Coca-Cola, Others Tax Under-Assessed by Rs 1,100 Crore
New Delhi, May 14: 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 today.
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
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.
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