The Hindu Business Line : Uncollected revenue by AP Govt amounts to Rs 3,672 cr: CAG report

THE uncollected revenue by the end of 2004 amounted to Rs 3,672 crore in Andhra Pradesh and of this about Rs 1,495 crore was pending for five years, according to a report of the Comptroller and Auditor General of India (CAG).

The CAG in its report of Revenue Receipts of Andhra Pradesh Government for the period ended March 31, 2004 has brought out representative cases involving loss of Rs 267 crore.

The report tabled in the State Assembly on Friday said the uncollected revenue was in the form of sales tax, State excise duties, land revenue and taxes on vehicles, stamp duty and registration fees, electricity duty, purchase tax on sugar among others.

The total revenue receipts of the State during 2003-04 amounted to Rs 26,868.50 crore against Rs 23,002.92 crore in the previous fiscal. Sixty five per cent of this amount comprised the State's own tax (Rs 13,805.93 crore) and non-tax (Rs 3,604 crore).

The balance 35 per cent comprised the State Government's share of divisible taxes and duties of Rs 5,068 crore and grants-in-aid of Rs 4,389 crore received from the Union Government.

The increase in receipts from the Government of India during 2003-04 over that of the previous year was 37.95 per cent as against decrease of seven per cent in 2002-03 over the pervious year.

A costly miscalculation

THE CAG in its report highlights that arithmetical mistakes resulted in short levy of sales tax of Rs 17.52 crore in six cases.

Other issues relate to tax on works contract was short levied in 168 cases resulting in loss of Rs 14.87 crore. In 55 cases, misclassification of goods led to short levy of sales tax of Rs 9.49 crore. In 23 mandal revenue offices, land used for manufacture of salt was not short assessed for tax and this resulted in loss of Rs 18.52 crore.

Further, agreements under the build-operate and transfer system and lease deeds were misclassified resulting in deficit stamp duty and loss of registration fee of Rs 6.54 crore.

Test checks of records of loans sanctioned to various corporations and organisations revealed that interest due amounting to Rs 46.98 crore was not paid by loanee organisations.

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