RIL, Tata Motors, others under-assessed: CAG
Reliance Industries, Tata Group, Bank of Baroda and Coca Cola are among the corporates that escaped over Rs 1,100 crore in taxes due to under-assessment by tax authorities, says CAG.business Updated: May 14, 2007 22:20 IST
Reliance Industries, Tata Group, Bank of Baroda and Coca Cola are among the corporates that escaped over Rs 1,100 crore in taxes due to under-assessment by tax authorities, the country's top auditor CAG said on Monday.
RIL was under-assessed, resulting in lower tax collection of Rs 376.17 crore for assessment year 2002-03, the Comptroller and Auditor General of India said in its latest audit.
"The fact that the brought forward loss of Rs 1,364.38 crore of Reliance Petroleum had been fully set off in the revised assessment order of July 2004 was not taken into consideration while making the assessment of RIL in March 2005. The mistake resulted in under-assessment of income... with short levy of tax of Rs 376.17 crore," CAG said.
In case of Tata Motors, the omission resulted in a short levy of tax by Rs 261.13 crore, the report said, adding the Department has accepted the mistake and took remedial action.
Mistakes in the computation of taxes in case of Tata Steel had a tax impact of Rs 69.64 crore, it said.
The under-assessment in the case of GTL Ltd, earlier known as Global Telecom Ltd, was detected as Rs 104.84 crore, while for Jindal Steel and Power Ltd it was Rs 19.90 crore.
In case of Bank of Baroda, the short levy was detected as Rs 189.19 crore. However, the department reported that it had taken the remedial action.
For Hindustan Coca Cola Beverages Pvt Ltd, the bottling and distribution arm of Coca Cola India, mistakes by tax authorities resulted in a revenue loss of Rs 46.94 crore.
The other companies which were under-assessed included Asia Net Communications, Polaris Software and Indo National Ltd, the report said.