H6
R. J. Chelliah
M. C. Pnrohit
NlFPP Library
H ill
7435
&"
1/ffiRARY
Acc N< ^ ..7 4 :3 5 ..
Published by
V. S. Renganathan, Economist (Publication), National Institute of Public Finance and Policy,
18/2 Satsang Vihar M arg, Special Institutional Area, New Delhi-110067
Project Team
R aja J. ChelliahLeader
Mahesh C- Purohit
Research Assistance
G autam Naresh
K .P. Thariathu
T.K. Mishra
Survey on Commodity-FIows
V.S. Renganathan
G autam Naresh
PREFACE
An
The
New Delhi
R J
CHELLIAH
We received
He
In
The Study
Study Team.
of all the
We shall be
R J CHELLIAH
M C
PUROHIT
Page
Preface
Acknowledgements
1
v
vii
Introduction
Terms of Reference
Modalities of the Study
1
1
Interim Report
Introduction
Summing up
10
Introduction
10
13
16
20
Summing up
24
26
Introduction
26
Rate Structure
30
32
Taxation of Inputs
35
36
Slimming up
40
Annexures
5
81
Introduction
Objectives of Reform
81
81
Point of Levy
82
M ultiplicity of Rates
92
Treatment of Inputs
93
Summing up
Annexures
41
99
101
118
118
120
Exemption Limit
T2I
Self-Assessuent
129
133
Introduction
133
133
138
156
Checkposts
Performance of the Enforcement
158
16 O
167
Registration of Dealers
168
171
172
173
176
Structural Ci-<~r-o-
178
Summing up
179
Annexures
181
Information System
228
Introduction
228
221
230
237
Completed Assessments
241
Consolidated Form
242
242
243
246
Summing up
248
249
249
25*
254
258
and
Information System
270
Re f e r e n c e s
272
'
7 .1 3
153
7 .1 4
155
7-. 15
161
7 .1 6
164
A .7 .1 7
174
Ail .1
204
in
205
India
206
A .7 .4
207
A.7 .5
208
A.7 .6
209
A.7 .7
210
A.7 .8
211
A.7 .9
212
A .7 .10
213
A .7 .11
214
A .7 .12
215
21 6
217
A.7 .15
Estimate
Sal.as ,r,ax Evasion/
Avoidance on Automobile spare parts
in Tarr.il
216
A.7 .16
219
A.7 .17
220
A.7 .16
221
A.7 .19
222
A.7 .20
223
A.7 .21
224
A .7 ..2 2
A.7 .23
226
A.7 .24
227
A.7 .13
A.7
.14
1.
INTRODUCTION
2.
3.
4.
For
However, a brief
2.
Introduction
The sales tax was first introduced in Tamil Nadu
in 1939 , primariT/y to uiake up for the loss in revenue
arising as a result of Prohibition.
It was a multi-point
All
But in
To
In 1956, an additional
a change-over to a
mounting pressure
single-point system,
The general
In
In 1972, Mr. S .F .
The multi
to
They ares
It came
Revenue Department.
AST
Act, 1970.
TNGST
The MST
Summing Up
To conclude, the
TNGST
has continued in
TNOrST
3.
Introduction
The sales tax has come to occupy an important
place in the fiscal structure of the Indian States.
Its
By 1979-80,
was the only State having more than 40 per cent of its
revenue from the sales tax; but the position has changed
over the years.
than 60 per cent of their own tax revenue from this tax,
four States between 50 and 60 per cent, and another
six States collected slightly less than 50 per cent.
The upsurge in the fiscal importance of this
tax is reflected in the compound growth rate of the
tax^w hich is between 15 and 20 per cent over the years
in most of the States (Table 3 .2 ) .
the other State taxes has been much lower than that of
the sales tax (Purohit, 1976).
11
TABLE
)
3..1
Andhra Pradesh
issam
Bihar
Sujarat
Haryana
3221
1273
2147
Himachal Pradesh
Jammu & Kashmir
Karnataka
Kerala
Madhya Pradesh
'
102
1748
1325
2040
Maharashtra
Manipur
Meghalaya
Nagaland
Orissa
Punjab
Rajasthan
Sikkim
Tamil Nadu
Tripura
Uttar Pradesh
West Bengal
All States
Sales
tax
revenue as
per cent
of Sta
te s re
venue____
1979-80.
