By IANS,
New Delhi : Contrary to popular belief, tax expenses of companies with the infrastructure status have gone up by 90.3 percent, a survey released here Sunday said.
According to the Associated Chambers of Commerce and Industry’s (Assocham) Financial Pulse study, tax expenses for companies under the infrastructure status have gone up because of improved realisations.
This has contributed to better margins and improved bottomlines of such companies, thereby increasing their tax liabilities.
Infrastructure status is conferred upon industries and companies engaged in activities like building expressways, highways, airports, ports and rapid urban rail transport systems.
The corporates analyzed for the study for the first quarter of 2009-10 included Gammon Infrastructure Projects (25.4 percent), GMR Infrastructure (67.9 percent), Lanco Infratech (182.1 percent) and Supreme Infrastructure (85.7 percent).
“In order to drive the Indian economy on a serious institutional reform-led growth, infrastructure still remains one of the most critical issues requiring a fresh look at the core level,” said Assocham president Sajjan Jindal.
According to the study, on the interest cost parameter the real estate sector has been found to be in maximum divergence.
The hospitality sector, which is among the severely hit sectors due to the global economic downturn, is next to the real estate sector on the basis of divergence in growth rate of interest cost. The growth in the financing cost of hotels stood at 86 percent.