Kathmandu. Gas refilling companies have evaded rs 484.71 million in taxes by submitting fake details on transportation fare and insurance expenses while purchasing LP gas (cooking gas) from The Indian Oil Corporation( IOC).
According to the Office of the Auditor General, tax of Rs 484.71 million has been evaded from six customs offices including Birgunj, Biratnagar and Bhairahawa.
The Auditor General has directed the Department of Customs to recover the tax exemption amount as the actual amount of rent insurance should be confirmed as per the records of Nepal Oil Corporation and the industry pays regarding the fare of gas transported in bullets from a distance from the customs point.
The Auditor General has opined that the Customs Department has given additional exemption in rent and insurance tax to LP gas importers in a manner contrary to the provisions of the Customs Act, 2064 BS. In its 62nd annual report, the Auditor General has written, “The Customs Department has issued a circular to fix 10 percent of the price of rent and insurance price in case of non-submission of rent and insurance bill from importers. Revenue collection has been affected as the Department has issued an additional circular regarding the rent and insurance of gas and petroleum products imported by the industry, which is transported in special type tankers from about 400 kilometers away from the Indian border, which is less than the actual fare and insurance cost. ’
According to Section 15 of the Customs Act, 2064 BS, those who fail to submit details of rent, insurance or other expenses while importing goods have to submit details of estimated expenses and on the basis of that, the goods can be examined and the actual bill can be submitted within 90 days and the amount of duty waived due to it can be adjusted.
