Para 3.23.5 — MSO (Audit)
Original Rule Text
3.23.5 As mentioned earlier in paragraph 1.1.14, it is the duty of the Comptroller and Auditor General under Article 279(1) of the Constitution to ascertain and certify for the purposes mentioned in certain provisions of Chapter 1 of Part XII of the Constitution the net proceeds in a financial year of any tax or duty or of any part of any tax or duty, in or attributable to any area.
What This Means
Under Article 279(1) of the Constitution, the CAG has the duty to ascertain and certify the net proceeds of any tax or duty (or any part thereof) for the purpose of revenue distribution between the Centre and states. This is a constitutional mandate that underpins the entire framework of fiscal federalism — ensuring that states receive their correct share of centrally collected taxes.
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) mandates the CAG to certify net proceeds of taxes and duties
- 2This covers any tax or duty or any part thereof
- 3Certification includes proceeds 'in or attributable to any area'
- 4The purpose is to support constitutional provisions on revenue distribution
- 5This is one of the CAG's most important constitutional responsibilities
Practical Example
At the end of each financial year, the CAG's office certifies the net proceeds of Income Tax, Union Excise Duties, and other shared taxes. For example, after certifying that the net proceeds of Income Tax for the year are Rs 8 lakh crore, the Finance Commission's recommended formula is applied to determine each state's share, ensuring Bihar, UP, and other states receive their constitutionally mandated portion.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
What does 'attributable to any area' mean?▼
Can the CAG's certification be challenged?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.