CAG raps Delhi govt

The Comptroller and Auditor General (CAG) has rapped Delhi Government for various irregularities and lacuna in collection of sales tax, VAT, stamp duties and registration fees in 2009-10 which have resulted in loss of crores of rupees to the state exchequer.

The CAG in its report for the year 2009-10 said granting of irregular claim of either exemption or concessional rate of tax without following laid down procedures have resulted in short payment of taxes to the tune of Rs 1,262 crore.

"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.

"During scrutiny of assesment records of VAT, we observed several cases of claim of concession/exemption," the CAG said in the report.

It said stamp papers worth Rs 1,243 crore were lying unsold in the Delhi treasury for more than 12 years which could be misused.

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.

On collection of stamp duty and registration fees, the concerned department has failed to coordinate with various offices to stop the leakage in the tax collection system.

The auditor also asked the government to consider fixing time frame for finalisation of cases of undervaluation.