Audit Reports
Indirect Tax
Report No. 17 of 2013 - Compliance Audit on Indirect Taxes-Central Excise and Service Tax Union Government, Department of Revenue
Overview
This Report contains 239 audit observations pertaining to Central Excise duties and Service Tax, having a total revenue implication totalling RS 569.55 crore. The Ministry/department had, till May 2013, accepted audit observations involving revenue of RS 565.72 crore and reported recovery of RS 109.30 crore.
Indirect tax revenues as a percentage of Gross domestic product decreased from 5.24 per cent in FY03 to 4.38 per cent in FY12. During the same period, Central Excise revenues (PLA) as a percentage of GDP declined from 3.25 in FY03 to 1.61 in FY12 and Service Tax revenues as a percentage of GDP rose to 1.09 from 0.16.
Revenues foregone on account of Central Excise exemptions continued during FY12. Exemptions under section 5A(1) of the Central Excise Act amounted to RS 1,95,590 crore (RS 1,79,453 crore in general exemptions and RS 16,137 crore in area based exemptions) i.e. 135 per cent of the revenues from Central Excise.