Report No. 6 of 2011 - Performance Audit on Revenue Receipts of Government of Rajasthan

Date on which Report Tabled:
Thu 11 Oct, 2012
Date of sending the report to Government:
Government Type:
Sector Taxes and Duties,Finance


The stamp duty constituted an average of 9.96 per cent of total tax revenue of the State during the period 2006-07 to 2010-11. Though the stamp receipts grew from RS 1,293.68 crore in 2006-07 to RS 1,941.07 crore in 2010-11. Rajasthan State has an ample scope of further increase in stamp duty collections on account of conveyance, developer agreements, mortgages, power of attorneys etc. of immovable properties and cross linking of transactions in public offices which are dutiable under the Stamp Duty provisions.

We conducted a Performance Audit on "Levy and Collection of Stamp Duty and Registration Fees" for the period 2006-07 to 2010-11 in order to ascertain whether the provisions of the Act/Rules and departmental instructions were adequate and enforced accurately to safeguard revenue of the State. We also ascertained whether the registering authorities discharged their functions in levying and collection of stamp duty in accordance with the prescribed rules and procedures.

We analysed internal control mechanism to know whether it was effective and sufficient to safeguard realisation of stamp duty and registration fees on the instruments executed, and in the receipt and accountal of stamps paper. We adopted statistical sample techniques and sample documents selected as per standard sampling method for the period 2006-07 to 2009-10 and test audit of records for the year 2009-10 to 2010-11. Our test audit of records and scrutiny of these sample documents revealed irregularities in levy of stamp duty and registration fees due to undervaluation of properties, misclassification of instruments, incorrect application of rates etc. aggregating RS 9.04 crore. Besides, failure of public offices to recover proper Stamp Duty (SD) and Registration Fees (RF) resulted in non-realisation of revenue amounting to RS 20.74 crore.

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