The consequences for the Chandigarh Transport Undertaking (CTU) officials’ failure to collect service tax from passengers of air-conditioned (AC) buses starting on the specified dates will be severe.
The Comptroller and Auditor General (CAG) has recommended action against CTU officials who failed to implement the relevant tax from the prescribed dates and as a result failed to collect the service tax/GST from passengers of AC buses, resulting in an avoidable payment of Rs 5.89 crore from the government exchequer and burden on taxes on the general public without any corresponding service being utilised by them. This recommendation was made in the CAG’s most recent report, which was presented in Parliament in December.
Unnecessary burden on passengers: CAG
The CAG notes that the department incorrectly increased the prices of all buses, including non-AC buses, in an effort to recoup the tax that had previously been paid from the Consolidated Fund of India. As a result, the department levied taxes even on people who had not taken AC buses, and it also collected taxes from people other than those who had used the service in the past.
