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Compliance Financial Performance
Meghalaya

Report of 2010 - Financial Audit on Revenue of Government of Meghalaya

Date on which Report Tabled:
Wed 16 Mar, 2011
Date of sending the report to Government
Government Type
State
Sector Taxes and Duties,Finance,Transport & Infrastructure,Power & Energy,Environment and Sustainable Development

Overview

This Report contains 64 paragraphs and one review relating to under assessments/non-realisation/short realisation of penalties, taxes, duties etc. The total money value involved is RS 1,036.25 crore. During the year 2009-10, the total revenue raised by the State Government (RS 719.38 crore) was 20.87 per cent of the total revenue receipts (RS 3,447.35 crore). The balance 79.13 per cent of receipts during 2009-10 comprised of State's share of divisible taxes and duties amounting to RS 612.38 crore and grants-in-aid amounting to RS 2115.59 crore. The revenue raised by the State Government in 2009-10 as compared to 2008-09 was 20.96 per cent higher.

Test check of the records of sales tax, state excise, motor vehicles tax, other tax receipts, forest receipts and other non-tax receipts conducted during the year 2009-10 revealed underassessment / short / non-levy / loss of revenue amounting to RS 903.26 crore in 169 cases. During the year, the departments accepted assessments / short / non levy / loss of revenue of RS 31.37 crore in 15 cases pointed out in 2009-10 and earlier years, and recovered RS 0.26 crore.

A review of "Exemptions, Concessions and Remissions under the Meghalaya Industrial Policy 1997 and the schemes framed thereunder" and audit of Sales Tax Department revealed the following irregularities: Non-fulfilment of export obligation by industrial units set up in Export Promotion Industrial Park led to exemptions of RS 76.93 crore being irregularly allowed. Lack of clarity in the schemes of 2001 and 2006 regarding period for which incentives are to be allowed led to revenue loss ofRS 9.97 crore. Inconsistencies between the Industrial Policy 1997 and the Meghalaya Industries (Tax Remission) Scheme, 2006 led to tax incentive of RS 5.31 crore being irregularly allowed.

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