Special Correspondent

Government lost Rs. 638 crore due to

under-assessment, non-/short levy of taxes

Departments concerned have accepted mistakes with regard to Rs. 299.21 crore

Bangalore: The Comptroller and Auditor General of India, who audited the revenue receipts of the State Government, had indicted it for under-assessments, non/short levy of taxes, loss to revenue and failure to raise demands involving Rs. 638.87 crore in 1,075 cases during 2008-09.

According to the report tabled in the Legislative Assembly, during the audit, the departments concerned accepted their mistakes with regard to Rs. 299.21 crore in 1,183 cases, including 1,053 cases involving Rs.265.86 crore, which were pointed out in the earlier years.

A sum of Rs. 22.72 crore relating to 855 audit observations were recovered at the instance of the audit. A review of levy and collection of stamp duty and registration fees revealed that no rules prescribing the procedures for conducting inspection of public offices were framed. As such, the department was unaware of any leakage/evasion of revenue on instruments presented before the officers in-charge of public offices.

Absence of a system of coordination with various agencies to ensure realisation of proper duty led to non-realisation of revenue of Rs. 214.44 crore. Leakage of revenue due to non-execution of lease deeds subsequent to revision of mining plans in nine cases amounted to Rs. 2.49 crore. Incorrect classification of bonds led to short levy of stamp duty of Rs. 42.65 crore.

Stamp duty

Non-detection of suppression of fact of executing a general power of attorney along with an agreement for sale in three cases resulted in short levy of stamp duty and registration fees of Rs. 18.94 crore. Besides, penalty of Rs. 44.88 crore was also realisable. Non-detection of evasion of stamp duty by not mentioning the conversion of agricultural land for non-agricultural purpose led to short levy of stamp duty and registration fees of Rs. 19.16 lakh. Besides penalty of Rs. 85.70 lakh was also realisable.

About the non-tax receipts, the report said that fixation of concessional lease rent by Government in respect of properties leased to non-charitable private bodies/individuals such as Bangalore Golf Club, Karnataka State Cricket Association, Bangalore Turf Club, branch of the State Bank of India and Mysore Race Club Limited resulted in foregoing of revenue of Rs. 1,205.97 crore.

Non-levy of centage charges and establishment, tools and plancharges in respect of 1,820 works for services rendered by the Public Works Department during 2003-04 to 2007-08 resulted in loss of revenue of Rs. 19.30 crore. Life time tax of Rs. 1.07 crore was levied short in respect of 79 vehicles in four RTOs. The conversion fine of Rs. 95.13 lakh for diversion of agricultural land for non-agricultural purposes was not levied.