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Compliance Performance
Punjab

Report No. 3 of 2019 - Revenue Sector, Government of Punjab

Date on which Report Tabled:
Thu 27 Feb, 2020
Date of sending the report to Government
Mon 07 Oct, 2019
Government Type
State
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Sector Taxes and Duties

Overview

This Audit Report comprises six chapters incorporating one performance audit and 17 paragraphs. Chapter-I contains overview of Revenue collection in the State, Chapter-II contains audit observations relating to Taxes on Sales and Trade which include a paragraph on “Preparedness for transition to Goods and Services Tax (GST)”, Chapter-III contains audit observation relating to State Excise, Chapter-IV contains audit observations relating to stamp duty and registration fee which include a paragraph on “Remission of Stamp Duty and Registration Fee on Mega Projects”, Chapter-V contains Performance Audit on “Levy and Collection of Taxes on Vehicles” and Chapter-VI contains audit observation relating to Other Tax and Non-Tax receipts. Total revenue implication of the Report is Rs 121.47 crore.

The total receipts of the State Government for the year 2017-18 were Rs 53,009.58 crore. The Government raised Rs 34,741.63 crore, comprising tax revenue of Rs 30,423.24 crore and non-tax revenue of Rs 4,318.39 crore. The State Government received Rs 10,616.94 crore as State’s share of divisible Union taxes and Rs 7,651.01 crore as Grants-in-aid from the Government of India. Revenue raised by the Government was 66 per cent of total receipts of the Government of Punjab.

The Government/Department was prompt in its preparedness for implementation of GST regarding enactment of the Act and Rules as per model law approved by GST Council, migration of existing taxpayers, capacity building efforts etc. The Department needs to sort out the legacy issues like assessments of pre-GST cases, recovery of arrears and refund of tax relating to pre-GST regime expeditiously in a time bound manner through focused arrangements.

The Department remitted registration fee of Rs 1.85 crore whereas remission of RF was not available to Mega Housing Projects. Developers evaded SD and RF of Rs 6.99 crore by not presenting collaboration agreements for registration due to acceptance of unregistered documents by Chief Town Planner, Punjab at the time of issue of change of land use. Due to non-consideration of CLU while updating Collector’s rate list, SSF, SIC and RF of Rs 39.94 lakh was short realised.

Due to absence of mechanism to monitor arrears of MVT and ensure its timely recovery taxes of Rs 34.14 crore remained unrealized. There was short realisation of trade fee and possession tax from dealers of motor vehicles amounting to Rs 7.95 crore in the test checked Regional Transport Authorities.  Unauthorised pollution control centres were issuing pollution under control certificates without having proper testing facilities.

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