State Audit Report for 2003-04

Table Of Contents

 

Chapter

Contents

Paragraph

Page(s)

 

Preface

 

v

 

Overview

 

vii

CHAPTER I

GENERAL

 

 

 

Trend of revenue receipts

1.1

1

 

Variations between Budget estimates and actuals

1.2

4

 

Analysis of collection

1.3

5

 

Cost of collection

1.4

5

 

Collection of sales tax per assessee

1.5

6

 

Analysis of arrears of revenue

1.6

6

 

Arrears in assessment

1.7

8

 

Evasion of tax

1.8

8

 

Write-off and waiver of revenue

1.9

9

 

Refunds

1.10

9

 

Results of audit

1.11

9

 

Failure of senior officials to enforce accountability and protect interest of Government

1.12

10

 

Departmental Audit Committee Meetings

1.13

12

 

Response of the departments to Draft Audit Paragraphs

1.14

12

 

Follow-up on Audit Reports -summarised position

1.15

13

CHAPTER II

SALES TAX

 

 

 

Results of Audit

2.1

15

 

Non-levy of interest

2.2

16

 

Short levy of tax on works contracts

2.3

18

 

Sales tax incentives for industrial units

2.4

19

 

Short levy of tax due to arithmetical mistakes

2.5

26

 

Short levy of tax due to misclassification of goods

2.6

26

 

Non/short levy of tax on inter-State sales

2.7

28

 

Application of incorrect rate of tax

2.8

29

 

Demands not taken to Demand, Collection and Balance (DCB) Register

2.9

30

 

Short/non levy of tax on lease rentals

2.10

31

 

Incorrect grant of exemption

2.11

32

 

Non-levy of tax, penalty and compounding fee

2.12

33

 

Non/short levy of turnover tax

2.13

34

 

Excess/incorrect grant of set off and Value Added Tax

2.14

35

 

Non-forfeiture of excess tax collections

2.15

36

 

Incorrect application of concessional rate

2.16

36

 

Incorrect computation of taxable turnover

2.17

37

 

Non-levy of tax on materials purchased from
un-registered dealers

2.18

38

 

Non-levy of interest on non-payment of arrears of taxes

2.19

39

CHAPTER III

STATE EXCISE DUTIES

 

 

 

Results of Audit

3.1

41

 

Short levy of licence fee

3.2

42

 

Short collection of tree tax

3.3

42

 

Loss of revenue due to short allotment of trees

3.4

43

 

Non-levy of interest on excise arrears

3.5

43

CHAPTER IV

LAND REVENUE

 

 

 

Results of Audit

4.1

45

 

Short levy of water tax due to incorrect adoption of rate

4.2

46

 

Incorrect grant of remission of water tax

4.3

47

 

Non/short levy of road cess in command areas of irrigation projects

4.4

47

 

Non/short assessment of non-agricultural lands

4.5

49

 

Incorrect fixation of market value in regularisation of encroached lands

4.6

50

 

Short-demand/non-collection of establishment charges

4.7

51

 

Blockage of revenue due to non-finalisation of alienation of government land

4.8

52

 

Non-levy of interest on arrears of revenue

4.9

53

CHAPTER V

TAXES ON VEHICLES

 

 

 

Results of Audit

5.1

55

 

Non/short levy of tax and penalty

5.2

56

 

Unauthorised retention of fines collected by APSRTC

5.3

56

 

Short collection of tax

5.4

57

 

Non-levy/collection of compounding fee

5.5

57

CHAPTER VI

STAMP DUTY AND REGISTRATION FEES

 

 

 

Results of Audit

6.1

62

 

Review on Stamp Duty

6.2

62

 

Non/short levy of stamp duty due to adoption of incorrect rate

6.3

72

 

Deficit stamp duty and Registration fee on BOT Agreement and Lease Deeds

6.4

73

 

Loss of revenue due to incorrect adjustment of stamp duty

6.5

75

 

Under valuation of Properties

6.6

75

 

Incorrect classification of lease as licence agreement

6.7

77

CHAPTER VII

OTHER TAX RECEIPTS

 

 

 

Results of Audit

7.1

79

 

Non/short levy of Profession Tax

7.2

80

 

Short levy of Entertainments Tax

7.3

81

 

Non-levy of tax and penalty on cable operators

7.4

81

 

Non-levy of interest on dues payable under APET Act

7.5

82

CHAPTER VIII

NON-TAX RECEIPTS

 

 

 

Results of Audit

8.1

83

 

ENVIRONMENT, FORESTS, SCIENCE AND TECHNOLOGY DEPARTMENT

 

 

 

Review on Forest Offences

8.2

85

 

INDUSTRIES AND COMMERCE DEPARTMENT

 

 

 

Non/short remittance of Seigniorage Fee

8.3

94

 

Short realisation of royalty

8.4

95

 

MUNICIPAL ADMINISTRATION AND URBAN DEVELOPMENT DEPARTMENT

 

 

 

Non-payment of Royalty

8.5

96

 

Non-collection of interest on Water Supply Charges

8.6

96

 

FINANCE DEPARTMENT

 

 

 

Non-recovery of interest

8.7

97