Audit Reports
Tamil Nadu
Report of 2010 - Financial Audit on Revenue of Government of Tamilnadu
Overview
The Report contains 22 paragraphs including one review relating to non/short levy of taxes, interest, penalty, etc. involving RS 149.13 crore. The total receipts of the State during 2009-10 was RS 55,844.13 crore, comprising RS 36,546.66 crore as tax revenue and RS 5,027.05 crore as non-tax revenue. RS 8,756.20 crore was received from the Government of India as State's share of divisible Union taxes and RS 5,514.22 crore as grants-in-aid. The revenue raised by the State Government in 2009-10 was 74 per cent of the total revenue receipts as compared to 72 per cent in 2008-09. Sales tax (RS 22,661.52 crore) formed a major portion (62 per cent) of the tax revenue of the State. Interest receipts, dividends and profits (RS 1,845.61 crore) accounted for 37 per cent of the non-tax revenue.
Test check of the records relating to sales tax, value added tax, luxury tax, state excise, land revenue and taxes on vehicles conducted during the year 2009-10 revealed under assessments, short levy, loss of revenue and other observations amounting to RS 343.98 crore in 1,406 cases. A review on "Computerisation of the check posts in Commercial Taxes Department" revealed as under: Large scale omission to collect goods movement details at the check posts resulted in ineffective monitoring of taxes due to the State. No action was taken to levy tax amounting to RS 14.99 crore on the value of goods and penalty of RS 22.49 crore thereon in respect of transit passes issued during 2007-08 to 2009-10 by selected six check posts, which were not surrendered.
Absence of mandatory provisions for Fast Track Clearance System resulted in poor patronage of the scheme and non-achievement of the benefits envisaged. Lack of input control on vital information like Tax payers Identification Number and commodity code led to incorrect capturing of vehicle movement details. Failure to utilise the available information resulted in movement of goods by non-filers, unregistered, cancelled and bogus dealers across the check posts involving tax and penalty of RS 39.78 crore.