Audit Reports

Indirect Tax

Overview

This Report has 178 audit observations on Service Tax, having financial implication of RS 772.08 crore. The Ministry/department had, till December 2014, accepted audit observations involving revenue of RS 477.22 crore and reported recovery of RS 130.29 crore.

Indirect tax revenue as a percentage of Gross domestic product has increased from 3.79 per cent in FY 10 to 4.41 per cent in FY 14. During the same period, Service Tax revenues as a percentage of GDP rose from 0.9 per cent to 1.36 per cent.

Measures initiated by the department to improve recovery of arrears have not made any impact. Arrear collection in FY 14 has fallen drastically to 3.12 per cent compared to 11.40 per cent in FY 13. Over 89 per cent returns marked by ACES for review and correction were pending corrective action.

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• Report No. 4 of 2015 - Full Report
  _{(0.81 MB) Download}

• Index
  _{(0.22 MB) Download}
• Preface
  _{(0.04 MB) Download}
• Executive Summary
  _{(0.07 MB) Download}
• Chapter 1 - Introduction
  _{(0.30 MB) Download}
• Chapter 2 - Service Tax liability in Insurance Sector
  _{(0.20 MB) Download}
• Chapter 3 - Service Tax liability in Port Sector
  _{(0.13 MB) Download}
• Chapter 4 - Service Tax liability on Mandap Keeper’s Services
  _{(0.14 MB) Download}
• Chapter 5 - Scrutiny of Service Tax Returns
  _{(0.13 MB) Download}
• Chapter 6 - Non-compliance with rules and Regulations
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• Chapter 7 - Effectiveness of internal Controls
  _{(0.17 MB) Download}
• Appendices
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• Glossary
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