Audit Reports

Indirect Tax

Overview

The Report for the year ended March 2019 contains significant results of the compliance audit of the Department of Revenue – Customs under the Ministry of Finance and Director General of Foreign Trade under Ministry of Commerce and Industry.

The sample of Commissionerates selected for test check included 48 out of total of 70 Customs Commissionerates. Audit of incentives provided under Foreign Trade policy (FTP) was carried out in 28 Regional authorities under the DGFT through test check of license files under various schemes of the FTP.

This report is divided into five chapters. Chapter I provides a brief description of functions of Department of Revenue and Department of Commerce and an overview of high level statistical information regarding Customs receipts, trade balance, import and export commodities, Performance of Special Economic Zones, arrears of customs receipts and results of department’s internal audit. Chapters II describes the CAG’s audit mandate, scope and results of audit efforts. Chapters III, IV, and V contain significant audit findings.

This report contains 114 paragraphs with total revenue implication of Rs.10,909 crore.  In 93 paragraphs involving money value of Rs.63 crore, rectificatory action has been taken by the department and recovery of Rs.32 crore has been effected till date.

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• Index
• Preface
• Executive Summary
• Glossary of terms and abbreviations
• Chapter I - Customs Revenue
• Chapter 2 - CAG’s Audit mandate and extent of Audit
• Chapter 3 - Subject Specific Compliance Audit on Show Cause Notices and Adjudication process
• Chapter 4 - Non-compliance to provisions of Customs Act, Customs Tariff Act and Tariff Notifications
• Chapter 5 - Non-compliance to provisions of various Export Promotion Schemes of Foreign Trade Policy
• Annexure