CAG reveals under-assessment, loss of revenue in Bihar

CAG reveals under-assessment, loss of revenue in Bihar

Last Updated: Wednesday, July 20, 2011, 19:35
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CAG reveals under-assessment, loss of revenue in Bihar
Patna: Comptroller and Auditor General (CAG) has revealed under-assessment or loss of revenue of Rs 2,399.68 crore in various commercial departments in Bihar during 2009-10.
The CAG report for the period ended on March 31, 2011, presented by Deputy Chief Minister S K Modi in the state assembly said records of commercial taxes, state excise, tax on vehicles, land revenue, non-ferrous mining and metallurgical industries and other departmental offices of 2009-10 were test checked and the under-assessment/short levy/loss of revenue was noticed in 2,092 cases.
During 2009-10, the concerned departments accepted under-assessments and other deficiencies of Rs.1,784.41 crore in 1,892 cases, the CAG report said.
In 10 commercial taxes circles, suppression of sales/purchase turnover of Rs 766.96 crore by 17 dealers resulted in under-assessment of tax of Rs 610.40 crore, including taxable penalty, it said.
Irregular claim of Input Tax Credit (ITC) by the dealers in two commercial taxes circles resulted in excess allowance of ITC of Rs 137.17 crore including taxable penalty.
Non-detection of application of incorrect rates of tax in seven commercial taxes circles resulted in short levy of tax of Rs.28.51 crore, including interest and taxable penalty.
In Patna West commercial taxes circle, though the inter-state stock transfer of goods valued at Rs 19.09 crore was not supported by prescribed declaration forms, the tax was levied at lower rate.
This resulted in short levy of tax of Rs 84.62 lakh, the CAG report said.

The CAG report said suppression of import/purchase of scheduled goods of Rs 238.39 crore by five dealers registered in five commercial taxes circles resulted in short levy of entry tax to Rs 56.58 crore including taxable penalty and interest.
A review of levy and collection of state excise revenue indicated that due to non-delayed settlement of excise shops coupled with non-operation of shops by the department or through BSBCL, the government sustained a loss of Rs 134.29 crore in the form of licence fee.
Due to the absence of periodic review of shop-wise lifting of liquor against allotted minimum guarantee quantity, short lifting of liquor by the licensees remained unnoticed leading to a loss of government revenue of Rs 94.61 crore, it said.
Bihar government's own contribution to the tax revenue was only 27 percent of the total revenue during the period 2009-10, CAG report said.
It said total receipts of the state government for 2009-10 were Rs.35,526.83 crore, while the revenue raised by it was Rs 9,760.09 crore comprising tax revenue of Rs 8,089.67 crore and non tax revenue of Rs 1,670.42 crore.
Receipts from the government of India were Rs 25,766.74 crore. The state's share of divisible union taxes was Rs.18,202.58 crore and grants-in-aid Rs 7,564.16 crore.
Thus, the state government's own contribution to tax revenue was only 27 percent of the total revenue, it noted.
Due to delayed institution of certificate proceedings for recovery of arrears, there was loss of revenue of Rs 3.14 crore in the shape of interest, the CAG said.

The internal audit was weak as evidenced by low quantum of departmental inspection, non-maintenance of registers and lack of internal audit, the CAG said.
In 26 district transport offices there was tax dues of Rs 19.52 crore (including penalty) pertaining to 751 transport vehicles owners nor action was taken towards realisation of dues by the concerned DTOs.
In three district transport offices, certificates of fitness issued to 14 transport vehicles without ensuring up-to-date payment of tax resulted in non-realisation of  Rs 54.76 lakh including penalty.
Besides, plying of these vehicles without proper inspection was fraught with risk of causing damage to public life and property, it said.
In four district transport offices, 7,498 professional driving licences were granted to ineligible persons which resulted in loss of Rs 15.75 lakh revenue and also involved road safety concerns.
A review on levy and collection of stamp duty and registration fee, the lack of coordination between the registration department and other public offices resulted in non-levy of stamp duty and registration fee of Rs 1.42 crore in test checked districts during 2004-05 to 2008-09, the report said.
Due to pendency in the disposal of referred cases and non-pursuance of the execution of deeds, the deficit stamp duty from finalised, referred and impounded cases could not be realised, leading to consequential blocking of government revenue of Rs 8.57 crore, it added.  


First Published: Wednesday, July 20, 2011, 19:35


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