Compliance Performance

Report No. -4 of 2014 Government of Punjab - Report of the Comptroller and Auditor General of India on Revenue Sector

Date on which Report Tabled:
Fri 20 Mar, 2015
Date of sending the report to Government
Government Type
Sector Taxes and Duties


This report contains one performance audit on levy and collection of motor vehicle taxes and 21 paragraphs relating to non/short levy of output taxes/central sales tax, refunds in VAT, non/short levy of stamp duty and registration fee, non/short levy of motor vehicle tax, non-realisation of receipts of minor mineral etc. involving RS 221.22 crore. The total receipts of the State Government for the year 2013-14 were RS 35,103.54 crore as compared to RS 32,051.15 crore of the previous year. Out of this, the Government raised RS 27,270.69 crore, comprising tax revenue of RS 24,079.19 crore and non-tax revenue of RS 3,191.50 crore. The State Government received RS 4,431.47 crore as State's share of divisible Union taxes and RS 3,401.38 crore as Grants-in-aid from the Government of India.

Test check of records of 324 units of Sales Tax/Value Added Tax, State Excise, Motor Vehicles, Goods and Passengers, Forest Receipts and other Departmental offices conducted during the year 2013-14 showed under assessment/short levy/loss of revenue aggregating RS 477.04 crore in 61,882 cases. During the course of the year, the Departments concerned accepted under assessment and other deficiencies of RS 0.73 crore involved in 168 cases which were pointed out in audit during 2013-14. The Departments collected RS 5.09 crore in 1,245 cases during 2013-14, pertaining to the audit findings of previous years.

In four cases, excess notional input tax credit of RS 22.42 lakh was allowed due to non/short reversal on account of goods purchased and sold as zero rated/inter state sale/export. Excess allowance of ITC of RS 267.94 lakh was allowed in 16 cases due to non/short reversal of ITC on branch transfer, incorrect calculation, non-reversal on entry tax, short reversal of tax free and non/short debit of ITC etc. 49 dealers were issued provisional refunds of RS 3.24 crore even after the mandatory deadline i.e. close of that financial year. Out of these, 39 dealers used 8 two wheelers1 in 767 transactions on which goods worth of RS 4.53 crore were shown to have been transported to dealers in States like Tamil Nadu, Assam, Maharashtra, Jharkhand etc. which seems to be unjustified and needs investigation.

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