The Hindu : Other States / Rajasthan News : CAG finds under assessment, non-recovery of revenue

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Wednesday, Apr 20, 2005

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Other States - Rajasthan

CAG finds under assessment, non-recovery of revenue

Special Correspondent

JAIPUR: The cases of under-assessment as well as non-recovery of revenue in Rajasthan for the year ended on March 31, 2004, led to a loss of Rs.381.48 crores.

Arrears mainly in taxes on sales, trade, State excise, irrigation levy, land revenue and non-ferrous mining and metallurgical industries, aggregating Rs.2,417.49 crores remained unrealized under the principal heads of revenue at the end of 2003-04.

The report of the Comptroller and Auditor General of India for the year ended March 31, 2004, placed on the table of the Rajasthan Assembly on Tuesday said test check on records of sales tax, land revenue, state excise, motor vehicles tax, stamps and registration fees, electricity duty and other tax and non tax receipts, conducted during the year 2003-04 revealed under assessment amounting to Rs.715.87 crore in 18,459 cases.

The CAG report found that irregular Sales Tax exemption granted to 35 industrial units resulted in short realization of revenue of Rs.17.90 crore. Application of incorrect rate of tax resulted in short levy of tax and interest of Rs.2.16 crore in five cases.

Similarly, levy of concessional rate of tax on taxable turnover relating to time barred declaration forms resulted in non-levy of tax of Rs.6.28 crore.

Non- levy of special road tax or a short fall in realization from the state carriages of the Rajasthan State Road Transport Corporation, private service vehicles and non-transport vehicles resulted in a revenue loss of Rs.5.53 crore. Motor vehicles tax and special road tax amounting to Rs.3.01 crore in respect of stage carriages, contract carriages and other passenger vehicles were not recovered.

The State suffered from revenue losses due to non-recovery of land instalments by the Colonization department from the allottees.

Despite of non-payment of instalment amounting to Rs.20.53 crores, allotments in 1,684 cases were not cancelled.

The tresspassers, occupying 97,526 bighas of land caused a loss of Rs.44.74 crore.

The CAG noted that differential cost, amounting to Rs.133.41 crore in respect of land measuring 78,965.20 bighas on conversion of land from un-command to command was not realized from cultivators.

Again, assessment of agricultural land measuring 9,479.55 bighas at lower rates resulted in short recovery of Rs.8.89 crore, it pointed out.The report detected a loss of Rs.1.21 crore in stamp duty and registration fees due to undervaluation of properties transferred.

Stamps had been in short supply in the State since 1993 and stamp vendors did not maintain stock and issue register in the prescribed proforma. There was a loss of revenue to the tune of Rs.5.86 crore due to purchase of stamps from vendors and LIC divisional office outside the State, it said.

The CAG also found fault with the State for not levying charges to the tune of Rs.32.89 crore for water supplied for drinking and industrial purposes.

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CAG finds under assessment, non-recovery of revenue