The tax payments are in line with industrial production, which zoomed 17.6% in April, the first month of the current fiscal, from 1.1% in the same period a year ago
Mirroring the uptick in the economy, corporate India's advance tax payments have jumped sharply in the April-June quarter of this fiscal, reports PTI.
Giving details of the advance tax collection, an income tax official said Life Insurance Corporation of India (LIC) paid an advance tax of Rs533 crore compared to Rs469 crore in the year-ago period, representing a 13.6% rise.
Today was the last day for making advance tax payments.
General Insurance Corporation (GIC) saw a steep hike of 170.5% in its advance tax payments at Rs46 crore from Rs17 crore in the year-ago period, while the steepest was that of HDFC Asset Management Company that paid Rs60 crore compared to Rs 10crore in the comparable period. HDFC AMC's higher tax payment also reflects the growth in capital markets.
Housing lender HDFC Ltd paid an advance tax of Rs215 crore as against Rs175 crore in the April-June period last fiscal, while Yes Bank paid Rs50 crore compared to Rs27 crore.
Aditya Birla group company Hindalco paid Rs55 crore compared to Rs45 crore last year, reflecting a rise of 22.2%, while Crompton Greaves gave Rs38 crore as against Rs28 crore a year ago, a 35% increase.
However, there was no change in tax payments of fast moving consumer goods (FMCG) major Hindustan Unilever (HUL) that stood at Rs75 crore, according to the tax department official.
Higher payment of advance taxes is a result of economic recovery and rising profitability of companies, the official told PTI.
The tax payments are in line with industrial production, which zoomed by 17.6% in April, the first month of the current fiscal, from 1.1% in the same period a year ago.
The gross domestic product (GDP) during the current fiscal is estimated to rise to 8.5% from 7.4% in 2009-10.
Besides, indirect taxes, which include customs, excise and service tax, went up by 49% to about Rs35,000 crore during April-May 2010-11.
Others who paid higher advance taxes include Pharma major Glaxo SmithKline, which deposited Rs42 crore this quarter as compared to Rs39 crore a year ago, the official said.
Century Mills has also shown an upward performance by paying Rs17 crore as against Rs12 crore, while Greaves Cotton has shelled out Rs9 crore, up from Rs4 crore in the first quarter a year ago.
Balkrishna Industries has paid Rs13 crore in this quarter as against Rs7 crore in the same period a year ago.
Grindwell Norton has shelled out Rs5 crore this time as against nil payment a year ago.
The government proposes to collect Rs3.01 lakh crore as corporate tax during the current fiscal, up from Rs2.5 lakh crore in the previous fiscal.
Expect the market to take a breather after the recent run-up
The market ended in the green today amid a high degree of volatility. The Sensex ended at 17,413, up 74 points (0.4%) and Nifty shut at 5,222, up 24 points (0.4%). The benchmarks touched their intraday lows during early afternoon. A fresh bout of buying helped the market post a recovery and extend its winning steak for another day, making it five days in a row.
Asian shares were up in choppy trade on Tuesday. Key benchmark indices in Indonesia, Japan, Hong Kong, Singapore and Taiwan were up 0.08% to 0.9%. However, South Korea's Seoul Composite was down 0.03%. The Chinese market will remain closed till Wednesday (16th June), for the Dragon Boat Festival.
The US markets were down on Monday (14th June) after Moody's Investors Service downgraded Greece's rating, fuelling concerns that Europe's debt crisis will hinder global economic recovery. The Dow ended 20.1 points lower (0.2%), at 10,190.9. The Nasdaq rose 0.3 points (0.02%) to 2,244. The S&P500 was down 1.9 points (0.18%) to 1,089.6.
Back home, the government has approved stake sale in Coal India Ltd (CIL) and Hindustan Copper Ltd (HCL) that could be worth up to $3.7 billion. In CIL, 10% stake will be sold and 20% stake in HCL will be offloaded. The stake sales are part of a broader divestment plan by the Indian government to offload minority holdings in 60 State firms in the coming years.
The southwest monsoon was active over Orissa, Vidarbha, coastal & south interior Karnataka and Kerala during the past 24 hours. The monsoon has further advanced into some more parts of Konkan & Goa and Maharashtra.
Foreign institutional investors were net buyers on Monday, purchasing stocks worth Rs347 crore and domestic institutional investors were net sellers of Rs41 crore.
