CAG spots avoidable loss of Rs 1,394 crore to Jharkhand’s revenue

The state government on its own could raise only 43 percent of its total revenue.

GN Bureau | March 7, 2017


#Comptroller and Auditor General   #revenue loss   #Jharkhand   #CAG   #audit   #tax  


 
An audit of Jharkhand’s revenue sector carried out by the Comptroller and Auditor General (CAG) relating to taxes showed it were either not or short levied and loss of tax/duty Rs 11,676.35 crore. Out of this Rs 10,282.30 crore is recoverable and “remaining amount of Rs 1,394.05 crore is avoidable loss to the government”.
 
Audit observations of Rs 11,672.52 crore including avoidable loss of Rs 1,394.05 crore have been accepted by the government/departments, said the CAG report.
 
The total receipts of the government of Jharkhand for the year 2015-16 were Rs 40,638.35 crore against Rs 31,564.56 crore during 2014-15. The revenue raised by the state government amounted to Rs 17,331.96 crore comprising tax revenue of Rs 11,478.95 crore and non-tax revenue of Rs 5,853.01 crore. The receipts from the government of India were Rs 23,306.39 crore comprising state’s share of divisible Union taxes: Rs 15,968.75 crore and grants-in-aid: Rs 7,337.64 crore. Thus, the state government on its own could raise only 43 percent of its total revenue.
 
The appreciable increase in total receipts in 2015-16 over 2014-15 of 28.75 percent was largely on account of a 68.32 percent increase in state’s share of divisible union taxes followed by a 35 percent increase in non-tax revenue. Taxes on Sales, Trade etc. (Rs 8,998.95 crore) and Non-ferrous Mining and Metallurgical Industries (Rs 4,384.43 crore) were the major sources of tax and non-tax revenue respectively during 2015-16.
 
 
The CAG report said that the arrears of revenue as on March 31, 2016 in respect of taxes on Sales, Trade etc., Taxes on Vehicles and State Excise amounted to Rs 3,237.28 crore, of which Rs 2,608.99 crore was outstanding for more than five years. Out of the above outstanding, Rs 313.48 crore was certified for recovery as arrears of land revenue and Rs 1,343.84 crore was held up due to proceedings in courts and other legal processes whereas specific action taken in respect of the remaining Rs 1,579.96 crore was not intimated by the concerned departments.
 
The number of Inspection Reports (IRs) and audit observations issued upto the year 2015-16, but not settled by June 2016, stood at 740 and 7,192 respectively involving Rs 8,075 crore.
 
During the year, test check of the records of 123 departmental units relating to Taxes on Sales, Trade etc., State Excise, Taxes on Vehicles, Land Revenue, Stamps and Registration Fees, Taxes and Duties on Electricity and Mining Receipts was conducted. It revealed failure to or short levy and loss of tax/duty of Rs 12,737.35 crore in 45,954 cases. The concerned departments accepted under-assessment and other deficiencies of Rs 12,120.88 crore involved in 40,355 cases and effected recovery of Rs 362.23 crore in 804 cases in 2015-16.
 
 
Audit of Implementation of mechanism of cross-verification of VAT/CST transactions in Commercial Taxes Department revealed the following: There was tax evasion of Rs 37.65 crore by 277 unregistered dealers due to inadequate implementation of mechanism for cross-verification of transactions in the Department to identify the dealers who were liable for registration.
 
Cross-verification of intra-departmental data revealed suppression of purchase/sales turnover by 42 dealers and consequent under-assessment of tax and penalty of Rs 51.17 crore.
 
Cross-verification of data obtained from departments of Government of India/PSUs with the returns filed by 64 dealers registered in Commercial Taxes Department revealed suppression of purchase/sale turnover and consequent under-assessment of tax of Rs 1,026.36 crore.
 
Irregularities in determination of sales/purchase turnover of 36 dealers registered in 14 Commercial Taxes Circles by the assessing authorities resulted in under-assessment of tax and penalty of Rs 294.32 crore during 2009-10 to 2012-13.
 
In 12 Commercial Taxes Circles, interest of Rs 173.06 crore was not levied by the assessing authorities on the claims on account of exemptions not supported by documents in case of 34 assessees during the period between 2010-11 and 2012-13.
 
Read: Report of the Comptroller and Auditor General of India on revenue sector for the year ended March 31, 2016 - Government of Jharkhand
 

Comments

 

Other News

Report of India’s G20 Task Force on Digital Public Infrastructure released

The final ‘Report of India’s G20 Task Force on Digital Public Infrastructure’ by ‘India’s G20 Task Force on Digital Public Infrastructure for Economic Transformation, Financial Inclusion and Development’ was released in New Delhi on Monday. The Task Force was led by the

How the Great War of Mahabharata was actually a world war

Mahabharata: A World War By Gaurang Damani Sanganak Prakashan, 317 pages, Rs 300 Gaurang Damani, a Mumbai-based el

Budget expectations, from job creation to tax reforms…

With the return of the NDA to power in the recently concluded Lok Sabha elections, all eyes are now on finance minister Nirmala Sitharaman’s full budget for the FY 2024-25. The interim budget presented in February was a typical vote-on-accounts, allowing the outgoing government to manage expenses in

How to transform rural landscapes, design 5G intelligent villages

Futuristic technologies such as 5G are already here. While urban users are reaping their benefits, these technologies also have a potential to transform rural areas. How to unleash that potential is the question. That was the focus of a workshop – “Transforming Rural Landscape:

PM Modi visits Rosatom Pavilion at VDNKh in Moscow

Prime minister Narendra Modi, accompanied by president Vladimir Putin, visited the All Russian Exhibition Centre, VDNKh, in Moscow Tuesday. The two leaders toured the Rosatom Pavilion at VDNKh. The Rosatom pavilion, inaugurated in November 2023, is one of the largest exhibitions on the histo

Let us pledge to do what we can for environment: President

President Droupadi Murmu on Monday morning spent some time at the sea beach of the holy city of Puri, a day after participating in the annual Rath Yatra. Later she penned her thoughts about the experience of being in close commune with nature. In a message posted on X, she said:

Visionary Talk: Amitabh Gupta, Pune Police Commissioner with Kailashnath Adhikari, MD, Governance Now


Archives

Current Issue

Opinion

Facebook Twitter Google Plus Linkedin Subscribe Newsletter

Twitter