The Performance Audit on System of Assessment under Value Added Tax in Tamil Nadu revealed (i) non-adherence to conditions governing deemed assessment (ii) deficiencies in the system of selection of assessments for detailed scrutiny, (iii) non-utilisation of information contained in Form WW and in intranet of CTD by the assessing authorities while making assessment and (iv) ineffectiveness of the internal control and monitoring system.
Follow up of Performance Audit on Implementation of Value Added Tax in Tamil Nadu indicated that though measures were put in place for implementation of four out of eight accepted recommendations, necessary follow-up action for due compliance was not undertaken.
Audit of “Registration of various Agreement Deeds and relevant Deeds of Power of Attorney” revealed that the Registering Officers failed to link the instruments of Power of Attorney and Sale Agreement when these instruments were registered in respect of the same properties and were between the same or related persons. The resultant misclassification of instruments led to short levy of stamp duty and registration fee.
Audit of “Assessment and collection of Electricity Tax” revealed the absence of system to monitor the filing of returns by the entities. The excess demand and energy charges were not considered as current consumption charges for levy of electricity tax