State's Sales
own tax tax
revenue reven
ue
Sales tax
revenue
as per
cent of
State's
own tax
revenue
49271
7206
23359
44888
19730
22022
3508
15546
28937
9005
44.70
48.68
66.55
64.46
45.64
10
497
492
502
9 .8 0
28.43
37.13
24.61
2867
2900
40486
29080
32025
1113
1280
19978
16264
16104
38.82
44.14
49.35
55.93
50.29
98085
258
404
344
4210
62643
128
197
150
6595
63.87
49.61
48.76
43.60
58.83
12979
13686
54
32506
155
42.00
62.67
21.34
66.84
47.84
30252
28107
321109
53.80
60.09
56.64
962
239
546
29.87
18.77
25.44
mmm
645
199
30.85
1966
1462
503
322
25.58
22.02
3331
1382
41.49
30906
21679
253
48636
324
5004
3615
27878
1635
1253
8542
32.67
34.66
3 .6 4
56227
46776
566914
Sources: 1
s fi
* #S # S s
? I rs rs
kS. *(d . *
'i '5 , s . . . - 4 > ~
o
o o
<x>
t.
-J
k
O
I t
/*
o
Vi?
r^> -*
*>-
vT v *
fc*
a*
.-*
jj . .
{t
v~
\C J"
-S
~ 52
-^*
>L^ i v
UT o > M
-
| S I | s | s a s a ~s
r- '
t
-*u i
fO -*
*
vqy
s*
<*6
&
o
t 9
O 9*
<
-.
e>
vp
0
i
U'
a
**
+
o
r:
i
*
o
<*
o
a*
vo
\p
Of
HM
* > -*
'
* *
O im
cao
2 g
\T
t*
vj*
ot
U>
OS
4^
Os
co
uv
AW
-4
to w
O vn
O ^
VO*
* *
b -4
2 8
vP
re
N>
*>*, * > -*
IV) -* ~J -1
MP
^0
A
Vf
-**
(6 0
O iS
*4
S 3
w )w
M ->
O xt>
*
?;
v
bJW **
0
1
w g
*J +
--CC
$ 3
<00
o <
<
8
0
<0>
A
VO
4 u
!*
$
U*
5
01
iS
3
M
91
N2
U
os
u>
S<t
? 8
-s
4*
J lU L ^ r& O
, r r r
r*
**3
C iw
:?
3
*
w . ODIO
NW
Vilm
.- f. S^ S^ S S I__^S__" l 8 S S g #^ -- 8 2
C
4
&
** 5- i+>-+
-*
O p
CO Ce
S
I
-*
Co
vn
yi
v
VVX
N
*Ue CMXl M
^o**
*** 'f
W
* U
CiPMn k
j>
,o^kW> *'6' W M
3
*^ s O 0
- s - s E
ib (h
S o
&
O
CD
>
4>
Cd
w
I * I
.S o l S i ) ' M A A J
t t f - S S '^ S 'a s
0
ij
o o v J o t v04k c a n
* * I I *
^ A K )
W O
viicp w u > o i m
t I
0
i8
CO
01
v>
a
*
O
Vg
<Jl
Ml
A CO * J n J k u a S
* 5
^m Tfc,|-
*,-
o
* <
Ot>
**L
O '- r
E
m.
O
%
S/ $M
5
0
'
TB
u
b i
jf
* C>
<+ p
o
S* t
6'|w w
l *5
^w
<i> <*
CnS>
a ?
'r>'''*w
o ^
**
o
**
o
*
V>
a
ui
-* tt
r^
* 5
8 ?*.?*- V J
ri
* s a
* \k m
a
vn
to Rs 8 1 .8 5 crore in
3 .3 ).
to
TABLE
33
(n
(2)
Motor
spirit
tax
13) .
Total
sales
tax
revenue
State's
ovm tax
revenue
t. A . K^
V.v /t
(4)
State s
own tax
revenue
net of
sales
tax
(5)
(6)
1960-61
1961 -62
1962-63
1963-64
1964-65
14.29
15.01
18.79
20.09
25.66
2.28
2.68
3.11
4.85
6.31
2.55
2.77
2 .9 0
2.08
3.33
19.12
21.26
24.80
27.02
35.30
22.74
25.97
33.72
42.42
43.14
41.86
47.23
58.52
69.44
78.44
1965-66
1966-67
1967-68
1968-69
1969-70
29.95
42.05
41 .18
45.22
52.91
61 .05
73.46
85.91
98.08
140.44
7 .1 5
1.93
10.16
10.36
12.39
3.85
4.79
5.14
5.54
6.85
40.95
48.77
56.48
61 .12
72.15
92.62
97. C3
119.81
128.00
132.32
13.79
15.82
20.82
28.87
81.85
98.97
114.02
132.25
190.75
148.85
191.53
228.65
273.12
305.68
155.94
165.06
176.80
217.36
234.12
33.27
42.42
42.90
49.84
62.45
7.01
9.69
10.00
13.35
18.57
19.72
21.86
22.16
26.32
51 .67
49.06
63.33
66.88
60.17
67.00
92.56
114.63
140.87
114.93
211.27
230.55
243.04
294.18
325.06
107.83
115.80
118.37
153.21
161 .30
319.10
346.35
361 .41
447.39
486.36
1970-71
1971 -72
1972-73
1973-74
1974-75
1975-76
1976-77
1977-78
1978-79
1979-80
18.11
28.20
Sources: 1
Ent ertsinaei.t
t&s
Total State
Bnrnue
0-30
State excise
Electricity
duty
V..K
9fcfc-Cr
Motor falsies
tai
Sa.ee
-aiae
i b '<ener&..
