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Compliance Performance
Tamil Nadu

Report No. 2 of 2014 – Performance and Compliance Audit on Revenue Sector of Government of Tamilnadu

Date on which Report Tabled:
Tue 12 Aug, 2014
Date of sending the report to Government:
Government Type:
State
Sector Taxes and Duties

Overview

The Report contains 18 paragraphs including two Performance Audits relating to non/short levy of taxes, royalty, interest, penalty, etc., involving RS 171.25 crore. The total revenue receipts of the State during 2012-13 were RS 98,827.70 crore, comprising tax revenue of RS 71,254.27 crore and non-tax revenue of RS 6,554.26 crore. RS 14,519.69 crore was received from the Government of India as State's share of divisible Union taxes and RS 6,499.48 crore as grants-in-aid. The revenue raised by the State Government in 2012-13 was 79 per cent of the total revenue receipts as compared to 77 per cent in 2011-12. Sales tax (RS 44,041.13 crore) formed a major portion (62 per cent) of the tax revenue of the State. Interest receipts, dividends and profits (RS 2,053.88 crore) accounted for 31 per cent of the non-tax revenue.

Test check of records relating to commercial taxes, state excise, motor vehicles tax, stamp duty and registration fees, electricity tax and mines and minerals during the year 2012-13 revealed underassessments, short levy, loss of revenue and other observations amounting to RS 1,635.97 crore in 1,828 cases. "Cross verification of import data obtained from the Customs Department" revealed the following: The existing system in the Commercial Taxes Department to ensure proper accounting and disclosure of imports by dealers is deficient in identifying tax evaders, detecting suppression of turnover and consequent evasion of tax.

Sixty six dealers of 23 assessment circles who imported goods worth RS 904.67 crore during the years 2008-09 to 2011-12 did not file returns with the Commercial Taxes Department. The tax and penalty leviable on the turnover not disclosed by the dealers worked out to RS 48.91 crore and RS 73.37 crore respectively. Sixteen dealers of 12 assessment circles who imported goods worth RS 89.49 crore during the years 2008-09 to 2011-12 did not disclose any turnover of purchase and sales in the returns filed by them with the Commercial Taxes Department. The tax and penalty leviable on the turnover which was not disclosed by the dealers worked out to RS 6.42 crore and RS 9.63 crore.

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  • Report No. 2 of 2014 – Performance and Compliance Audit on Revenue Sector of Government of Tamilnadu

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