Compliance Performance
Uttar Pradesh

Report of 2009 - Financial Audit on Revenue of Government of Uttar Pradesh

Date on which Report Tabled:
Thu 28 Jan, 2010
Date of sending the report to Government
Government Type
Sector Taxes and Duties


This report contains 13 paragraphs including two reviews relating to non/short levy of tax. penalty, interest etc. involving Rs. 109.07 crore. The total receipts of the Government of Uttar Pradesh for the year 2008-09 were Rs. 77,830.73 crore against Rs. 68,672.47 crore during 2007-08. The revenue raised by the State Government amounted to Rs. 35,425.52 crore comprising tax revenue of Rs. 28,658.97 crore and non-tax revenue of Rs. 6,766.55 crore. The receipts from the Government of India were Rs. 42,405.21 crore (State's share of divisible Union taxes: Rs. 30,905.72 crore and grants-in-aid: Rs. 11,499.49 crore). Tlius. the State Government could raise only 46 per cent of the total revenue. Taxes on sales, trade etc. (Rs. 17,482.05 crore) and miscellaneous general services (Rs. 1,698.79 crore) were the major source of tax and non-tax revenue respectively during the year 2008-09.

As on 31 March 2009 arrears of revenue under principal heads of revenue as reported by concerned departments were Rs. 15.731.74 crore. Inspection reports numbering 8.547 issued upto 31 December 2008 containing 20.222 audit observations with money value of Rs. 4,559.97 crore had not been settled upto June 2009. Test check of the records of commercial tax. taxes on vehicles, goods and passengers, stamp duty and registration fees, public w orks, finance departments, forest and entertainment tax etc., conducted during the year 2008-09 revealed under assessments/short levy/loss of revenue amounting to Rs. 1.156.87 crore in 3.272 cases. During the year 2008-09, the concerned departments accepted under assessments and other deficiencies of Rs. 8.23 crore in 372 cases of which Rs. 3.31 crore had been recovered in 298 cases upto March 2009.

A performance review on "Collection of arrears in Commercial Tax Department" revealed as under: Frequent reopening of cases of assessments under Section 30 resulted in non-realisation of tax of Rs. 48.17 crore. Cross check of "Demand and Recovery Register" with monthly returns submitted by 85 assessing authorities to Joint Commissioner (Executive) revealed discrepancy in figures of Rs. 254.62 crore in revenue realisation. Non-observance of prescribed procedure, delay in issue of recovery certificates and non-ensuring of particulars of the dealers at the time of registration resulted in non-realisation of tax of Rs. 142.69 crore.

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