Compliance Performance

Report No.2 of 2013 - Financial Audit on Revenue Sector of Government of Rajasthan

Date on which Report Tabled:
Tue 27 Aug, 2013
Date of sending the report to Government:
Government Type:
Sector Taxes and Duties,Finance


This Report contains 43 paragraphs involving RS 763.52 crore, including a Performance Audit on 'Assessment and Collection of VAT CST' relating to non/short levy of tax, interest, penalty etc. The total revenue receipts of the Government of Rajasthan during 2011-12 were RS 57,010.76 crore as against RS 45,928.20 crore for the year 2010-11. The revenue raised by the Government amounted to RS 34,552.15 crore comprising tax revenue of RS 25,377.05 crore and non-tax revenue of RS9,175.10 crore. The receipts from the Government of India were RS 22,458.61 crore (State's share of divisible Union taxes: RS 14,977.05 crore and grants-in-aid: RS 7,481.56 crore).

2,628 Inspection Reports (IRs) containing 8,260 paragraphs involving RS 5,958.95 crore remained outstanding at the end of June 2012. Out of these, 922 IRs containing 1,829 paragraphs involving RS 438.63 crore were outstanding for more than five years. Test-check during 2011-12 revealed underassessment, non/short levy of taxes and loss of revenue, failure to raise demands and other irregularities aggregating to RS 3,119.98 crore in 47,716 cases. The concerned Departments accepted underassessment and other deficiencies of RS 1,110.74 crore involved in 17,146 cases, of which 3,896 cases involving RS 1,013.90 crore were pointed out in audit during the year 2011-12 and the rest in earlier years. The Departments recovered RS 44.26 crore in 8,789 cases at the instance of audit during the year 2011-12.

A Performance Audit of 'Assessment and Collection of VAT and CST' revealed the following: Test check of the assessment records of 24 dealers revealed that the AAs had not verified the balance sheets, Audit Reports and other related documents attached with the VAT Re turns filed by the dealers. This resulted in non/short levy of tax of RS 8.67 crore. Misclassification of sale of goods as works contract in four cases and incorrect levy of exemption fee in two cases resulted in short realisation of revenue of RS 1.13 crore.

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