This Report is in two parts. Part-A covers audit findings of Revenue Sector comprising one Performance Audit on ‘Levy, Assessment and Collection of Tax on Services’, one follow-up Audit on ‘Assessment and Levy of Stamp Duty and Registration Fee’ of Audit Report 2010-11 and nine paragraphs on short levy of tax due to concealment of purchases, incorrect application of tax rates, irregular allowance of input tax credit, misclassification of turnover, short levy of stamp duty and registration fee, inadmissible reduction of stamp duty and misappropriation of Government money, involving Rs.224.68 crore. Part-B covers audit findings of Public Sector Undertakings comprising one Performance Audit on ‘Working of Jammu and Kashmir Projects Construction Corporation Limited’, and six paragraphs relating to doubtful recovery of loans, undue favour to contractor and non-recovery of penalty/ performance guarantee involving Rs.411.92 crore.
The total revenue receipts of the State Government for the year 2016-17 were Rs.41,980.72 crore as compared to Rs.35,780.60 crore during the year 2015-16 i.e. an increase of Rs.6,200.12 crore. Out of this, 28 per cent of the total receipt was raised through tax revenue (Rs.7,819.13 crore) and non-tax revenue (Rs.4,074.44 crore) and the balance 72 per cent was received from the Government of India as State’s share of divisible Union taxes and duties (Rs.9,488.60 crore) and Grants-in-aid (Rs.20,598.55 crore). Test-check of the records of 61 units out of total 261 auditable units of Sales Tax/ Value Added Tax, State Excise, Motor Vehicles and Law Departments conducted during the year 2016-17 showed under assessment/ short levy/ loss of revenue aggregating Rs.316.16 crore in 763 cases. During the year, the Departments concerned accepted under assessment and other deficiencies of Rs.5.88 crore involved in 104 cases which were pointed out in audit during 2016-17 and earlier years. The Departments collected Rs.57.74 lakh in 25 cases pertaining to audit findings of previous years as well as of the year 2016-17.
The State of Jammu and Kashmir had 30 working PSUs (27 Companies and three Statutory Corporations) and three non-working PSUs. The working PSUs recorded a turnover of Rs.8,357.91 crore as per their finalised accounts as of 30 September 2017. As on 31 March 2017, the investment (paid up capital, free reserves and long term loans) in 33 State PSUs and Statutory Corporations was Rs.7,426.67 crore. Power sector accounted for 43.47 per cent (Rs.3,228.68 crore) of the total investment as on 31 March 2017. The total investment consisted of 21.70 per cent towards paid up capital and 78.30 per cent as long-term loans. The investment has grown by 45.08 per cent from Rs.5,119.04 crore in 2012-13 to Rs.7,426.67 crore in 2016-17.