The board of Mandhana Industries (down 0.6%) has recommended a final dividend of Rs0.75 per equity share of Rs10 for the year 2009-10. Tata Consultancy Services (TCS) (down 1.9%) and Xynteo, a strategic advisory firm specialising in low-carbon growth, have announced a collaboration to jointly create solutions for a low-carbon economy. These solutions will be initially built and deployed in the Nordic market. The partnership will look at new ways to help companies increase productivity while reducing CO2 emissions along their entire value chains right through to the final consumer.
The board of Shri Lakshmi Cotsyn (down 0.5%) had decided to convert its foreign currency convertible bonds (FCCBs) into equity shares for the total principal amount of $5,00,000. But due to the volatility in the capital market and continuous decrease in the share price of the company, it was difficult to allot warrants at Rs200 per warrant. Thereafter, it was decided that the number of warrants be increased to 70 lakh to be allotted to promoters and non-promoters in the ratio of 50 lakh and 20 lakh, respectively, at a price of Rs150 each in the place of 50 lakh warrants (35 lakh to promoters and 15 lakh to non- promoters) at Rs200 each, decided on 9th April. Thus, the company will raise Rs105 crore by way of allotment of 70 lakh warrants at Rs150 each to part-finance the cost of project of technical textiles, denim and sheeting.
Bank of India (up 1.1%) has raised Tier- II capital through issue of Upper Tier- II Capital Bonds of Rs1,000 crore on 11th June. The coupon rate is 8.48% per annum and tenure is 15 years with a call option after 10 years. Seamec (up 2.3%) has said that the vessel SEAMEC I is scheduled for statutory dry docking with effect from 14 June 2010. The expected period of dry docking would be around one month. After completion of dry docking, the vessel will be back with Dolphin Offshore, the present charterer.
Criston Dior Shopee or CD Shopee used bank guarantees issued for buying fabric to lure unsuspecting people for its 'investment' chain-marketing scheme
A Reserve Bank of India (RBI) investigation and intervention, following an alert by Moneylife has led to Union Bank of India (UBI) filing a First Information Report (FIR) with the Central Bureau of Investigation (CBI) against a chain-marketing scheme run by an outfit called M/s Criston Dior Shoppe.
Such an obvious rip-off of a famous French deluxe brand was unlikely to fool most savvy and educated people, but the email propagating this brand came to us from Latur in Maharashtra, where people are more likely to be conned. While all chain marketers offer extraordinary returns based on a plan that ropes in new customers, this one was sold with a difference.
It claimed bank guarantees (albeit fake) from a nationalised bank-in this case UBI-to create an illusion of safety and assured returns. We wrote to the RBI on 6 January 2010 and have now received details of the action taken.
RBI investigations revealed that Criston Dior Shopee or CD Shopee, is a partnership firm set up by Virendar Rai and Manjheet Singh of Haryana. It manufactures and retails readymade garments and has a unit at Manesar. On 29 October 2009, the firm opened two current accounts with UBI's Dwarka Branch in New Delhi. It obtained two guarantees from the bank for procurement of fabric. The RBI discovered serious lacunae in the process and has recalled and cancelled the guarantees. The CBI complaint has been lodged on the basis of a fraud investigation and other systemic issues.
However, the chain-marketing racket linked to the firm was a little different. CD Shopee runs this multi-level marketing (MLM) scheme through two websites www.cdshopee.com and www.cristondiorshopee.in. Access to first site is restricted; the second site is still under construction.
CD Shopee offers to double your returns in 12 months and "guarantees" it. The minimum investment requirement is Rs10,000 plus Rs2,000 as registration fee.
CD Shopee claimed to return 8% of the invested amount every month through post-dated cheques for 12 months. After the stipulated period it promised to return the full amount invested by a person. It enhanced the credibility of this promise through an agreement signed on a Rs100 stamp paper by CD Shopee with a bank guarantee issued by UBI.
An investor in the scheme was offered bigger benefits on introducing more investors to CD Shopee-these included 10% direct income, royalty income, binary income etc. As it turns out, the bank guarantee, which was the basis of attracting investors itself was fake. UBI lodged an FIR with the CBI on 9 March 2010.
While this is one aspect of the investigation, CD Shopee also claims an account (05710500378) with ICICI Bank in which 'investors' are asked to deposit money. The scheme was clearly attracting plenty of investors when Moneylife wrote to the RBI in January. We have five payment slip copies which alone show deposits of Rs28.32 lakh between 21 December- to 31 December 2009 at the Latur branch of ICICI Bank. CD Shopee is just one example of how ordinary people are lured by the chain-marketing racket and duped.