Bales tajc
*'? Central
'>&! tax
( t Saxes tax
on *otor
spirit
\jtai6 reverses
incoe ta
k g n cultural
? a x
0.6C
0.60
O.feC
1969
70
1970
71
5.9fc
0.14
1.3*
1 .40
3-06
3.4
23-56
Sources:
1.15
(-)0.2C
2C.9c
-
1.35
11
1972
o.oz
4.52
o.ot
(-)2.0C
1971
72
7.30
2.50
2.0C
2.80
1978
79
1 977
78
2.
7.0C
-1' T * T~
5.60
3*00
4.0C
1976
77
HB1, l m r ~
24.49
1.72
3.50
2.10
1975
76
9.51
2.0C
11.26
JLL&
1974
75
^ fltjfr
1.
3.35
1 .46
1.89
1973
74
lQbilitlon of Add.tisn^ f a u r r i
(1968-69 to 1979-80)
T A *U
8.90
5.00
2.05
1.45
1979BO
This is proved by
One of the
Another study
attempted for each tax and every State for the period
1960-61 to 1970-71 shows that the elasticity coefficient
was ranged between 1.099 in Kerala and 1.871 in Karnataka
in the case of the sales tax but ranged between (-) 1.496
irl Kerala and 2.039 in Maharashtra in the case of the
pslssenger and goods tax (Purohit, 1978).
The results of
The coeffi
This might
However, it is important
TABLE
3 .5
States
(1)
Buoyancy
Coefficients
(2)
R2
U)
Elasticity
coefficients
^2
(4)
(5)
Andhra Pradesh
1.53^
(28.879)
0.980
t . 480
( 32.321)
0.984
Assam
1.344
(1 9 .893)
0.961
1.282
( 1 8 . 308 )
0.954
Bihar
1.469
(25.683)
0.976
, 1.358
(24.105)
0.978
Gujarat
1.593
(2 7 .6 9 9 )
0.980
1.357
(23.776)
0.972
HaryanaA^
1.995
(1 0.4 0 4 )
2.811
(4 .5 1 5 )
0.915
1.862
(9 .7 1 6 )
0.904
0.744
2.242
(3.425)
0.626
1.818
0.955
1.567
(15.499)
0.934
Karnataka
1.685
(3 3.1 4 9 )
0.985
1.467
(32.725)
O .984
Kerala
1.385
(33.119)
0.989
1.173
(31.411)
0,984
1.6 3 2
0.964
1.484
(19.165)
0.956
1.456
(4 5.7 8 7 )
0.992
1.309
(35.227)
0.986
0.963
1.303
(21.259)
0.964
Himachal P r a d e s h ^
Jammu & Kashmir
(1 8.917)
Madhya Pradesh
Maharashtra
(2 1 .482)
Orissa
(21 .030)
Cont d
(
TABLE
18
3? 5
)
(Contd.)
P u n ja b ^
1.482
(1 9.173)
0.974
1.360
(17.575)
0.968
Rajasthan
1.704
(17.974)
0.950
1.674
(17.669)
0.946
Tamil Nadu
1 .705
(36.582)
0.989
1 .547
(23.117)
0.9&5
Uttar Pradesh
/ 1 -705x
(2 2.8 4 9 )
0.968
1.554
(24.945)
0.973
West Bengal
1.402
(3 7.6 0 9 )
0.988
1.259
(32.193)
0.984
All States
1.504
(3 7.0 2 9 )
0.988
1.323
(56.965)
0.955
Notess
2 /
@@
* ! .9
Qcatr&l
sls
I ks
f!<jtor
s p ir it
(If)....
