Audit Reports
Odisha
Report No. 1 of 2015 - Compliance and Performance Audit on Revenue Sector of Government of Odisha
Overview
This Report contains 58 paragraphs and two Performance Audits (PAs) relating to non/short levy of tax, interest, penalty, revenue foregone, etc., involving RS 737.71 crore. The total revenue receipts of the Government lor the year 2013-14 amounted to RS 48,946.85 crore against RS 43,936.91 crore in the previous year. Of this, 51.63 per cent was raised by the State through tax revenue (RS 16,891.59 crore) and non-tax revenue (RS 8,378.60 crore). The balance 48.37 per cent was received from the Government of India in the form of State's share of divisible Union taxes (RS 15,247.24 crore) and Grants-in-aid (RS 8,429.42 crore).
Test check of the records of assessment/collection of Value Added Tax including Sales Tax. Entry Tax, Profession Tax etc.. Motor Vehicles Tax, Stamp Duty and Registration Fees. State Excise Duty. Mining Receipts during the year 2013-14 revealed under assessment/short-levy/loss of revenue and other observations amounting to RS 4.713.63 crore in 5.10.147 cases. Audit on "Scrutiny of returns under VAT regime by Commercial Tax Department" revealed the following: Input Tax Credit of RS 2,247.38 crore availed by 26,511 dealers under the Odisha Value Added Tax Act, 2004 remained unverified due to non-scrutiny or ineffective scrutiny of returns. Less payment of tax of RS 18.89 crore by a dealer under Odisha Value Added Tax Act, 2004 remained undetected due to non-scrutiny or ineffective scrutiny of returns.
Claim of concession/ exemption of Central Sales Tax of RS 1,684.26 crore availed by 4,973 dealers remained unverified. Genuineness of concession/ exemption of tax of RS 191.45 crore availed by 954 dealers without submitting declarations/ certificates remained unverified by the AAs was fraught with risk of possible loss of Government revenue as assessment of the tax periods became time-barred. Action for levy of penalty under Odisha Value Added Tax Act. 2004 was not initiated against 6.111 dealers for non-submission of statements of closing stock in trade. Action for levy of penalty under Odisha Value Added Tax Act, 2004 was not initiated against 7,262 dealers for non-submission of certified reports on annual audited accounts.