Thursday , November 22 2018

CAG to audit demoneitsation impact on Govt tax revenues

CAG is ready to determine the demonetisation impact of Rs 500, Rs 1000 notes on government tax revenues.

The Comptroller and Auditor General of India, Shashi Kant Sharma plans to audit the effect of demonetisation and the impact it has had on the administration’s tax revenues.

CAG Shashi Kant Sharma

He said the accountant is preparing to audit the revenues of tax under the new Goods and Service tax(GST) system and has started capacity building and restructuring its audit methodology and techniques.

It has already completed an audit of agricultural crop insurance scheme, flood forecasting and flood control under special audits and now it is involved in several significant audits like Right to Education, defence pensions, National Rural Health Mission and Ganga Rejuvenation and the reports are going to be ready by the end of the existing year.

Sharma stated that Comptroller and Auditor General of India has audit jurisdiction over anybody or authority which has any relation to administration revenues and expenditure and resistance by some like city development bodies, DISCOMs and metro corporations will wither away.

Sharma said, “We plan to audit certain problems related to the effect of note ban, largely its impact on tax revenues.”
The administration had banned Rs 500 Rs 1000 notes from November 8 and announced a new tax amnesty scheme for those holding scrapped notes.

The audit may look into outflow on printing of new notes, the Central bank dividend payout and banking transaction data.
The accountant has also conveyed to the administration its stand on the recent move of the GST Council to delete section 65 of the preliminary draft that authorised to audit GST.

“Our obligation includes Goods and Service taxes just like the earlier taxation regimes were covered. Work was already started on reforming of our revenue audit arrangements to meet the challenges when GST is introduced.

He also stated that “It comprises the problems of capacity building, data access, and analysis, developing end-to-end IT solutions, reorientation of audit methodology and techniques.”

He said the executive, legislature, judiciary and audit have clearly determined the roles and responsibilities. “The framers of our Constitution were conscious about of the concept of checks and balances and hence you find the mention of Judiciary and CAG in the fifth part of the Constitution along with legislature and executive,” he said.

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