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The Comptroller & Auditor General of India (CAG) has pegged the revenue loss of the Odisha government due to under assessment/short levy in collection of value added tax (VAT), sales tax, entry tax, profession tax, stamp duty, excise duty and mining receipts at Rs 13428.22 crore in 2012-13.
These revenue losses pertained to 162,150 cases as per the latest CAG report on the revenue sector for the year ended March 31, 2013.
“During 2012-13, the government departments accepted under assessments and other deficiencies of Rs 6174.36 crore involved in 6516 cases of which 2649 cases involving Rs 6166.08 crore was pointed out during 2012-13 and the rest in earlier years. The departments collected Rs 2.69 crore in 742 cases during 2012-13”, said the CAG report.
The department of steel & mines has accepted revenue under assessment and other deficiencies amounting to Rs 6090.64 crore as pointed out by the CAG in 206 cases.
In 2012-13, audit scrutinised records of 52 units relating to Odisha Value Added Tax (OVAT), Central Sales Tax (CST), Odisha Entertainment Tax (OET) and profession tax on 'Deduction of Tax at Source from Works Contractors'. Cases of short levy of tax/interest/penalty involving Rs 438.02 crore in 2860 cases was noticed. The central auditor pointed out that despite switching over to an IT-enabled system in all the commercial tax offices, the finance department was unable to take adequate corrective action.
The revenue short realisation in motor vehicle collection has been pegged at Rs 87.34 crore. The finance department accepted under assessment of Rs 8.62 crore but realised only Rs 0.53 crore.
Similarly, in case of stamp duty and registration fee, audit scrutiny found short realisation of Rs 217.06 crore in 5609 cases.
Though the finance department accepted under assessment, non-realisation of revenue and other irregularities involving Rs 50.33 crore, it was able to recover only Rs 20 lakh.
The CAG pointed out that the department needs to improve internal control system including strengthening of internal audit wing so that weaknesses in the system are addressed and omissions of the nature detected by audit are avoided in the future.
For state excise duty, the revenue short levy is pegged at Rs 141.17 crore in 1001 cases.
