SRINAGAR: Jammu and Kashmir government has granted more than Rs 91crore of tax remission unduly to 18 unregistered industrials units in the state, audit reports say.
According to the Comptroller and Auditor General (CAG) of India in two Commercial Taxes Circles (‘M’-Jammu and ‘E’-Srinagar) it was noticed that 18 industrial units did not get themselves registered with the Commercial Taxes Department under J&K VAT Act 2005 even during the extended period of registration.
“The assessing authorities allowed remission of tax to these dealers for the period from 2005-06 to 2010-11 irregularly in contravention of the condition of the notification,” the CAG report on revenue sector and public sector undertakings for the year March 2013 says.
“This resulted in irregular remission of tax of Rs 91.13 crore and consequent non-levy of tax of Rs 91.13 crore, besides interest of Rs 80.56 crore was also leviable,” the report points out.
According to Rule of the J&K VAT, Rules 2005 every dealer registered under the J&K GST Act, 1962 had to apply for registration in form VAT-01 within three months of the appointed day without payment of any fee or security for issuance of a fresh registration to such dealer and in case a dealer fails to do so, the assessing authority had to issue notice in Form VAT-43 to the dealer to give reasons as to why his registration should not be cancelled.
The auditor also says that the assessing authorities granted remission of tax of Rs 19.51 crore to the industrial units which was not admissible on purchase and sale of finished goods, for availing input tax credit, on inflated turnover and for negative listed goods under the J&K VAT Act.
The report document further reveals that an audit check of the records of industrial units suggests observed irregularities in 117 cases, which showed authorization of inadmissible remission of tax of Rs 19.51 crore, besides irregular remission of tax of Rs 91.57 crore.
“Non-levy of tax of Rs 0.67 crore; non-withdrawal of remission of Rs 12.81 crore and grant of excess or less remission of tax of Rs 8.63 crore by the assessing authorities,” the CAG report says.