CAG reveals under-assessment, loss of revenue in Bihar

July 20, 2011, Patna: Comptroller and Auditor General (CAG) has revealed under-assessment or loss of revenue of Rs 2,399.68 crore in various commercial departments in Bihar during 2009-10.

The CAG report for the period ended on March 31, 2011, presented by Deputy Chief Minister S K Modi in the state assembly said records of commercial taxes, state excise, tax on vehicles, land revenue, non-ferrus mining and metallurgical industries and other departmental offices of 2009-10 were test checked and the under-assessment/short levy/loss of revenue was noticed in 2,092 cases.

During 2009-10, the concerned departments accepted under-assessments and other deficiencies of Rs.1,784.41 crore in 1,892 cases, the CAG report said.

In 10 commercial taxes circles, suppression of sales/purchase turnover of Rs 766.96 crore by 17 dealers resulted in under-assessment of tax of Rs 610.40 crore, including leviable penalty, it said.

Irregular claim of Input Tax Credit (ITC) by the dealers in two commercial taxes circles resulted in excess allowance of ITC of Rs 137.17 crore including leviable penalty.

Non-detection of application of incorrect rates of tax in seven commercial taxes circles resulted in short levy of tax of Rs.28.51 crore, including interest and leviable penalty.

In Patna West commercial taxes circle, though the inter-state stock transfer of goods valued at Rs 19.09 crore was not supported by prescribed declaration forms, the tax was levied at lower rate.

This resulted in short levy of tax of Rs 84.62 lakh, the CAG report said.

The CAG report said suppression of import/purchase of scheduled goods of Rs 238.39 crore by five dealers registered in five commercial taxes circles resulted in short levy of entry tax to Rs 56.58 crore including leviable penalty and interest.