Revenue Sector Government of Rajasthan
Total Page：16
File Type：pdf, Size：1020Kb
Report of the Comptroller and Auditor General of India on Revenue Sector for the year ended 31 March 2017 Government of Rajasthan Report No. 6 of the year 2017 Presented to the Legislature on 06.03.2018 Report of the Comptroller and Auditor General of India on Revenue Sector for the year ended 31 March 2017 Government of Rajasthan Report No. 6 of the year 2017 http://www.cag.gov.in TABLE OF CONTENTS Reference to Paragraph Page Preface v Overview vii-xi CHAPTER-I : GENERAL Trend of revenue receipts 1.1 1 Analysis of arrears of revenue 1.2 5 Arrears in assessments 1.3 5 Evasion of tax detected by the Department 1.4 6 Pendency of refund cases 1.5 7 Response of the Government/Departments to Audit 1.6 7 Analysis of the mechanism for dealing with the issues 1.7 10 raised by Audit in Transport Department Audit planning 1.8 11 Results of audit 1.9 11 Coverage of this Report 1.10 12 CHAPTER-II : TAXES ON SALES, TRADE, etc. Tax administration 2.1 13 Internal audit 2.2 13 Results of audit 2.3 14 Inadequate utilisation of RajVISTA for efficient revenue 2.4 15 collection Irregular allowance of input tax credit 2.5 16 Non/short levy of tax under Central Sales Tax Act 2.6 17 Short realisation of revenue due to irregularities in 2.7 19 assessments made by the Assessing Authorities CHAPTER-III : TAXES ON VEHICLES Tax administration 3.1 21 Internal audit 3.2 21 Results of audit 3.3 22 Implementation of High Security Registration Plate 3.4 23 Scheme in Rajasthan i Audit Report (Revenue Sector) for the year ended 31 March 2017 Reference to Paragraph Page Non/short realisation of outstanding installments of 3.5 34 lump-sum tax Taxes on motor vehicles not realised 3.6 34 Non-realisation of penalty on late deposit of special road 3.7 36 tax and surcharge by fleet owner CHAPTER-IV : LAND REVENUE Tax administration 4.1 37 Internal audit 4.2 37 Results of audit 4.3 38 Performance Audit on ‘Allotment and conversion of land 4.4 39 under Rajasthan Land Revenue Act in the Revenue Department’ CHAPTER-V : STAMP DUTY AND REGISTRATION FEE Tax administration 5.1 63 Internal audit 5.2 63 Results of audit 5.3 64 Short levy of Stamp Duty on registration of lease deeds 5.4 65 Short levy of Stamp Duty on registration of agriculture 5.5 67 land upto 1,000 square metre Non/short levy of Stamp Duty on amalgamation/ 5.6 67 demerger of companies Non/short levy of Stamp Duty on gift deeds 5.7 69 Short/non-levy of Stamp Duty and Registration Fee on 5.8 70 developer agreements Non-levy of Stamp Duty on partition deeds of 5.9 71 immovable properties Non-levy of Stamp Duty on transfer of lease by way of 5.10 72 assignment Irregular exemption of Stamp Duty under Rajasthan 5.11 73 Investment Promotion Scheme Short levy of Stamp Duty and Registration Fee due to 5.12 74 undervaluation of immovable properties Non/short levy of Stamp Duty on instruments presented 5.13 75 or executed in Public Offices ii Table of Contents Reference to Paragraph Page CHAPTER-VI : STATE EXCISE Tax administration 6.1 81 Internal audit 6.2 81 Results of audit 6.3 82 Procurement and sale of Hemp (Bhang) 6.4 83 Non-levy of licence fee for wholesale vend of country 6.5 91 liquor from bonded warehouse established at the place of manufacture Non-levy of excise duty on excess wastage of rectified 6.6 92 spirit transported under bond Non-levy of excise duty on excess alcohol used in 6.7 92 production of Liquor Loss of revenue due to short determination of composite 6.8 93 fee for shops in peripheral area Short recovery of licence fee from Hotel Bars 6.9 94 CHAPTER-VII: NON-TAX RECEIPTS Tax administration 7.1 97 Internal audit 7.2 97 Results of audit 7.3 98 Levy and collection of royalty on minerals removed 7.4 99 through permits Short recovery of revenue due to incorrect revision of 7.5 113 contract amount Non-raising of demand of interest 7.6 114 APPENDIX Appendix-I 117 Details of short recovery of revenue due to incorrect (Refer revision of contract amount Paragraph 7.5.1) iii Audit Report (Revenue Sector) for the year ended 31 March 2017 iv PREFACE This Report of the Comptroller and Auditor General of India for the year ended 31 March 2017 has been prepared for submission to the Governor of Rajasthan under Article 151 of the Constitution of India. This Report contains significant findings of audit of Receipt and Expenditure of major Revenue earning Departments under Revenue Sector conducted under the Comptroller and Auditor General’s (Duties, Powers and Conditions of Service) Act, 1971 and Regulations on Audit and Accounts, 2007 issued thereunder by the Comptroller and Auditor