VIJAYAWADA: AP government introduced in the State Legislative Assembly on Friday CAG Reports for 2019 on the last day of winter session.
Finance minister Buggana Rajendranath Reddy tabled CAG reports according to which total revenue receipts of the government for the year 2017-18 amounted to Rs 1,05,062 crore against Rs 98,984 crore in the previous year. Of this, 51 per cent was raised by the state through tax revenue (Rs. 49,486 crore) and non-tax revenue (Rs. 3,814 crore). The balance 49 per cent was received from the Government of India in the form of state’s share of divisible Union taxes (Rs. 29,001crore) and Grants-in Aid (Rs. 22,761crore).
Test check of the records belonging to 324 units out of 1,445 auditable units under Commercial Taxes, Prohibition and Excise, Transport, Land Revenue, Registration and Stamps and other departments during the year 2017-18 showed underassessment, short levy / loss of revenue aggregating Rs 222.19 crore in 1,245 cases.
Under value added tax, central sales tax and goods and services tax declaration of turnover of Rs 86.74 crore resulted in short levy of tax of Rs 7.28 crore in eight offices.
Incorrect exemption of sales turnover of Rs 26.21 crore of textiles and fabrics in six offices had resulted in non-levy of tax of Rs 1.31 crore. Assessing authorities in nine offices did not levy interest and penalty on belated payments of tax in 26 cases that amounted to Rs. 2.48 crore.
The non-conversion of TOT dealer as VAT dealer in nine offices resulted in short payment of tax and non-levy of penalty to the tune of Rs. 49.90 lakh in 21 cases. Tax of Rs. 8.61 crore was not/short levied due to incorrect determination of taxable turnover under Works Contracts in six offices involving seven cases.
Tax of Rs 67.02 lakh on works contracts was short levied due to determination of turnover on the basis of incorrect detailed accounts as well as incorrect application of works contract provisions.
Assessing authorities levied penalty equivalent to tax instead of at 200 per cent on ITC claims based on false invoices leading to short levy in penalty by Rs. 80.95 lakh.
Non-restriction of Input Tax Credit (ITC) to works contractors and allowing ITC on ineligible goods led to excess / incorrect allowance of ITC amounting to Rs. 80.61 lakh in four offices involving nine cases.
The detailed study on transition from VAT to GST was conducted and deficiencies noticed in three out of five offices test checked. Excess claim of transitional credit of Rs. 14.57 crore was made by 113 dealers in five offices. Transitional claim of Rs 1.41 crore was erroneously allowed to three dealers though CST assessments were not completed and declaration forms for claiming concession / exemptions were not filed.
Detailed compliance Audit on “Functioning of Registration and Stamps Department” disclosed lack of coordination between Departments of Land Revenue and Registration, apart from Agricultural under which rate was adopted in respect of lands that had already been converted to non-agricultural use in nine offices of District Registrars / Sub-Registrars. This led to undervaluation of properties by Rs. 32.38 crore resulting in short levy of stamp duty and registration fees of Rs 2.11 crore.
