Audit by CAG
DINESH SATIJA
(Querist) 17 October 2018
This query is : Resolved
CAN A SOCIETY WHICH HAS BEEN EXEMPTED FROM THE PAYMENT OF INCOME TAX AND SERVICE TAX AS WELL BE AUDITED BY CAG. THE TOTAL AMOUNT SAVED BY THE SOCIETY ON ACCOUNT OF INCOME TAX AND SERVICE TAX PER YEAR IS AROUND INR 150 CR.
Isaac Gabriel
(Expert) 17 October 2018
Any society getting aid or finance from the Exchequer is subject to Aduit by CAG
Dr J C Vashista
(Expert) 18 October 2018
What type of this society exist/functioning/ working stated to have been exempted from IT/ ST ?
Even if the society is not getting any aid/ finance from exchequer accounts are liable to be audited.
DINESH SATIJA
(Querist) 18 October 2018
THIS IS ABOUT AIR FORCE GROUP INSURANCE SOCIETY. THE SOCIETY WAS CREATED AFTER OBTAINING SANCTION OF THE PRESIDENT OF INDIA. EVERY UNIFORMED PERSONNEL OF THE INDIAN AIR FORCE IS COMPULSORILY INSURED WITH THIS SOCIETY. FOUR OFFICERS FROM THE INDIAN AIR FORCE FORM THE MANAGEMENT OF THIS SOCIETY. THESE OFFICERS COME ON DEPUTATION TO THIS SOCIETY. THIS SOCIETY IS EXEMPTED FROM THE PAYMENT OF INCOME TAX AND SERVICE TAX AS WELL (150 CRS PER YEAR). THIS SOCIETY IS NOT GETTING ANY MONEY AS GRANT FROM THE GOVERNMENT, DOES IT COME UNDER THE PURVIEW OF CAG, IF ANY AUTHORITIES/ACTS CAN BE CITED IT WILL BE GREAT HELP. REGARDS
Guest
(Expert) 18 October 2018
Mr. Dinesh Satija,
You have failed to give the real status of the society, whether the society was opened by individuals of some Government department. Apparently, a society created by private persons having no authority of any Government department, can't compel any Government Officer to compulsorily get insured through the private society.
The question arises, if this is a creation of any Government department, in what capacity you have asked this question? Further, you must have been aware about the Government Rules for such type of societies, if created by a Government department.
Can you please make it clear, in what capacity and position of the Government department or the society, you have asked the question?
DINESH SATIJA
(Querist) 23 October 2018
Dhingra sir i really appreciate the time takren out to response to my query so meticulously.The society was sanctioned by the president of india to be run departmentally as a self sustained scheme umder the aegis of the aoa branch of the indian air force. Initially it was not mandatory for the air warriors to become the members of this society later on an air force instruction was issued making it compoulsory for the air warriors to become members of this society. Now the insurance contribution of all the members iautomatically deducted from their pay and transferred to this society by air force central accounts office. Four serving officets of the indian air force are always in deputation to this society as the management of this society. Any further requirement is welcome. Regards Dinesh Satija
