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Government auditor Comptroller and Auditor General of India (CAG) said that about one-third of the firms, listed with the Registrar of Companies (RoC), were not in the database of the Income Tax Department.

With a view to ascertaining the status of filing of return by corporate assessees, CAG said it compared the data obtained from different sources - Ministry of Corporate Affairs, DGIT Systems and DGIT Logistics, Research and Statistics.

"The difference between the working companies registered with RoC and the number of companies reported by DGIT (Logistics, Research & Statistics) ranged from 2.94 lakh (33.3 percent) to 3.94 lakh (36.4 percent) which indicates the extent of non-filing/non-stop filing of the return of income by the companies," said the CAG report tabled in Parliament.

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The Centre may not be fully achieving the objective for which Minimum Alternate Tax (MAT) provisions were introduced in the income tax law, a CAG report has concluded.

This is because the ‘MAT Credit’ carry forward and set off facility—reintroduced since April 1, 2006--- seems to have “nullified” the impact of MAT levy, according to the Comptroller & Auditor General (CAG).

The main objective of levy of MAT in the mid-Nineties was to bring ‘zero tax paying’ companies into tax net.

It may be recalled that from the Assessment Year 2006-07, the provisions of MAT credit were reintroduced allowing carry forward of MAT credit up to seven years. This was further extended up to 10 years via Finance Act 2009.

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The Jammu and Kashmir government has spent Rs 1,961 crore during the financial year 2015-16 in “violation of budgetary provisions”, the Comptroller and Auditor General (CAG) of India said in its report. “It was noticed that expenditure of Rs 1961.44 crore was incurred in 59 major heads of account without any (budget) provision during 2015-16,” said the report on “State Finance” for the year ending March 31, 2016.

The report was tabled in the Jammu and Kashmir Assembly recently during its special session on GST.

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Learning a lesson from the 2008 national loan waiver scheme for farmers, Maharashtra has decided to be vigilant while implementing its own scheme touted to benefit about 89 lakh farmers across the state.

The state’s cooperative and finance departments are studying the 2008 scheme and the objections raised by the Comptroller and Auditor General of India (CAG). On the scheme’s implementation, CAG found that in many cases, eligible farmers were turned down by lending institutions, whereas many who were ineligible benefited. CAG found that reimbursements amounting to Rs 164 crore were extended to micro-finance institutions in violation of guide lines. CAG also found evidence of tampering, overwriting and alteration of records, and poor or inadequate documentation of benefits.

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The Comptroller and Auditor General (CAG) of India has found “fraudulent irregularities” worth crores of rupees in relief disbursement to the 2014 flood victims.In its recently released report, the CAG says that floods caused death to 304 persons, damaged 2,40,004 houses, and caused loss of 26,461 live stock.The state government authorized the JK Industries Limited (JKIC) for procurement of tents for providing temporary shelters to families whose houses were fully damaged.“The JKCL procured 20,345 tents at a cost of Rs 13.26 crore. Audit observed that 4467 tents valuing Rs 2.84 crore were lying unutilised and 536 tents valuing Rs 34.04 lakh had gone missing during transit from Srinagar to Anantnag and Budgam,” the report reads.Hence, nearly 25 per cent of the tents procured at Rs 3.18 crore “could not be used” for intended purposes, it reads.As per the guidelines, SDRF had to pay Rs 1,300 per family for loss of clothing, and Rs 1,400 for loss of utensils/household goods to families whose houses were either washed away or inundated for more than a week or fully damaged.However, the audit as per the report noticed that relief amounting to Rs 12.60 crore was “not provided” to 46,680 eligible ones.“On the other hand, gratuitous relief of Rs 1.42 crore was provided to ineligible families of Rs 0.91 crore and to families not affected by flood Rs 0.51 crore,” it says.The CAG report states that government provided Rs 2.14 crore under the SDRF to the SMC for collection of garbage and its disposal at the land fill site located at Acchan and for disposal of carcasses after the floods of September 2014.The Corporation incurred an expenditure of Rs 1.37 crore on collection of Rs 73,435 metric tonnes of garbage and its disposal at landfill site during September 17 to November 15, 2014.However, the CAG report said that records showed that number of tipper trucks and JCBs shown utilized by the SMC for garbage clearance was at variance with the number verified by the ward officers.

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Poor execution of key storm water drain projects by Greater Chennai Corporation not only resulted in a loss of Rs 54.33 crore to the taxpayer but also left the city uninsured during heavy rainfall, according to the Comptroller and Auditor General (CAG) of India’s report. The CAG report on urban local bodies for 2016, tabled in the assembly on Wednesday, flayed the corporation as the audit found that several storm water drains in added areas were constructed without studying the topography. Funds for the construction were drawn from state government grant received under the Chennai Mega City Development Mission (CMCDM), which also came under scrutiny. “Execution of storm water drains under CMCDM without topographical, meteorological and hydrological study and without ultimate linkage to natural water bodies had resulted in construction of drains with inadequate size, which would ultimately result in inundation of roads,” the report said. The report identified 51 new drains constructed between 2011 and 2014 using CMCDM funds in the added zones of Ambattur and Valasaravakkam among others. These drains had to be reconstructed within two years as the corporation found that the structures had not been designed appropriately. The reconstruction exercise cost Rs 54.33 crore, on top of the Rs 20.58 crore spent on initial construction. The report also noted that the civic body violated the Tamil Nadu Transparency in Tenders Act, 1998 by handing new road projects to contractors without calling for tenders.

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The Comptroller and Auditor General of India (CAG) gave a scathing account of the inadequacies of the Commercial Taxes Department (CTD) in collecting data, in its report on the revenue sector for the year ended March 31, 2016.

The Tamil Nadu Commercial Tax Manual prescribes for coordinating with other departments/agencies to obtain information and to make use of it in detecting suppression and evasion of tax. However, the CAG said, the CTD did not have any system in place for the collection of third party data.
Further, the report mentioned that the failure of the CTD to implement the GO issued by the Industries Department resulted in non-realisation of deferred tax of Rs 1,637.61 crore from January 2007 to September 2013. “The Commercial Taxes Department failed to institute a well-established system of collection of data from various work awarders in the State,” read the report. “This resulted in contract receipts escaping assessment.”
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