Hyderabad: Corruption and negligence of some officers in the levy of taxes and duties has cost the state exchequer hundreds of crores of rupees, according to the Comptroller and Auditor General report that was tabled in the Assembly on Wednesday.
The CAG said that the state government had lost Rs 936.10 crore revenues due to non-levy and short levy of taxes and duties in the commercial taxes, Excise, stamps and registrations, transport, land revenue and other departments.
The CAG found Rs 8,960 core outstanding arrears in six departments as on March 31, 2015, out of which Rs 1,951.63 crore were due for more than five years. The CAG said a performance audit on the implementation of VAT revealed a Rs 27.89-crore loss of revenue to the exchequer. Non-compliance with checks prescribed in the VAT audit manual resulted in leakage of revenue of Rs 20.50 crore.
The CAG said that inadequate scrutiny of returns resulted Rs 2.02 crore tax not being paid on transfer of right to use goods. Incorrect computation of taxable turnover resulted in Rs 1.22 crore revenue loss. In the Excise department, the CAG said in three offices of Excise superintendents, annual licence fee for bar licences was short-levied by Rs 1.40 crore on 13 restaurant and bars.
In five offices of Excise superintendents, additional licence fee amounting to Rs 50.80 lakh was not levied on six restaurants and bars. In three offices licence fee of Rs 75.50 lakh was short-levied on 10 retail liquor shops. In 11 offices permit room licence fee of Rs 41.42 lakh was either not levied or short realised.
In the stamps and registration department, the CAG’s test checks of records in eight offices of district registrars and 12 offices of sub-registrars revealed undervaluation of properties in respect of 100 documents such as sale deeds, gift deeds, partition deeds, settlement deeds, exchange deeds, development agreements.
This resulted in short levy of stamp duty, transfer duty and registration fee of Rs 3.53 crore. In the transport department, the CAG said quarterly tax of Rs 1.49 crore and penalty of Rs 2.97 crore were not realised from owners of 1,513 transport vehicles in four district transport commissionerates and four offices of regional transport offices.
Non-renewal of fitness certificates of 31,604 transport vehicles resulted in Rs 1.17 crore revenue loss, the CAG said. The CAG said that in the land revenue department, undervaluation of property and usage of land for non-agriculture purposes without prior permission of competent authority resulted in non/short levy of conversion tax and penalty of Rs 1.96 crore.
In another case, lack of coordination between RDOs and panchayat officers, gram panchayats led to non-levy of conversion tax and penalty of Rs 21.27 crore. The CAG said excess compensation of Rs 2.68 crore was paid in nine cases while acquiring 242.04 acres. The government lost Rs 18.13 crore due to lessees adopting incorrect measuring of limestone dispatches and the rate of loyalty.
