This excerpt taken from the TTM 20-F filed Sep 30, 2008.
Income tax expense increased to Rs.8,113 million from Rs.5,618 million during fiscal 2007 mainly due to Increase in pre tax income. The effective tax rate during fiscal 2007 was 30.7% compared to 27.4% in fiscal 2006. Increase in tax rate is primarily on account of tax on undistributed earnings of subsidiaries and a tax benefit recorded in fiscal 2006 on sale of shares of a subsidiary company. The increase was partially offset by higher tax benefit on research and development and tax free dividend income.
This excerpt taken from the TTM 20-F filed Sep 27, 2007.
Income tax expense increased to Rs.5,618 million during fiscal 2006 compared to Rs.5,100 million in fiscal 2005. The effective tax rate during fiscal 2006 was 27.4% as compared to 27.7% in the fiscal 2005. During fiscal 2006, a reduction in permanent tax benefits on account of lower dividend income as well as higher tax provision on undistributed income of subsidiaries, were partly offset by permanent tax benefits on account of a weighted deduction of 150% on research and development expenses and long term capital gain benefits of the sale of stake in a subsidiary.
This excerpt taken from the TTM 20-F filed Sep 27, 2006.
Despite the increase in Income before income tax, income tax expense decreased to Rs.5,100 million in fiscal 2005 from Rs.5,264 million in fiscal 2004 resulting in decrease in our effective tax rate from 37.5% in fiscal 2004 to 27.7% in fiscal 2005. This was primarily as a result of permanent tax benefits accruing to us on account of research and development expenses, credit upon restructuring of a subsidiary, and a decrease in long term capital gains tax on investments in equity securities. We were required to pay a Minimum Alternate Tax on our book profits in fiscal 2004. However, we were not subject to the Minimum Alternate Tax during fiscal 2005.
This excerpt taken from the TTM 20-F filed Sep 28, 2005.
Income tax expense increased to Rs.5,264 million in fiscal 2004, compared to Rs.1,888.4 million in fiscal 2003. This change was primarily a result of the substantial increase in income before income taxes. The effective tax rate for fiscal 2004 decreased to 37.5% from 40.8% for fiscal 2003. As we were required to pay a Minimum Alternate Tax on our book profits, which cannot be carried forward and set- off against future tax liability, our effective tax rate was higher than the applicable marginal tax rate of 35.875% in fiscal 2004.