CAG pulls up Delhi sales tax dept

The absence of any mechanism in the Delhi Sales Tax department for cross-verification of statutory forms submitted by dealers for availing exemption in inter-state sales has resulted in a revenue loss of at least Rs 53.88 crore, a Comptroller and Auditor General report has stated.

According to the report, which was tabled before the Delhi Assembly on Friday, incorrect grant of exemption of Rs 55.06 crore on 31 fake 'H' forms resulted in short levy of sales tax to the tune of Rs 25.96 crore.

The report also said incorrect application of rate of tax in 22 cases resulted in short levy of sales tax amounting to Rs 3.88 crore. In addition, interest of Rs 1.63 crore and penalty of Rs 6.89 crore were also leviable.

Irregular grant of excess exemption on tax paid goods in 10 cases resulted in short levy of sales tax of Rs 2.08 crore inclusive of interest.

Short accountal of stock resulted in under assessment of sales tax amounting to Rs 6.55 crore inclusive of interest and penalty. Non-levy of sales tax on sale of tradable licenses resulted in non-levy of tax of Rs 79.85 lakh inclusive of interest, the report said.