CAG exposes Rs770 crore loss of revenue to Karnataka

Under assessments, non and short levy of taxes and other irregularities in commercial taxes, state excise and motor vehicle taxes have caused a huge loss of Rs770 crore to state exchequer in the financial year 2009-10.

The report of the comptroller and auditor-general (CAG) of India has brought to light several cases of gross failures in assessment and collection of tax from various sources. The CAG test checked records of 365 units before compiling its report.

A large number of uncorrected error returns were found in the database, including 4,138 where the tax credit brought forward from previous return was shown in excess by Rs448 crore. Arbitrary determination of market value without adopting all norms stipulated for valuation by the Central Valuation Committee resulted in lower determination of market value and loss of revenue of Rs66 crore in grant of government lands for various bodies. Grant of land at concessional or incorrect rates resulted in loss of revenue of over Rs10 crore. Regularisation of lands under unauthorised occupation within municipal limits without following appropriate guidelines resulted in loss of almost Rs72 crore.

Regularisation of land under unauthorised occupation in favour of ineligible persons and in excess of what the applicants had applied for resulted in loss of revenue of Rs50 crore.