Para 1.1.14 — MSO (Audit)
Original Rule Text
1.1.14 Under Article 279 (1) of the Constitution, the Comptroller and Auditor General has to ascertain and certify the net proceeds of any tax or duty mentioned in Chapter I of Part XII of the Constitution or of any part of such tax or duty, in or attributable to any area.
What This Means
Under Article 279(1) of the Constitution, the CAG has a specific duty to ascertain and certify the net proceeds of certain taxes or duties mentioned in the Constitution. This certification determines how tax revenue is distributed between the Centre and States, making it critical for federal fiscal relations.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Article 279(1) assigns CAG the duty of certifying net proceeds of specified taxes
- 2Covers taxes mentioned in Chapter I of Part XII of the Constitution
- 3CAG certifies net proceeds attributable to any particular area
- 4This certification is critical for Centre-State revenue distribution
Practical Example
When the Finance Commission recommends that 41% of central tax revenue be devolved to states, the CAG's certification of net tax proceeds determines the exact rupee amount each state receives. If the CAG certifies that net income tax proceeds are Rs 10 lakh crore, the states' share would be Rs 4.1 lakh crore.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
Why does the CAG certify tax proceeds?▼
What are 'net proceeds' of a tax?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.