Report of the Comptroller and Auditor General of India on State Revenues for the period ende…

This audit examined the revenue collection and administration of the Government of Karnataka for the period ended March 2024, focusing on Commercial Taxes, Stamps and Registration, State Excise, and Transport Departments.

Government of Karnataka (Departments of Commercial Taxes, Stamps and Registration, State Excise, and Transport)

• Total observations of non/short levy of tax and revenue foregone amounting to ₹ 169.18 crore.
• Short levy of Stamp Duty and Registration Fee due to misclassification of Agreements of Sale: ₹ 18.84 crore.
• Short levy of Stamp Duty and Registration Fee on Joint Development Agreements: ₹ 32.82 crore.
• Short levy of Stamp Duty and Registration Fee due to non-disclosure of facts: ₹ 14.10 crore.
• Short levy of Stamp Duty and Registration Fee on General Powers of Attorney: ₹ 15.06 crore.
• Short levy of Stamp Duty and Registration Fee due to improper execution of release deeds: ₹ 14.20 crore.
• Short levy of Stamp Duty due to improper classification of mortgage deeds: ₹ 6.69 crore.
• Short levy of Stamp Duty and Registration Fee due to undervaluation of Undivided Share: ₹ 9.00 crore.
• Short levy of Stamp Duty and Registration Fee due to undervaluation of properties: ₹ 4.05 crore.
• Loss of revenue on Additional Excise Duty due to delay in adopting revised Declared Price: ₹ 58.13 lakh.
• Potential revenue loss due to non-collection of Green Tax between 2019 and 2024: ₹ 90.46 crore.
• Potential revenue loss due to non-collection of Road Safety Cess between 2019 and 2024: ₹ 4.68 crore.
• Non/short realization of revenue due to inconsistent tax rates for contract carriages: ₹ 1.54 crore.
• Short levy of tax due to misclassification of leased Private Service Vehicles: ₹ 82.63 lakh.
• Recommendation to strengthen scrutiny of high-risk areas like valuation of non-monetary transactions.
• Recommendation to enable system-level tracking of demands from notice issue to recovery status.
• Recommendation to institutionalize cross-verification of returns with third-party data sources.
• Recommendation to investigate manual fitness tests and accelerate establishment of Automated Testing Stations (ATS).
• Recommendation to build controls in the VAHAN system to monitor Green Tax dues.
• Recommendation to mandate regular reviews of the VAHAN database to identify vehicles with expired certificates or permits.

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