This Report is in two parts. Part-A covers audit findings of Revenue Sector comprising one Performance Audit on ‘Imposition and Collection of Taxes on Vehicles’ and eight paragraphs on ‘Preparedness for transition to Goods and Services Tax’, short levy and loss of tax revenue due to concealment, suppression and misclassification of sales turnover, incorrect allowance of input tax credit, incorrect application of rates and short levy of stamp duty/ registration fee, involving Rs.186.62 crore. Part-B covers audit findings of Public Sector Undertakings comprising one Performance Audit on ‘Working of Jammu and Kashmir Bank Limited’, and seven paragraphs relating to deficiencies in procurement of medicines and equipment by Jammu and Kashmir Medical Supplies Corporation Limited, loss/ blocking of funds, unproductive/ unfruitful/ avoidable expenditure and low capacity utilisation of cement grinding-cum-packing unit involving Rs.3,323.81 crore.
During the year 2017-18, the overall receipts of the State increased by 15.56 per cent over the previous year. The revenue raised by the State Government (Rs.13,898.74 crore) was 29 per cent of the total revenue receipts against 28 per cent in the preceding year. The balance 71 per cent of the receipts during 2017-18 was from the Government of India (GoI) of which 65.59 per cent came in the form of grants-in-aid. The grants-in-aid from GoI constituted 46.79 per cent of the total receipts of the State. Test-check of the records of 94 units out of 402 auditable units of Commercial Taxes (Sales tax/ Value Added Tax), State Excise, Motor Vehicles and Law Departments conducted during the year 2017-18 showed under assessment/ Evasion of tax/ Irregular allowance of Input Tax Credit, etc. aggregating Rs.377.77 crore in 33,237 cases. During the year, the departments concerned accepted under assessment and other deficiencies of Rs.2.22 crore involved in 97 cases, which were pointed out in audit during 2017-18 and earlier years. The departments collected/ recovered Rs.53.38 lakh in 19 cases pertaining to audit findings of previous years.
As on 31 March 2018, there were 33 PSUs, including three Statutory Corporations and 30 Government Companies (including nine inactive Government Companies) under the audit jurisdiction of the Comptroller and Auditor General of India (C&AG). Of these, one PSU i.e. Jammu and Kashmir Bank Limited is listed (July 1998) on the stock exchange. Of the total paid-up equity of the Bank, 59.23 per cent is held by the State Government and remaining 40.77 per cent is held by Foreign Institutional Investors, Resident Individuals and others. The working PSUs registered an annual turnover of Rs.8,571.68 crore as per their latest finalised accounts, as of 30 September 2018. This turnover was equal to 6.08 per cent of Gross State Domestic Product (GSDP) of Rs.1,40,887 crore for 2017-18. The working PSUs earned an aggregate profit of Rs.198.15 crore, as per their latest finalised accounts.