Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
Popular Search: articles on VAT and GST in India :: ACCOUNTING STANDARDS :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: Central Excise rule to resale the machines to a new company :: due date for vat payment :: form 3cd :: VAT RATES :: VAT Audit :: cpt :: TDS :: ARTICLES ON INPUT TAX CREDIT IN VAT :: list of goods taxed at 4% :: empanelment :: ACCOUNTING STANDARD :: TAX RATES - GOODS TAXABLE @ 4%
General »
 Number of companies paying tax over Rs 100 crore declines in 2013-14
 Tax and the dilemma of the self-employed
 Banks warn share tax hike threatens Paris' post-Brexit appeal
 PMC may decide on property tax rebate for IT firms this week
 I-T Dept is giving out certificates of appreciation. Have you received yours?
 Government works on ironing out benefits refund mechanism for exportersa
  Tax officials are using an IDS provision to question transactions beyond six-year-limit
 Tax-free bonds rally like midcap funds
 Senior citizens do not have to pay advance tax on salary and interest income
 GST: Audit commissioners to get adjudication powers
 Interest on NRE rupee account can be exempt from tax under FEMA

Reliance Infra, Tata pocketed tax gains worth Rs 434 crore
February, 27th 2014

Misrepresentation of taxes by major power companies meant Mumbaikars had to cough up an extra Rs 434 crore in three years, the Aam Aadmi Party claimed on Wednesday.

Releasing another dossier on what they called corrupt practices in the power sector, they alleged that Reliance Infra accrued benefits from the state but did not pass them on to the consumer, and flagged a conflict of interest as the state energy secretary is also chairman of Mahagenco, the holding company for the state power transmission, distribution and generation arms.

"Power companies pay tax at the rate of 18% but claim the full 33% as part of their remuneration which is paid for by the consumer," said the AAP's Satish Jain, pointing at Rinfra and Tata Power and accusing the power regulator of letting them off easily.

Both firms denied the claims, pointing out that MERC had moved the Appellate Tribunal of Electricity, but it had ruled in their favour.

AAP said the Maharashtra Electricity Regulatory Commission should have taken the tax mismatch issue to the Supreme Court. "If MERC does not file a case against the companies in the SC, we will," said Jain, adding that AAP's Prashant Bhushan was ready to fight the case in the SC.

Tata Power rebutted the AAP claim that 15% more tax was raised by the power companies from consumers by explaining its case as it had in the tribunal while RInfra said this attitude towards the tribunal ruling reflected their (AAP's) disregard for the judicial process (see box).

In a fresh onslaught against Reliance, AAP raked up the case of the Vidarbha Power Industries Ltd (VPIL), a 100% subsidiary of Reliance Power, which, it claimed, was given 300 acres of heavily subsidized land to provide power for developing industries in Vidarbha. "On completion in 2012, VPIL contended there was no demand for power in Vidarbha and signed a deal with RInfra's distribution unit in Mumbai. This is how resources are snatched for public good and diverted to purely commercial purposes," said the party.

It added that VPIL borrowed $150 million without hedging the loan. Losses due to a sharp depreciation of the rupee were passed on to consumers.

"In drought-prone Vidarbha, where farmers are committing suicide, VPIL consumed an enormous amount of water and did not deliver on the purpose for which it was set up. Should all the country's public resources be at the disposal of Reliance?" asked Anjali Damania, the Maharashtra convener of AAP.

"No concessions for land, water or any other facility has been given by the Maharashtra government to VIPL as falsely alleged by AAP," said an RInfra spokesperson.

AAP has received a legal notice from Reliance over its earlier allegations implicating the company. Jain, involved in collecting the dossier's data, dismissed it, saying they are not interested in replying to a private company that does not feel the need to provide an explanation for its actions.

AAP's allegation of a conflict of interest as Ajoy Mehta is both state power secretary and chairman of Mahagenco and that he has been accused of cartelization by the SC were strongly dismissed by Mehta. "As the energy secretary, I have nothing to do with tariff determination. It is fixed through a judicial process, which is the MERC," he said, denying that the SC had passed strictures against him.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Desktop Application Development Outsourcing Desktop Application Development Offshore Desk

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions