Para 3.23.8 — MSO (Audit)
Original Rule Text
3.23.8 The net proceeds of other taxes and duties levied under Articles 269 and 272 of the Constitution will be calculated with reference to the actual gross receipts realised during a financial year reduced by refunds and cost of collection as is determined by the Comptroller and Auditor General either on an actual basis or on a proportionate basis. In the case of duties levied under Article 269 of the Constitution, the proceeds attributable to the Union Territories will also be taken in reduction of the amount worked out as above. If the actual figures cannot be ascertained easily, the extent of these proceeds will, in each case, be determined by the Comptroller and Auditor General on a percentage basis and, if equitable, the percentage to be deducted as being attributable to the Union Territories will be the same as in the case of Taxes on Income as laid down in the last sentence of the second assumption in the preceding paragraph.
What This Means
For taxes and duties under Articles 269 and 272 of the Constitution, the net proceeds are calculated by taking gross receipts, deducting refunds and the cost of collection (determined by the CAG on actual or proportionate basis), and further deducting proceeds attributable to Union Territories for Article 269 duties. If actual UT figures are not easily available, the CAG determines them on a percentage basis, which may be the same percentage used for Income Tax.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Net proceeds = Gross receipts minus refunds minus cost of collection
- 2Cost of collection is determined by the CAG on actual or proportionate basis
- 3For Article 269 duties, UT-attributable proceeds are also deducted
- 4If actual UT figures are unavailable, a percentage basis is used
- 5The UT percentage may mirror the Income Tax percentage for equity
- 6The CAG has discretion in choosing the calculation methodology
Practical Example
For estate duty collections under Article 269, the CAG finds gross receipts of Rs 100 crore and refunds of Rs 5 crore. Collection costs are determined on a proportionate basis at Rs 3 crore. Since actual UT figures are unavailable, the CAG applies the same 2% UT deduction used for Income Tax, removing Rs 1.84 crore. The certified net proceeds for distribution to states are thus Rs 90.16 crore.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
What is the difference between Articles 269 and 272?▼
Why does the CAG have discretion on the calculation method?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.