The proposed education cess on corporate tax and excise duty will put an additional burden of Rs 2,605 crore (Rs 26.05 billion) on companies in 2004-05.
Of this, Rs 1,680 crore (Rs 16.80 billion) is on account of the cess on excise duty and Rs 925 crore (Rs 9.25 billion) on the cess on corporate tax.
A quick study by the Business Standard Research Bureau shows that 1,148 companies paid excise duty of Rs 84,000 crore (Rs 840 billion) in 2002-03.
Assuming constant production in 2004-05, these companies will have to bear an additional Rs 1,680 crore (Rs 16.80 billion) this year on way of excise duty. The corporate sector, which paid tax of Rs 46,190 crore (Rs 461.90 billion) in 2003-04, will have to pay Rs 925 crore (Rs 9.25 billion) by way of the cess on corporate tax.
Indian Oil Corporation will be loaded with an additional burden of Rs 354 crore (Rs 3.54 billion). Of this, Rs 308 crore (Rs 3.08 billion) will be the cess on excise and Rs 46 crore (Rs 460 million) the cess on corporate tax. IOC paid an excise duty of Rs 15,425 crore (Rs 154.25 billion) in 2002-03 and corporate tax of Rs 2,275 crore (Rs 22.75 billion) in 2003-04.
Another state-owned oil firm Hindustan Petroleum Corporation will have to pay an additional Rs 135 crore (Rs 1.35 billion [Rs 114 crore (Rs 1.14 billion) cess on excise and Rs 21 crore (Rs 210 million) on corporate tax]. Bharat Petroleum Corporation will have to pay up Rs 124 crore (Rs 1.24 billion).
ITC will have to pay Rs 103 crore (Rs 1.03 billion) by way of the cess on excise and Rs 15 crore (Rs 150 million) as the cess on corporate tax. State Bank of India will pay Rs 117 crore (Rs 1.17 billion) for the cess on corporate tax. It paid Rs 5,872 crore (Rs 58.72 billion) corporate tax in 2003-04.
ONGC will have to pay Rs 97 crore (Rs 970 million), followed by Reliance Industries at Rs 91 crore (Rs 910 million), SAIL at Rs 50 crore (Rs 500 million). Maruti Udyog [Rs 41 crore (Rs 410 million)] and Punjab National Bank and Tata Steel [Rs 40 crore (Rs 400 million) each].