The CAG report on power utilities under the Delhi government held that Indraprastha Power Generation Company Limited’s failure to avail MAT (Minimum Alternate Tax) credit while computing self-assessment tax resulted in a blockade of funds worth Rs 8.1 crore and consequent interest burden of Rs. 95 lakh.
Similarly, Delhi Power Company Limited incurred an additional liability of Rs. 46 lakh on account of interest due to late deposit of MAT of Rs 3.54 crore, observed the auditor. Also, the Delhi Transco Limited's delay in payment of licence fee resulted in creation of avoidable liability of Rs. 3.2 crore on account of interest.
“Failure in assessing and discharging advance tax liability resulted in avoidable expenditure of Rs. 8.62 crore on account of interest,” the report stated.
