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CAG raps Delhi govt for loss in tax collection

Posted Date : 12-Sep-2011 , 07:41:39 am | Posted By CASANSAAR print Print

Inefficiency, under assessment, irregular claim of tax exemption and other lacunae in revenue collection system of Delhi government may have caused a whopping Rs 3,000 crore loss to the exchequer in 2009-10, according to the CAG. Rapping the government for the shortcomings, the national auditor said the tax collection would improve significantly if these deficiencies are addressed.

 

"Test checks of records of the departments during local audit conducted during the year 2009-10 revealed under assessment/short payment/loss of revenue aggregating Rs 3,140 crore in 2,696 cases," the CAG said in its report for the year ending March 31, 2010.

The CAG said it found under assessment of VAT to the tune of Rs 2,672 crore while pointing towards several cases of tax evasion and other irregularities.

"We noticed during the test check of the records of 68 units relating to VAT, an underassessment of tax and other irregularities involving Rs 2,672 crore in 2579 cases."

The report said the review on levy and collection of stamp duty and registration fee revealed a "number of system and compliance deficiencies" which had a total revenue implication of Rs 467 crore.

About collection of the stamp duty and registration fees, the auditor said there was no mechanism to ensure that both the fees are levied on all instruments which are due for registration as per provision of the laws.(PTI)

Category : Income Tax | Comments : 0 | Hits : 275

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