vehicles
t& K ,
0.918
8.190
8.190
2.217
2.229
Motor
1.261
0.32#
O^tJ
0.888
0.888
1 408
1 '$4 $
1 . 413
1. 696
2.0204
2 ,Of04
vVfvf
34'4^
0.367
0.463
1.270*
1,446s
I '. 'W
'3.085,
Vi IS#:;
1.71)
1. 1 #
ti#8|
0.649
0.993
0.833
1.044
4-:. *46;
'f
.1439
1*436
1.236
1.392
1.607j-1. 80rj
1.470"
1.567**
0.695
V..Q27-
1.221
i.495;
2.091
8.093
1.281
2;..377.:
2 ,67'2
(viM 1'
2,066
:2r;667:
2.8?8
0.143$/
,0.-274"
Sleotrieitjr
fluty
bV{98
o, 7.7
0.130
2.905
2.905
StsU
sited8*
OttxH
1,684
1.699
1.801
'.SMW
2.319
.8<64flc
| M :
; ,oji n
\%
J
OvfeOO
2.0*5
mm
mm
#P88&
1.564
C ost
0,463***
1 ,346**
2.377
2.37i
t .018
.1 ,201:
O.6 3 2 V
"1-/.-Trl
1Y9T7
fctaV'
2*19*
0,909
.5. to-
1.294
1.294
0.846
0.9&1
0,758^
0,917
0*387
1.332
1.367
i .113
2.252
1.461
1.575
0.982
1.212
1.194
1 ,t;i5
0,881
1 J43t
0.956
1.247
1.348
1*501
0.826
0.930
0.496
1.309
.0,943
1.399
1.627
2.096
0*962
1 *041
1.409
1,741
0.986
*.011*
t'531
1,89
1.396
1.479
0.982
1.192
5.119
I :lil
1.450
1.450
1.343!
1.216
1.118
1.510
1.713
1.798
0-901
1.845
1.065
t , jt f
0,9B0
1,495
1.21?
1.246
1,276
1*3$B
1.026
1.223
0.991
1.485
.1 .tas
0.718
0.887
U43&
1,644
1 161
1,340
<-)0.423
2.19*
fcfcffl
0.797
1.256
1.282
1.760
0.754 '
0.949
0.416
0.704
1.758
1.758
1.087
0.950
1.948
1 .948
1.334
1.732
1.038
1.321
1 .643
1.756
1.190
0.501
2.193
1.190
1.026
1.312
0.818
1,6 22
0,367
1.393
2.2v6
1.701
1*0$4***
K W ***
.1. too
1 *m
20
components,
v i z .,
CST.
This is partly
This could be
is to
ratio with the actual tax ratio w ill indicate whether the
State
or more, or l e s s .
For carrying out the above exercise, the sele
ction of the capacity factors is crucial.
We in it ia lly
( i i ) the proportion of
urbanisation (U ).
with the total tax-income ratio (T/y ) showed that Y/P was
a very important factor.
Hence, we finally
= 0 .5 3 4
(3.5960)
SEE = 1 .0 6 7
( - 0.3864) (1.4427)
o
0 5 4 8 2 - llf p,,r F
C A-1 ^
" "
_ A + 0.0822"ttJ)
/
Ac
(2 .5 5 1 3 )
o..
r ,t& s ; 8 s r . .
>
TABLE
3.7
State
Index A
Tax effort
Andhra Pradesh
7 .5 0
6.51
1.15
Assam
4.56
4.46
1 .02
Bihar
4.63
4.92
0.94
Gujarat
7 .1 4
7.72
0.92
Haryana
8.1 0
6.47
1 .25
Himachal Pradesh
3 .90
4.41
0.88
4.56
5.86
0.78
Karnataka
7.87
1 .07
Kerala
8.22
7.33
5.88
Madhya Pradesh
6.31
6.05
1 .04
Maharashtra
7 .7 4
8.33
0.93
Orissa
4.32
Punjab
7.52
4.84
7 .4 0
0.89
1.02
Rajasthan
5.74
6.17
0.93
Tamil Nadu
8.14
7 .85
1 .04
Uttar Pradesh
5.47
5.74
0.95
West Bengal
5.26
7.03
0.75
1 .40
TABLE
3.8
State
Index A
Tax effort
Estimated
Andhra Pradesh
3.30
3.46
0.95
Assam
1 .91
1 .39
1 .0.1
Bihar
2.54
2.29
1.11
Gujarat
4.68
4.60
1 .02
Haryana
3.60
3.16
1 .14
Himachal Pradesh
1 .33
2.13
0.62
1 .49
2.79
Karnataka
3.98
3.93
0.53
1 .01
Kerala
4.76
3.23
1 .47
Madhya Pradesh
3.16
2.98
1 .06
Maharashtra
4.97
5.18
0.96
Orissa
2.45
1 .24
Punjab
3.41
1.97
3.62
Rajasthan
3.18
2.94
1 .08
Tamil Nadu
4.99
1 .09
Uttar Pradesh
5.43
2.90
2.92
0.99
West Bengal
3.02
4.05
0.75
0.94
taining
States.
