MENU
About Us
About Us
Our Mandate
Disclosure
Our Offices
State Level Offices
Central Audit Offices
Training Institutes
Audit Reports
Accounts
Resources
Contact Us
Working with Us
Contact Us
Media Centre
Others
CoRE
Employee Corner
Grievances
International Relations

Audit Reports

Audit Reports

Go Back
Financial
Madhya Pradesh

Report No 5 of 2016 - Revenue Sector Madhya Pradesh

Date on which Report Tabled:
Fri 24 Mar, 2017
Date of sending the report to Government
Government Type
State
Sector Taxes and Duties

Overview

This Report contains 52 paragraphs including one Information Technology Audit and two Audits involving Rs. 970.62 crore. The Departments/Government have accepted audit observations involving Rs. 183.88 crore out of which Rs. 2.50 crore was recovered. Information Technology Audit on "e-Registration (SAMPADA)" revealed serious irregularities in Planning and implementation of the system, execution of work of software development, procurement of hardware and deficiencies in System design, validation controls, service delivery and lacunae in internal control mechanism. No IT security policy was prepared by the Department for e-Registration. A compliance audit on the Department of Registration and Stamps brought out certain irregularities such as, cases referred by Sub registrar for determination of market value of properties had not been finalised by the Collector of Stamps (District Registrar) and in 297 instruments, the SRs did not refer them to the Collector of Stamps though the market value of the property was higher as per guidelines. Audit on "Disposal of appeal and remand cases under Section 46 of MP VAT Act 2002" disclosed that there was inordinate delay and irregularities in disposal of appeal cases, incorrect waiver of penalty, second appeal not preferred etc., to mention a few. Compliance audit of the Commercial tax department also revealed entry tax not levied/short levied, irregular grant of deduction, irregularities in allowance of ITR, incorrect determination of turnover, application of incorrect rate of tax etc., the financial implication of which amounted to Rs. 84.06 crore. Audit on "Levy and collection of Electricity duty, fees and cess" revealed irregularities in timely deposition and utilisation of the Energy Development cess, delay in conversion of ED due against DISCOMs into perpetual loan, separate meters for dutiable and not dutiable consumption of electricity not being installed and failure to inspect electrical installations annually. The money value of the audit findings summed upto Rs. 679.02 crore. In Mining Department, the Department did not recover the amount of rebate of Stamp duty and Registration fees amounting to Rs. 9.46 crore on agreement of allotment of leases despite conditions of agreement not fulfilled. Further, Stamp duty and registration fees, rural infrastructure and road development tax, contract money, dead rent, royalty etc., on mining/quarry/trade quarry leases was short realised/not realised resulting in loss of revenue. In State Excise Department, EVCs were not furnished on 175 permits for transport/export of foreign liquor/beer involving excise duty of Rs. 17.61 crore. License fees on licenses of poppy straw amounting to Rs. 12.15 crore was not recovered. The Department did not levy penalty of Rs. 6.05 crore on 107 warehouses for not installing VSAT connectivity. Motor vehicle tax and penalty in respect ofpublic service vehicles kept for use as reserve, goods vehicles, maxicabs/taxicabs, Earthmovers/harvesters and stage camiage was neither paid by the vehicle owners nor demanded by the TAs amounting to Rs. 13.09 crore and penalty of Rs. 9.14 crore. Compliance audit of the Revenue Department disclosed that diversion premium and rent on land situated in gram panchayat areas was not levied depriving the Government of revenue of Rs. 2.48 crore.

Download Audit Report