Thursday was the last day for payment of advance tax for the third quarter, companies have to pay advance taxes in four installments with one due every quarter.
The slip in advance tax collection has increased the worries. While GDP growth has been tempered and industrial output has declined in October.
Some large companies including Reliance Industries, SBI and Maruti Suzuki reported a slip in advance tax payout for the quarter against the last year witnessing a fall in third installment.
The leading player seem to be TCS, the countries largest software exporter whose payout doubled to Rs 530 crore in the third quarter against Rs 230 crore last year. Tata Motors saw extreme slump with payment down by Rs 80 crore against Rs 220 crore compared to last year.
A finance ministry official said. “The flat growth in advance tax would make it difficult to achieve the direct tax collection target of Rs 5.32 lakh crore estimated for this year”
Income tax officials in Mumbai said that more numbers are coming in and that a clearer picture is expected by the weekend.