By applying the
In
Besides,
1J
TABLE
3 .9
Tax
Tax
Effect- Tax po- Index of Rankrevenue
base*
ive rate tential use of
ing in
(Rs lakh) (Rs lakh) in
(Rs lakh)tax po- terms
(per
tential of
cent)
Col. (2 )/C o l .(6
C o l .)(5 )
State
(2 )
(1)
(3)
(4)
(5)
(6)
(7)
3957
486860
160403
468380
443467
180215
3.05
1 .5 0
2.22
3.71
2 .20
13875.51
4571.49
13348.83
12638.81
5136.13
1.0689
0.5263
0.7797
1.3027
0.7704
6
14
12
4
13
Karnataka
Kerala
Madhya Pradesh
Maharashtra
Orissa
11846
11257
10090
35842
3360
363587
247527
414003
926253
387887
3.26
4.55
2.44
3.87
0.87
10362.23
7054.52
11779.99
26398.21
11054.78
1.1432
1.5957
0.8550
1.3577
0.3039
5
1
10
3
15
Punjab
Rajasthan
Tamil Nadu
Uttar Pradesh
West Bengal
8419
8409
21087
23187
15008
301043
294270
473850
911167
632640
2 .80
2.86
4.45
2.54
2.37
8579.73
8386.70
13504.73
25968.26
18030.24
0.9813
1.0027
1.5615
0.8929
0.8324
8
7
2
9
11
Andhra Pradesh
Assam
Bihar
Gujarat
Haryana**
14832
2406
10408
16464
4.
Introduction
Ihe existing structure of sales taxes in the
State is governed mainly by the Tamil Nadu General Sales
Tax Act, 1959 (TNGST).
It is clear
from the table that the share of revenue from the multi
point goods has declined from about 60 per cent in
1959-60 to 24 per cent in 1972-73 and to a small propor
tion 12 per cent only by 1979-80.
In addition to the General Sales Tax (GST), the
existing structure provides also for the levy of an
Additional Sales Tax (AST) under the Tamil Nadu Additional
Sales Tax Act, 1970.
TABLE
4.1
(1)
1959-60
1960-61
1961-62
1962-63
1963-64
1964-65
1972-73
1973-7 4
1974-75
1975-76
1976-77
1977-78
1979-80
Total sales
tax revenue
under TNGST
excluding the
AST and the
surcharge
Col. (1)
as per
cent of
Col. (2)
5.07
5.98
6.56
7 .4 8
9.41
11.76
52.41
66.35
97.54
106.12
117.98
130.38
18 1.6 8
12.66
14.18
15.49
18.59
18.89
25.69
81.01
92.69
130.09
142.73
146.66
157*11
jkwL________
40.04
42.17
42.34
40.23
49.81
45.77
64.69
71.58
74.97
74.35
80.44
82.98
87.84
In respect of the
ted t^ 11shift it
on to the consumers.
In addition t ' the AST, a surcharge has been levied
with effect from June 1, 1971, under the Tamil Nadu Sales
Tax (Surcharge) Act, 1971.
TABLE
4.2
Year
Surcharge
Yieli"
As per cent
(Rs crore) of TNGST
revenue
1972-73
2.71
3.15
2.19
2.55
1973-74
2.83
2.89
2.56
2.61
1974-75
6.77
4.82
3.58
2 .55
1975-76
9.25
5.93
3.96
2 .5 4
1976-77
14.25
8.63
4.15
2.52
1977-78
15.32
8.67
4.37
2.47
1978-79
17.76
8.12
5.46
2.51
1979-80
19.85
8.48
7 .4 5
3.18
In 1979-80
Commodity-wise
Thus,
Other food
gas, toilet
Also,
These include
sewing
Lubricants
surcharge cannot
base.
would thus remain valid even i f the AST and the surcharge
is not considered together.
The rates
pure ghee are taxed at higher rates but tea leaf and
coffeepowder are taxed at relatively low rates.
The
Lifts
Similarly, floor
presented
Only
This concession is
covered.
bought
( i i i ) paints,
First, certain
(i)
(i i )
(iii)
(iv)
(v)
(vi)
(v ii)
(v iii)
(ix)
(x)
(xi)
U ii)
(x i i i )
(xiv)
(xv)
(xvi)
(xvii)
(x v iii)
(xix)
(xx)
Junnadi goods
Honey and bee wax
Korai grass
Coconuts and coconut husk
Bangles (not by any metals)
Fire wood
Hay,- green grass, rice bran, wheat bran
husk, dust of pulses and grams
Jaggery and gur
Hurricane lights
Non-pressure kerosene stoves
Lawrel oil
Bandage cloth and gauze
Condoms
In
(iii
(iv
(v
(vi
(vii
(viii
(ix
(x
In this
These include
The
The
The
Share to total
Tax
TNGST revenue
revenue
(per cent)
(Rs lakh)
Commodity
10.95
2.
76.35
57.25
3.
33.25
4.77
4.
27.36
3.92
5.
Pood grains
27.18
6.
Hardware
21.36
3.89
3.06
7.
Cotton
19.04
2.73
8.
Kerosene
2.62
8.21
9i
10.
18.27
18.06
16 .2 0
11.
Tea
2.11
12.
14.77
13.61
13.
