'Outstanding tax refunds reported during 2008-13 in Punjab'

Amid industry's demand for speedy tax refunds, Punjab Excise and Taxation department has reported outstanding tax refund of more than Rs 200 crore at the end of each financial year during 2008-09 till 2012-13.
In a revenue report prepared by the Comptroller and Auditor General of India (CAG), the Excise and Taxation department has reported outstanding tax refunds at the end of each financial year after receiving fresh tax claims and making refunds to the industry.
As per CAG report, the department has stated outstanding Value Added Tax (VAT) refunds of Rs 240.99 crore after making refunds to the tune of Rs 373.80 crore during 2008-09.

The outstanding balance of refunds stood at Rs 264.23 crore in 2009-10, Rs 203.28 crore in 2010-11 and Rs 259.53 crore in 2011-12.
In 2012-13 financial year, the department received maximum tax claims of Rs 842.33 crore while claims to the tune of Rs 380.28 crore were still pending, as per report.
Notably, delay in VAT refunds has been a major issue with the state industry which has always accused the Punjab Excise and Taxation department of making unwanted delay in disbursing refunds.

Punjab industry had, on many occasions, pointed out that despite state government setting up a separate refund fund account, there had been inordinate delay in refunds.

The issue of delay in tax refunds also came up in the recently concluded Punjab Budget session in state Assembly in which even BJP- the key ally of Shiromani Akali Dal (SAD) had asked the ruling government to ensure timely tax refunds to the industry by streamlining the procedure.
The government auditor in the report has also found arrears of revenue to the tune of Rs 1,935.16 crore at the end of 2012-13.
Out of the total arrears, a sum of Rs 627.32 crore was outstanding for more than five years, as per CAG report.
CAG in its report has also chastised various state government departments, including department of Finance, Excise and Taxation department, Revenue and Rehabilitation, Transport for not initiating action to rectify defects and irregularities pointed out by the government auditor.

In the report, the auditor pointed out that action was not taken by the respective government departments on inspection reports and audit observations involving revenue of Rs 7,330.98 crore till June 2013.
The heads of government department are required to promptly comply with observations to rectify defects and serious irregularities pointed out by Accountant General within one month from issue of inspection reports, it said.