Latest Expert Exchange Queries

GST Demo Service software link: https://ims.go2customer.com
Username: demouser Password: demopass
Get your inventory and invoicing software GST Ready from Binarysoft info@binarysoft.com
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) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
 
 
 
 
Popular Search: TDS :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: empanelment :: ACCOUNTING STANDARDS :: VAT Audit :: cpt :: due date for vat payment :: VAT RATES :: ACCOUNTING STANDARD :: form 3cd :: Central Excise rule to resale the machines to a new company :: ARTICLES ON INPUT TAX CREDIT IN VAT :: list of goods taxed at 4% :: articles on VAT and GST in India :: TAX RATES - GOODS TAXABLE @ 4%
 
 
General »
 FinMin wants RBI to lower rates, boost domestic demand
 Employees may have to bear the GST burden on benefits
 Advance tax payout by top cos grows just 2% in Sept quarter
 Why abolishing personal income tax may not be a good idea
 Questions about the GST cess
 How to prepare for the looming tax-extension deadline
 Income tax: Gratuity for employees raised to Rs 20 lakh; here is how you will benefit
 Haryana to set up scrutiny panel on GST benefits
 Waive certain taxes for companies in insolvency proceeding
 I-T department to appoint 7600 more tax return preparer scheme to cover entire country
 All eyes are on GST as Centre plans higher social pension

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finance ministry, has violated provisions of Article 114(3) of the Constitution which stipulates that no money shall be withdrawn from the Consolidated Fund of India except under appropriation made by law.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 2017 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