Cotton yarn
13.46
14.
Oil seed&
10.36
1.93
1.48
15.
9*45
1.35
16.
Wireless receivers
8 .8 0
1.26
17.
18.
Oil cakes
8.31
1.19
7 .57
1.08
Vegetable products
6.83
0.97
Coffee
5.53
0.79
19.
20.
2.59
2.32
1.95
Tax
revenue
(Rs lakh)
Commodity
Share to total
TNGST revenue
(per cent)
1.
Motor vehicles
258.08
13.66
2.
121 .17
6.41
3.
4.94
4.
Food grains
93.25
76.06
5.
Cotton y a m
63.89
3.38
Cement
57.83
3.06
52.51
2.78
8.
Hardware
40.37
2.14
9.
39.70
2.10
10.
Vegetable products
39.16
2.07
11.
Coffee
37.33
1.98
12.
Tea
36.89
13.
35.07
1.95
1.86
14.
Cotton
31.32
1.66
15.
16.
24.35
21.87
1.29
1.16
17.
18.
Oil seeds
21.69
1.15
21.24
1.12
19.
20.
Oil cakes
20.70
1.10
Wireless receivers
20.08
1 .06
6 .
Source:
4.03
S i.
No.
Commodity
Tax
revenue
(Rs lakh)
Share to total
TNGST revenue
(Per cent)
1.
Motor vehicles
865
12.63
2.
General goods*
558
8 .1 4
3.
Others*
350
5.11
4.
Electrical goods
339
4.95
5.
6.
Oil cakes
220
3.20
Sugarcane
216
3.15
7.
Cotton yarn
210
3.06
8.
2.88
9.
197
188
2.55
2.75
10.
Kerosene
11.
Mineral oils
175
166
12.
Chemical fertilisers
144
2.09
13.
138
2.01
14.
1.88
15.
129
118
1 .72
16.
Stationeries*
116
1 .6 9
17.
18.
Cement
112
1.63
Groundnut
1.59
Cotton
109
108
1.57
107
1.57
19.
20.
* Multi-point
commodities
Source:
2.43
Same as Table 4 .3
Commodity
Motor vehicles
2.
Tax
revenue
(Rs lakh)
Share to total
TNGST revenue
(per cent)
1728
9.52
Cotton y a m
762
4 .2 0
3.
685
3.77
4.
General goods*
601
3 .3 0
5.
Others*
600
3 .3 0
6.
581
3 .2 0
7.
Mineral oils
526
2 .9 0
8.
Lubricating oil
525
2.89
9.
Cement
516
2 .84
10.
Cotton
515
2 .84
11.
Chemical fertilisers
473
2.61
12.
2 .59
13.
Kerosene
471
456
14.
Sugarcane
416
2 .29
15.
16.
Electrical goods
386
2.12
All machineries
350
1.93
17.
18.
Vegetable oils
349
300
1.93
19.
20.
Tea
284
276
1.56
Groundnut
Tinned, canned packed food
2,51
1.65
1.52
item
Commodity
code
Revenue
derived
(Rs lakh)
(D
(2)
(3)
Percentage
share to
total TNGST
(4)
nr-^ i
M i
o
1.
Motor vehicles
103
1944.
9.35
2.
Lubricating'oils
140
1129
3.
404
885
5.43
4.26
4.
Cotton y a m
403
3.81
5.
Sugarcane
150
791
770
6.
Kerosene
129
697
3.35
7.
Chemical fertilisers
123
623
3 .0 0
2.
8.
183
621
2.99
2.(1
9.
Cement
128
543
2.61
10.
230
2 .4 0
2 W
11.
Machinery
169
499
488
2.35
12.
Mineral oils
141
472
2.27
&
13.
Vegetable oils
463
14.
165
206
386
2.23
1.86
15.
16.
General goods
628*
383
1.84
121
355
17.
18.
Electrical goods
134
350
1.71
1.68
Tea
130
279
1.34
19.
413
275
1.32
/ ic
20.
Electrical instruments
135
269
1.29
^ 17
3 - 14
3.71
Cont d . . . .
SL
6^
* &
_i
I . *1 i*
'(3
|
i-
1' V.-'
' 1>
i a
I- \%
(1
(1)
(2)
(3)
(4)
21 .
Others
699*
266
1 .28
22.
Paints
199
264
1.27
23.
Soaps
131
350
1.68
24.
Foods
192
345
1.18
25.
Cotton
402
234
1 .12
26.
Radio, T .V . Sets
108
228
1 .10
27.
172
214
1 .03
28.
Groundnut
200
0.96
29.
Bicycles
407
132
182
0.88
30.
Jewellery
634*
182
0.88
31.
Cinema equipments
109
0.86
32.
Hardware
630*
179
178
33.
Oil seeds
406
0.85
34.
Coffee
127
177
176
&.85
35.
