Audit Reports
Tamil Nadu
Report No. 3 of 2011 - Financial Audit on Revenue Receipts of Government of Tamilnadu
Overview
The Report contains 28 paragraphs including three performance audits relating to non/short levy of taxes, interest, penalty, etc., involving RS 742 crore. The total receipts of the State during 2010-11 were RS 70,187.62 crore, comprising tax revenue of RS 47,782.17 crore and non-tax revenue of RS 4,651.45 crore. RS 10,913.98 crore was received from the Government of India as State's share of divisible union taxes and RS 6,840.02 crore as grants-in-aid. The revenue raised by the State Government in 2010-11 was 75 per cent of the total revenue receipts as compared to 74 per cent in 2009-10. Sales tax (RS 28,614.23 crore) formed a major portion (60 per cent) of the tax revenue of the State. Interest receipts, dividends and profits (RS 1,689.78 crore) accounted for 36 per cent of the non-tax revenue.
Test check of the records relating to commercial taxes, land revenue, motor vehicles tax, stamp duty and registration fees, electricity duty and mines and minerals during the year 2010-11 revealed underassessments, short levy, loss of revenue and other observations amounting to RS 1,173.24 crore in 2,150 cases. A performance audit on "Utilisation of declaration forms in inter-state trade" revealed the following: Delay in uploading details regarding utilisation of declaration forms in TINXSYS hampered the effective monitoring of inter state trade.
There was incorrect exemption on consignment sales of cardamom involving tax of RS 33.14 lakh. There was absence of mechanism to monitor the implementation of extract verification reports of ISIC. There was evasion of tax due to misuse of declaration forms to an extent of RS 1.85 crore. Incorrect allowance of concessional rate of tax resulted in short levy of tax amounting to RS 2.10 crore. 8,322 'C' and 1,060 'F' declaration forms were issued to 792 dealers after the cancellation of the registration certificates/stoppage of business.