Parliamentary Watch

IRREGULARITIES IN 356 CASES: CAG

The Comptroller and Auditor General of India (CAG) has rapped direct tax authorities for irregularities in assessments of personal income and corporation taxes over the years. The auditors have found irregularities in 356 high-value cases pertaining to corporation taxes with the tax effect of Rs. 12,476.53 crore. In a report on direct taxes for 2019-20 table in Parliament on Tuesday, the auditor suggested that the government consider to put in place aa robust IT system and internal control mechanism to avoid such errors. There were arithmetical errors in computation of income and tax, mistake in levy of interest, irregularities in allowing depreciation, capital losses, incorrect allowance of business expenditure, etc. it said.

STRATEGIC SALE CONCERNS

India’s accounting watchdog, Computer & Auditor General (C&AG) has raised concerns on the strategic sale of government stake in Kamara jar Port Limited (KPL) to Chennai Port Trust (CHPT). In March 2020, the government sold its entire 66.67% stake in KPL to CHPT for Rs. 2,383 crores. The auditor in its report noted that proceeds realized by the government from disinvestment of KPL was substantially borrowed from the market by CHPT, which defeated the spirit of disinvestment. “Due to poor financial condition, CHPT had to raise a loan of Rs. 1,775 crores at a rate of interest of 8% per annum for purchasing the Gol’s stake in KPL. In addition to principal repayment, it put an additional interest burden of approximately Rs.142 crore (Per annum) on the CHPT,” it stated in its report.

NO GST ON PETRO PRODUCTS

The Goods and services Tax Council has not recommended bringing petroleum products under the reformed taxation regime even as certain representations have been made to the government to include petrol and diesel in GST, Parliament was informed on Tuesday.

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