Oil engines
200
175
0.84
36.
J aggery
667*
131
37.
Metals,
639*
120
0.63
0.58
38.
Frinted matters
645*
116
0.56
39.
40.
Packing materials
620*
106
0.51
642*
97
0.47
41.
42.
Chillies
617*
85
0.41
Engineering goods
624*
85
0.41
621*
81
0.39
629*
80
0.39
minerals
0.86
45.
Footwear
625*
68
0.33
46.
Tapioca products
657*
65
0.31
Cont' d
; St aces
(Aa in 1981-82)
(Per cent)
Items
(1)
Iamil Andhra
Nadu Pradesh
(2)
(3)
Kar Ker
nata ala
ka
(4)
(5)
Orissa
Pondi
cherry
(6)
(7)
22/
1* /
4LS3 2 /
4FP
4-5
8
n
6 .5
6 .5
3
6
8. S
4FP
4LP
10
8LS
3MP
2. Paddy
3 . Atta, maida
and suji
oS/
is/
02/
3. Ghee (pure)
&
5. Fresh fruits
10^
4MP
10
8LS
3MP
51/IP
6MP
10
8LS
3MP
Cont d . . . .
(1 )
(2 )
(3)
(4)
47.
Stationery products
654*
56
0.27
48.
Tamarind
656*
49.
Turmeric
50.
Building materials
659*
611*
47
46
38
51 .
Handmade soaps
631 *
38
0.22
0.21
0 .19
0 .18
52.
Readymade garments
647*
30
0.14
53.
Polyester fabric
644*
29
0.14
54.
Poultry feed
643*
28
0.14
Source:
Computer output
of the Commer
cial Taxes
Department,
Tamil Nadu.
(2 )
(3)
(4)
(5)
(6 )
8 . Eggs
9. Sugar
8LS
3MP
2MP
4LS
15. Pepper
5MP
1 6 . Other spices
8LS
8
8LS
8LS
6
6
6MP
6
6
(1 )
1 0 . Khandsari sugar
1 1. Salt (when sold
in sealed
container)
8
10
6
6LP
8
(7)
5MP
4
4MP
10
4LS
5MP
4MP
10
4LS
3MP
4
5MP
10
4MP
5MP
DR
3MP
r
G
3LS
3MP
3. Other stationery
articles
5MP
4MP
5MP
8LS
3MP
4. Instrument boxes
and maps
5MP
4MP
5MP
8LS
1 Fire-wood
4*2/
4MP
20 . Kirana goods
III.
1 . Students' exer
cise books
IV.
3
3MP
U)
(5)
(6)
(7 )
8LS
10
15
3MP
5. Charco a1.
5MP
4MP
4LS
6 . Furnace oil
4
3MP
3. Kerosene
(2 )
(3)
i ) ^'pcrior
i i ) inferior
4. Cooking gas
7 . Candle
5MP
4MP
5MP
8LS
8LS
V. Match Boxes
4^
4MP
5MP
2
2
10
8
8
8
8LS
8LS
8
10
7-13
3MP
5
16
12
8LS
V I. Toilet Articles
1. Tooth pc ste/powder
3. Toilet 'rorp
&
4. Hair oil
12MP
12
6^ /
6
12
l2
r.
G
2. Washing soap
6 . Other shaving
articles
5
5
8 . Bootpolish
4MP
9. Tooth brush
c
O
12
12
10
12
3MP
5MP
4LS
3MP
2. Re&dyix'r.ae garments
5
3MP
5MP
&
8LS
10
3MP
3. Footwear
5 .
6^ /
7. Cosmetics
V I I . Medicines
1. Cotton hosiery
products
3MP
(1 )
(2 )
(3)
(4)
(5)
(6)
(7)
1 . Bread
2 . Calces and pastries
5MP-^
1 . 5MP
5MP
8LS
3MP
io/
6
6
10
8
6
8
10
5
8LS
8
4
3MP
4. Aerated water
5. Country liquor
6 . Foreign liquor
5M P "
6
25
30
50
20
50
25
30
50
E9
20
8 . Bhang
5MP
3MP
5MP
2.5
25
9. Ganja
1 0 . Opium
4MP
3MP
25
4MP
3MP
1 1 . Ice
5b /
8
8
5
\ W 8
3MP
5, /
5*/
12
12
12
6
6
6
CD
CD
50
4MP
4MP
SKIP
1
2
2
2
93MP
0.5
4LS
3MP
1
1
3. Articles made of
gold and silver
5MP
5MP
4. Articles made of
ivory
5MP
4MP 13LP
3MP
5MP
12
15 '13LP
3MP
(2)
(3)
10
(1)
6. Synthetic gems and
stonec
(4)
(5)
(6)
(7)
8LP
3MP
12LS
3MP
10
13LP
5MP
5MP
6S O /
P
O
1 0 i/ 8
15
12
10^/ 13LP
3MP
8LS
3MP
8LS
3MP
8LS
3MP
8LS
3MP
10
10
12
15
12
13
12
1 0 */
(1)
16. Refrigerators and
air-conditioners
(2)
(3)
(4)
(5)
(6)
(7)
15
12
15
15
16
12
12LS
3MP
17. Furniture
a) Wooden furniture
4MP
15
12
15
12
1 6LS
12
10
4MP
15
12
1 6LS
d) Aluminium fur
niture
10
4MP
15
15
12
15
15
16
12
15
12
15
15
16
12
15
12
15
15
16LS
12
15
12
15
12
15a 8 /
(3)
(4)
(5)
(6)
(7)
15
12
15
15
16
15
15
12
15
10
8LS
10
10
12
9
8
8LS
9
3MP
8LS
3MP
(2)
(1)
22. Heavy motor vehicles
of all kinds (exclu
ding motor car,
chassis of motor
vehicles, tyre and
tubes of buses and
trucks)
