NEW DELHI: Nearly 95 per cent of real estate companies registered with the Registrar of Companies (RoC) either do not have any permanent account number (PAN) or the RoC did not have any information in this regard. This is what the Comptroller and Auditor General (CAG) has found in its audit of real companies in 12 states.
“ROCs did not have information about PAN in respect of 51,670 (95 per cent) of a total of 54,578 companies for which data was made available to Audit,” the CAG report said. “It was difficult for Audit to ascertain from the information obtained from ROCs whether these companies were in the tax net of the ITD (income tax department) or not except in case of Andhra Pradesh & Telangana where Audit could identify PAN in respect of 147 of these companies.”
CAG forwarded the information received from ROCs without PAN data to ITD to ascertain whether these companies were filing income tax returns (ITRs) but no reply was received.
All corporate assessees are compulsorily required to file their ITRs with ITD irrespective of income or loss.
A number of companies have not been filing ITRs. “Audit attempted to ascertain whether the companies in ROC data with PAN were regular in filing their ITRs. In respect of 840 companies with PAN coming under selected assessment charges, we noticed that 159 companies (19 per cent) were not filing their ITRs,” the report said.
The CAG concluded that there was no mechanism with ITD to ensure that all the registered companies had PAN and were filing their ITRs regularly
The CAG has recommended that the CBDT, Ministry of Finance and Ministry of Corporate Affairs should have inter-ministerial arrangement where there is an interface between the ITD and ROC so that when a company is registered with ROC, the application for PAN is submitted automatically with the ITD. When PAN is issued to the newly incorporated company, it will automatically be sent to ROC systems for updation.
The CAG also recommended that the companies should be compulsorily required to submit a copy of acknowledgement of ITR while furnishing their annual reports in Form MGT-7.
Source: Economic Times