The Commissioner of Commercial Taxes, Cuttack, who was examining into reasons for fall in tax collection in Odisha’s Barbil Circle, has found mining lessees showing considerably low royalty value at the time of paying sales tax.
The Barbil Circle, under jurisdiction of which many mines are operated, had a collection of Rs.198.61 crore up to November 2015 as compared to collection of Rs.221.26 crore up to November 2014 registering a negative growth of 10.24 per cent, pointed out the Commissioner.
According to an analysis, it has been found that mining contributes nearly 90 per cent of the revenue of the circle followed by industry (5 per cent), works contractor (3 per cent), automobiles (1.5 per cent) and others.
It was recommended that assessment of tax from the mining lessees should be linked with royalty payment. “While taking leases of mines, the lessees pay royalty as per stated price. However, while making payment of sales tax, they are declaring a price which is considerably less than their declared price to mining department,” the Commissioner pointed out.
The disparity has affected collection of tax adversely while the collection on account of royalty is steadily increasing.
Further analysis reveals that despatch and sale price submitted by lessees with commercial tax department and mining department give different figure.
The officers of the Barbil Circle were asked to take steps for realisation of dues through attachment of bank accounts and attachment of properties. Besides, they were asked to keep close tab on business activities of fraudsters and report the same.
Published - January 19, 2016 12:00 am IST
