of Rs. 1,472.84 crore accounting for one per cent share in the corporate tax revenue, appending a growth of six per cent from the last year.

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