The Orissa government lost about Rs 1502.69 crore revenue in 2008-09 due to various irregularities in tax administration.
The irregularities included under assessment, short or non-levy of taxes, excess exemption, incorrect calculation of taxable turnover, non-imposition of penalty, non levy of royalty on coal despatched from leasehold areas, non levy of royalty on un-processed minerals, non-levy of special water rate on water used by a hydro-electric project.
This has been pointed out by the Comptroller and Auditor General of India (CAG) in its revenue receipts audit report for 2008-09, tabled in the Orissa Legislative Assembly (OLA).
During the test check of records of value added tax (VAT), entry tax, motor vehicle tax, land revenue, excise, forest receipts, mining revenue, the concerned departments accepted underassessment and other deficiencies amounting to Rs 118.21 crore involving 85,766 cases.
The report stated that test check of records in commercial tax offices during the last fiscal showed under assessment of tax, non or short levy of tax, surcharge, interest and penalty, incorrect computation of taxable turnover, application of inappropriate tax rate, incorrect grant of exemption and other deficiencies amounting to Rs 310.61 crore pertaining to 340 cases.
The department accepted underassessment and other deficiencies of Rs 4.88 crore in 84 cases which were pointed out by audit during the earlier years.
However, the department was able to recover Rs 73.65 lakh in 23 cases, the report said. CAG pointed out various deficiencies in the transition from sales tax to value added tax (VAT) which included belated reorganisation of ranges and circles, manpower shortage, lacunas in the VAT act/rules and failure to make submission of supporting documents mandatory along with the return for the dealers.
Similarly, undue concession to captive power plants installed by different industrial units resulted in loss of Rs 139.51 crore which was leviable.
Non-levy of tax and penalty on sugarcane, sugar and textile fabrics resulted in loss of Rs 14.33 crore. In two cases, there was short determination of taxable turnover, which led to under assessment of tax and penalty of Rs 3.49 crore.
On motor vehicle tax, the audit report stated that non-imposition of penalty or daily damages for delay in completion of the smart card based registration certificate project cost the state Rs 1.87 crore.
Similarly, non-imposition of penalty for not meeting the scheduled commercial operation date by a concessionaire resulted in revenue loss of Rs 1.06 crore.
Besides, non-realisation of motor vehicle tax and additional tax of Rs 63.58 crore in case of 30,521 vehicles caused loss to the state exchequer. CAG stated that due to non-collection, short assessment there was Rs 434.47 crore loss in the collection of land revenue, stamp duty and registration fees. The department accepted underassessment and non-realisation of revenue amounting to Rs 38.15 crore in 22,128 cases.
On mining receipts, the audit report revealed that due to non levy or short levy of royalty, dead rent, surface rent along with non or short recovery of interest and other irregularities, the government lost Rs 202.52 crore. While the department accepted audit findings amounting to Rs 6.94 crore involving 69 cases, it recovered Rs 9.21 lakh in 12 cases. Similarly, the non-levy of special water rate in respect of use of water by Upper Indravati Hydro Electric Project resulted in loss of Rs 200.03 crore revenue, it stated.
