These include Hindustan Unilever Ltd, India’s largest FMCG company by sales, ICICI Bank, Tata Consultancy Services (TCS), Bajaj Auto, Ultratech Cement, Tata Steel and the country’s largest lender, State Bank of India. These include Hindustan Unilever Ltd, India’s largest FMCG company by sales, ICICI Bank, Tata Consultancy Services (TCS), Bajaj Auto, Ultratech Cement, Tata Steel and the country’s largest lender, State Bank of India.

At least 16 top companies have registered a sharp decline in their advance tax payments for the third quarter of fiscal 2017, compared to the period a year ago — in what analysts and tax officials perceive as further compounding of the slowdown in the wake of the withdrawal of Rs 500 and Rs 1,000-notes on November 8.

These include Hindustan Unilever Ltd, India’s largest FMCG company by sales, ICICI Bank, Tata Consultancy Services (TCS), Bajaj Auto, Ultratech Cement, Tata Steel and the country’s largest lender, State Bank of India.

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The total advance tax payment of the top 43 firms in the financial capital of the country for the third quarter of fiscal 2017, rose only 10 per cent to Rs 27,321 crore from Rs 24,811 crore a year ago. The total corporate advance tax collection of the 43 companies since the beginning of fiscal 2017 till December 15 has grown 8.12 per cent to Rs 66,768 crore from Rs 61,751 crore a year ago.

“There was a slowdown in the economy which has only increased since demonetisation on November 8 and the advance tax numbers are indicative of this slowdown.” “There was a slowdown in the economy which has only increased since demonetisation on November 8 and the advance tax numbers are indicative of this slowdown.”

Mumbai contributes over 33 per cent to the total direct tax collection in the country.

Experts say a mere 10 per cent increase in advance tax collection of the top 43 companies is troubling. “There was a slowdown in the economy which has only increased since demonetisation on November 8 and the advance tax numbers are indicative of this slowdown.”

However, the full impact of the slowdown will be reflected by the end of this quarter,” said Saurabh Mukherjea, chief executive officer of Institutional Equities at Ambit Capital which, in a report, after the scrapping of high-value notes had projected a sharp decline in GDP growth for FY17.

Under the Income-Tax Act, companies are required to pay 15 percent of their total advance tax in the first quarter, followed by 30 per cent, 30 per cent and 25 per cent in the next three quarters, respectively. Companies in India pay advance tax a fortnight before the end of every quarter on their projected earnings and these numbers are sometimes used as a proxy for their financial performance.

According to the tax department, HUL has paid Rs 560 crore as advance tax for the third quarter of FY 2017, down 9.68 per cent from Rs 620 crore in the same period a year ago, according to data accessed by The Indian Express. “FMCG companies generally show secular growth but going by the data it seems there has been a slowdown this quarter,” said a senior tax official.

SBI which is, traditionally, the highest tax payer in Mumbai region has also seen a 25.94 per cent decline in advance tax payout for the third quarter of this fiscal when compared to the same period a year ago. SBI has paid Rs 1,282 crore on December 15 as against Rs 1731 crore in the same period a year ago. ICICI Bank paid Rs 1200 crore this quarter, down 27 per cent from Rs 1650 crore from a year ago.

Sources said lower advance tax payments by SBI and ICICI bank is due to provisioning of non-performing assets (NPAs). Central Bank of India has paid Rs 165 crore against Rs 200 crore, down 17.5 per cent for the reporting quarter while Standard Chartered Bank has paid Rs 570 crore against Rs 655 crore, down 12.98 per cent.

Automobile firm Bajaj Auto has paid Rs 575 crore against Rs 700 crore down 17.86 per cent for the reporting quarter. TCS has paid RS 1540 crore against Rs 1600 crore, down 3.75 per cent from a year ago. Advance tax payment of Tata Steel declined 11 per cent to Rs 400 crore from Rs 450 crore a year ago. Ultratech Cement paid Rs 220 crore against Rs 250 crore, down 12 per cent. Reliance Industries Ltd, according to the tax data, is the highest advance tax payer of Mumbai region. It has paid Rs 2600 crore against Rs 2355 crore, up 10 per cent for the third quarter of fiscal 2017.

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