General of India. The instances mentioned in this Report are those, which came to notice in the course of test audit during the period 2016-17 as well as those which came to notice in earlier years but could not be reported in the previous Audit Reports; instances relating to the period subsequent to 2016-17 have also been included, wherever necessary. The audit has been conducted in conformity with the Auditing Standards issued by the Comptroller and Auditor General of India. v Audit Report (Revenue Sector) for the year ended 31 March 2017 vi OVERVIEW OVERVIEW This Report contains 28 paragraphs involving ` 357.23 crore, including a Performance Audit on ‘Allotment and conversion of land under Rajasthan Land Revenue Act in the Revenue Department’. Some of the significant audit findings are mentioned below: I. General The total revenue receipts of the Government of Rajasthan during 2016-17 were ` 1,09,026 crore as against ` 1,00,285.12, crore for the year 2015-16. The revenue raised by the Government amounted to ` 55,987.23 crore comprising tax revenue of ` 44,371.66 crore and non-tax revenue of ` 11,615.57 crore. The receipts from the Government of India were ` 53,038.77 crore (State’s share of divisible Union taxes of ` 33,555.86 crore and grants-in-aid of ` 19,482.91 crore). (Paragraph 1.1) Inspection Reports (IRs) issued up to December 2016 disclosed that 8,691 paragraphs involving ` 2,877.01 crore relating to 2,961 IRs remained outstanding at the end of June 2017. (Paragraph 1.6) II. Taxes on Sales, Trade, etc. Non-utilisation of information available on the departmental web-based application RajVISTA resulted in short/non-levy of tax of ` 26.27 crore. (Paragraph 2.4) Input tax credit was irregularly allowed by Assessing Authorities resulting in short realisation of revenue amounting to ` 3.78 crore. Short levy of tax due to application of (Paragraph 2.5) Incorrect levy of tax and improper use of declaration forms resulted in non/short realisation of revenue of ` 23.11 crore under Central Sales Tax Act. (Paragraph 2.6) Test check of assessment records of three circles revealed that the Assessing Authorities incorrectly finalised assessments of dealers resulting in short assessment of tax and excess grant of subsidy of ` 46.35 lakh. (Paragraph 2.7) III. Taxes on Vehicles A paragraph on ‘Implementation of High Security Registration Plate Scheme in Rajasthan’ disclosed the following: Transport Department had registered 1.36 crore vehicles upto 31 March 2016. However, High Security Registration Plates (HSRP) were affixed only on vii Audit Report (Revenue Sector) for the year ended 31 March 2017 36.43 lakh vehicles upto 31 March 2016 which was only 27 per cent of the total number of vehicles covered under the Scheme. (Paragraph 3.4.5) Audit noticed that affixation work of HSRPs was not monitored by the RTOs/DTOs. A number of deficiencies in affixation of registration plate, sticker, replacement of HSRPs, publicity programme, network connectivity and verification of vehicles were noticed. No physical verification of vehicles was carried out by District Transport Officers or Inspectors/Sub-Inspectors to ensure that a particular HSRP was affixed on the vehicle for which it was meant. (Paragraph 3.4.8.2) Lump-sum tax of ` 18.08 crore in respect of 4,289 transport vehicles was either not paid or paid short. (Paragraph 3.5) Motor vehicle tax and special road tax of ` 16.13 crore in respect of 4,945 vehicles for the period between April 2013 and March 2016 were not paid. (Paragraph 3.6) Penalty of ` 1.59 crore was not realised on late deposit of special road tax and surcharge by Rajasthan State Road Transport Corporation. (Paragraph 3.7) IV. Land Revenue A Performance Audit on ‘Allotment and conversion of land under Rajasthan Land Revenue Act in the Revenue Department’ disclosed the following: Audit found that a policy had not been put in place by the Government for allotment of land. Procedure for allotment of Government land had not been codified by the State Government. The Department had not framed a manual to regulate and control the working of the Department. Absence of the manual had resulted in lack of monitoring in the allotment of land and ascertaining the responsibility at each stage involved in the allotment of the land. No system existed for recording the details of the sanctions of the allotment of land issued from time to time by the Government. No provision has been made by the Department in the Rules or by issue of orders for maintenance of registers for monitoring the receipts of applications, their disposal, sanctions received and allotment made by the District Collectors.