Corporate India is expected to cough up about Rs 1,500 crore (Rs 15 billion) lesser tax than the Budget estimates for 2003-04.

This is evident from the advance tax payments made by the top 100 domestic companies in the first quarter of this fiscal.

Based on the tax collections for the first quarter of 2003-04, the total corporate tax collection for the fiscal is likely to be Rs 50,000 crore (Rs 500 billion), which is lower than the budget estimate of Rs 51,499 crore (Rs 514.99 billion).

The top 100 companies will pay about Rs 30,000 crore (Rs 300 billion) of the total corporate tax collection in 2003-04, against Rs 27,251 crore (Rs 272.51 billion) in 2002-03.

In the last fiscal, the total corporate tax mopped up by the finance ministry was Rs 44,700 crore (Rs 447 billion), against the Budget target of Rs 48,616 crore (Rs 486.16 billion).

Under income-tax rules, companies pay 15 per cent of their corporate tax dues by June 15 and 30 per cent each by September 15 and December 15. The final 25 per cent is paid by March 15.

The staggered payment of corporate tax by companies ensures that the finance ministry has a continuous cash flow throughout the year. It also helps companies to avoid bunching up their demand for cash at the end of the fiscal.

Since companies pay their tax instalments based on their assessment of market and profitability conditions that is likely to prevail during the fiscal, the advance tax estimates also give an accurate picture of the possible market trends during the year. The first instalment is, therefore, the most significant.

As per data compiled by the income-tax department, the top 100 companies have paid Rs 4,499.94 crore (Rs 44.999 billion) as their first instalment of corporate tax in 2003-04.

These companies traditionally account for over 60 per cent of the total corporate tax collection of the revenue department.

The list is led by the Oil and Natural Gas Corporation, which has paid Rs 706 crore (Rs 7.06 billion), followed by the National Thermal Power Corporation with Rs 229 crore (Rs 2.29 billion) and the State Bank of India with Rs 221 crore (Rs 2.21 billion).

Of the first 10 companies, only ITC at number seven is a private sector company with a tax payment of Rs 110 crore (Rs 1.10 billion).

The list is dominated by petroleum and banking sector companies.