Compliance Performance

Report No. 4 of 2014 - Financial Audit on Revenue Sector of Government of Rajasthan

Date on which Report Tabled:
Fri 18 Jul, 2014
Date of sending the report to Government:
Government Type:
Sector Taxes and Duties,Finance


This Report contains 39 paragraphs involving Rs. 586.49 crore, including two Performance Audits on 'Recovery of arrears in Commercial Taxes Department' and 'Encroachment on Government Land'. The total revenue receipts of the Government of Rajasthan during 2012-13 were RS 66,913.01 crore as against RS 57,010.76 crore for the year 2011-12. The revenue raised by the Government amounted to RS 42,636.24 crore comprising tax revenue of RS 30,502.65 crore and non-tax revenue of RS 12,133.59 crore. The receipts from the Government of India were RS 24,276.77 crore (State's share of divisible Union taxes of RS 17,102.85 crore and grants-in-aid of RS 7,173.92 crore). 2,882 Inspection Reports (IRs) containing 9,489 paragraphs involving RS 7,731.42 crore remained outstanding at the end of June 2013. Of these, first replies to 80 IRs issued upto December 2012, were not received till 30 June 2013.

Test check during 2012-13 revealed underassessment, non levy/short levy of taxes and loss of revenue, failure to raise demands and other irregularities aggregating to RS 2,286.17 crore in 37,959 cases. The concerned Departments accepted underassessments and other deficiencies of RS 598.39 crore involved in 23,519 cases, of which 11,973 cases involving RS 217.42 crore were pointed out in audit during the year 2012-13 and the rest in earlier years. The Departments recovered RS 73.07 crore in 5,876 cases at the instance of audit during the year 2012-13.

A Performance Audit of 'Recovery of arrears in Commercial Taxes Department' revealed the following: The tax arrears increased from RS 2,996.96 crore to RS 4,838.04 crore during the period 2007-08 to 2011-12. No time frame was prescribed in the RVAT Act, 2003 or RVAT Rules, 2006 or by the Department to ensure initiation of recovery proceedings. Arrears of RS 69.01 lakh in four cases were not recovered due to failure of auctions of property. Test check of 259 cases of ex-parte assessments pertaining to the period 1977-78 to 2009-10 revealed non-recovery of demand of RS 49.44 crore and interest of RS 37.81 crore.

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