Comments
Irregular sales in the domestic market by 100 per cent Export Oriented Units (EOUs), incorrect Cenvat credit availment, and irregular levy of various taxes and duties has resulted in a revenue loss of ₹317 crore in 2013-14, the Government auditor has said.
The Comptroller and Auditor General of India’s report on performance of 100 per cent EOU scheme submitted in Parliament on Tuesday said the scheme has neither been able to attract entrepreneurs nor contribute to growth as envisaged while forgoing substantial duty.
Forgone revenueCustoms revenue forgone on EOU and related schemes between 2009-10 and 2013-14 is ₹32,932 crore.
The report recommended that the Commerce Ministry must initiate corrective measures to arrest decline with specific timelines and measurable outcomes.
The Ministry should institutionalise a system of regular internal audit of the EOU scheme and ensure that Annual Performance Reports are submitted on time and contain all relevant data not only for exports but also about duty foregone, the report added.
Number goes downThe total number of EOUs has gone down from 3109 in 2009-10 to 2608 in 2013-14, while the number of functional units has come down from 2279 to 2095 during the same period.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.