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: form 3cd :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: VAT RATES :: cpt :: list of goods taxed at 4% :: Central Excise rule to resale the machines to a new company :: empanelment :: articles on VAT and GST in India :: ACCOUNTING STANDARD :: VAT Audit :: ARTICLES ON INPUT TAX CREDIT IN VAT :: ACCOUNTING STANDARDS :: TDS :: due date for vat payment :: TAX RATES - GOODS TAXABLE @ 4%
 
 
General »
  Withdrawal of Legal Tender Character of the existing Bank Notes in the denominations of ₹ 500/- and ₹ 1000/- (Updated as on November 30, 2016)
 Cases for tax scrutiny will be selected by machines
 Time to revisit 1997 direct tax rates, says P Chidambaram
 Lok Sabha passes Bill to tax black money deposits post demonetisation
 Last day to pay property tax with old notes
 Income tax department asks IDS declarants to pay tax by 30 November
 Why PM Narendra Modi must beware of the breathtaking Arthakranti tax
 Japanese firms seek easing of restrictions on funding in India
 Tax on black money: How the cookie will crumble
 Income tax officials say raids on jewellers based on 'credible intelligence' proving fruitful
 Exchange window being misused, government forced to reduce limit to Rs 2000, says Arun Jaitley

CBDT in soup for bypassing House
April, 25th 2012

The Comptroller and Auditor General (CAG) has raised concern about the Central Board of Direct Taxes (CBDT) incurring expenditure to the tune of Rs 37,000 crore over the last five years without taking approval of Parliament.

In its report on the Union Accounts tabled in Parliament on Tuesday, CAG has pointed out how the CBDT, under the department of revenue in the finance ministry, has violated provisions of Article 114(3) of the Constitution which stipulates that no money shall be withdrawn from the Consolidated Fund of India except under appropriation made by law.

The auditor has argued that the payment of interest on refunds of excess tax is a charge on the Consolidated Fund of India and is therefore payable only after having been authorized by Parliament.

The excess expenditure, as pointed out by the auditor, works out to over 2.3 times the total expenditure budget of CBDT (Rs 4,522 crore) for 2010-11.

A senior CAG official said it would be untenable for the CBDT to show an expenditure on only refunds of interest of such magnitude, and hence to avoid any questions from MPs on the subject it has taken the safe route of concealing an accepted expenditure item by netting it off from collections of revenue.

"The CBDT has been classifying the interest on refunds of excess tax as reduction in revenue and this incorrect practice has been commented upon in the last two years' CAG report on Union Accounts as well as in the CAG's report on direct taxes for 2008 and in earlier years also, but no corrective action has been taken by the department," CAG observes.

Audit scrutiny revealed that as in the past, no budget provision for interest on refunds was made in the budget estimates for the fiscal 2010-11 and an expenditure on interest on refunds amounting to Rs 10,499 crore was incurred by the department in contravention of the Constitutional provision.

"Expenditure of the order of Rs 37,365 crore on interest payments had been incurred over a period of the last five years without obtaining approval of Parliament through the necessary appropriations," the report says.

Expenditure on interest on refunds of taxes

Years-----------Expenditure (In Rs Crore)

2006-07-------------3,693

2007-08-------------4,444

2008-09---------5,778

2009-10---------12,951

2010-11--------10,499

Total----------37,365

Source: CAG

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - Our Mission

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