Uttar Pradesh

Report of 2011 - Financial Audit on Revenue of Government of Uttar Pradesh

Date on which Report Tabled:
Wed 30 May, 2012
Date of sending the report to Government:
Government Type:
Sector Taxes and Duties


This Report contains 35 paragraphs including two reviews relating to non/short levy of tax, penalty, interest etc. involving RS 100.50 crore. The total receipts of the Government of Uttar Pradesh for the year 2010-11 were RS 1,11,183.76 crore against RS 96,420.95 crore during 2009-10. The revenue raised by the State Government amounted to RS 52,531.21 crore comprising tax revenue of RS 41,355 crore and non-tax revenue of RS 11,176.21 crore. The receipts from the Government of India were RS 58,652.55 crore (State's share of divisible Union taxes: RS 43,218.90 crore and grants-in-aid: RS 15,433.65 crore). Thus, the State Government could raise only 47 per cent of the total revenue. Taxes on sales, trade, etc. (RS 24,836.52 crore) and miscellaneous general services (RS 5,120.67 crore) were the major source of tax and non-tax revenue respectively during the year 2010-11.

Inspection reports numbering 10,349 issued upto 31 December 2010 containing 25,501 audit observations with money value of RS 4,445.39 crore had not been settled upto June 2011. Test check of the records of 1,682 units of Commercial Tax, State excise, Motor vehicles tax, Stamp duty and Registration fee, Forest and other departmental offices conducted during the year 2010-11 revealed under assessments/short levy/loss of revenue aggregating RS 682.45 crore in 4,425 cases. During the course of the year, the departments concerned accepted under assessments and other deficiencies of RS 10.11 crore involved in 913 cases of which 42 cases involving RS 10.86 lakh were pointed out in audit during 2010-11 and the rest in the earlier years. The departments collected RS nine crore in 625 cases during 2010-11.

A Performance Audit on "Utilisation of declaration forms in inter State trade and commerce" revealed that: Due to absence of a database of exemptions and concessions of tax granted in the inter-state trade and commerce, revenue foregone during the assessment years 2006-07 to 2010-11 is not quantifiable. Due to inadequate systems in place for safe custody, issue of declaration forms and non-verification of stock of forms, chances of misuse of the forms could not be ruled out.

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