Compliance Performance
Rajasthan

Report No. 2 of 2015 - Financial Audit on Revenue Sector of Government of Rajasthan

Date on which Report Tabled:
Wed 25 Mar, 2015
Date of sending the report to Government
Government Type
State
Sector Taxes and Duties,Finance

Overview

This Report contains 34 paragraphs involving RS 228.02 crore, including two Performance Audits on 'Levy and Collection of Value Added Tax on Works Contract' and 'Receipts from Minor Minerals'. The total revenue receipts of the Government of Rajasthan during 2013-14 were RS 74,470.37 crore as against RS 66,913.01 crore for the year 2012-13. The revenue raised by the Government amounted to RS 47,052.95 crore comprising tax revenue of RS 33,477.70 crore and non-tax revenue of RS 13,575.25 crore. The receipts from the Government of India were RS 27,417.42 crore (State's share of divisible Union taxes of RS 18,673.07 crore and grants-in-aid of RS 8,744.35 crore).

Inspection Reports (IRs) issued upto December 2013 disclosed that 9,477 paragraphs involving RS 4,592.63 crore relating to 2,896 IRs remained outstanding at the end of June 2014. A Performance Audit of 'Levy and Collection of Value Added Tax (VAT) on Works Contract' disclosed the following: There was no separate sub-head for classifying the works contract receipts as such the performance of the Department relating to the total receipts on account of works contract could not be ascertained. Analysis of data of returns revealed that during the last three years on an average 66 per cent dealers had either not filed their returns or had filed their returns with nil turnovers. No attempt was made by the Department to ascertain the reasons for non-filing or filing of returns with nil turnovers.

Audit found that four dealers were assessed with nil turnover though their turnover was RS 91.20 crore, involving tax liability of RS 1.57 crore. No system existed for watching the receipt of the Form VAT-40 received from the awarders and for utilising the information, wherever received in the registration and assessment of the concerned dealers. Twelve works contractors involving a tax liability of RS 93.80 lakh were not found registered with the Department. The Assessing Authorities of five WT circles issued 41,767 VAT-41 forms during 2008-09 to 2012-13 to 527 awarders, though they were not authorised to issue the same. In five cases interest and penalty of RS 32.97 lakh were not levied on the awarders for delay in depositing the tax deducted at source (TDS) by them while in another case TDS was deposited short by RS 39.12 lakh.

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