23. Motor cars
9
4MP
27. E .P .N .S .
4MP
5MP
goods
15
12
12
15
16LS
5MP
10
15
4MP
16LS
3MP
15
12
15
15
16
12
15
12
15
15
16
12
10
3MP
10
1 6LS
9
5MP
12
12
12LS
3
3MP
10-8
12LS
(2)
(3)
(4)
(5)
(6)
15^/
6^
12*2/
15-8
12LS
15
12
15
20
16 LS
12
12
12LS
3MP
15
12
15
15
16
12
12
12
15
16
10
8LS
3MP
15
10
4MP
16LS
7
6
12
16LS
9
5MP
4MP
8LS
3MP
15
15
(1)
36. Floor and wall
tile s, sanitary
goods and
fittings
37. Arms including
rifles, revol
vers, etc.
38. Fireworks
39. Cigarette cases
and lighters
(7)
3
E
4MP
5MP
8LS
3MP
4MP
4MP
5MP
4MP
8LS
3MP
5MP
4MP
12LS
3MP
5MP
12LS
10
10
10
15
16LS
3MP
46
Glass bangles
(1)
52. Air circulators,
exhaust fans and
electric heaters
of all varieties
x ii.
1 : Mica
2. Maganese
3. Hides and skins
(2)
(3)
(4)
(5)
(6)
(7)
10-12
10
10
16
5MP
3LP
8LP
4MP
12LS
3MP
3LP
3 L P ^ 4LS
8LP
4MP
12LS
3MP
2LP
4LP
2LP
4. Coal including
coke in all its
forms (as defined
under section 14
of CST)
4FP
4LP
2LP
3.5LS
<
4MP
8LS
4LP
8MP
10
10
8LS
1 0LP
7. Cotton y a m
a) as defined
under section
14 of CST
b) Cotton y a m
waste
8. Iron and steel
a) Iron and steel
(as defined
under Section
14 of CST)
9. Copper wire
10. Sugarcane
Rs 16 / per tonne
5LP
(LP)
Contd
(1)
(3)
12FP
(4)
(5)
(6)
(7)
10LP
5LP
R s .5 .9
5MP
4MP
tyi
b) wh.sn sold
otherwise
(2)
3MP
4LP
4MP
12T.S
3MP
5MP
5MP
4MP
121S
8LS
3MP
5MP
4MP
4MP
8LS
3MP
3LP
4I
3LP
4LP
4LP
3MP
5MP
10
4MP
8IS
3MP
g l/
8LS
4MP
8LS
3MP
errous metal
sheets, rods, baxs,
blocks, ingots,
circle scrap, etc.
1 6 . Cotton
17. Se wing thread and
thread balls
r t /
CO
iJ
5MP
11
4MP
3 .5
3.8P
3 .5
24. Bamboo
IO'
4
4MP
10
3MP
25. -imber
4MP
8IS
3MP
26. Bet
leaves
5MPS/ 4MP
; 2I'j
3MP
(1 )
U)
(3)
(4)
(5)
(6)
(7)
10
15
20
13
11
10
15
20
13
3. High-speed diesel
oil
11
10
15
20
7
8
12
12.5
13
16
11
11
15
10
X I I I . Fuel Items
1 . Motor spirits
5. Crude oil
6. Petrol
4
12.5
CM
4. Aviation spirits
82/
12LS
2. Lubricants
12
8LS
3MP
4MP
12LS
3MP
5. Other chemicals
4MP
8LS
3MP
5MP
4MP
5MP
4MP
8LS
3MP
10
DR
12
3MP
5MP
8-6
8LS
3MP
5MP
4MP
8LS
3MP
10^/
10
8LS
3MP
Polythene and
alkalene
5MP
4MP
4MP
121/S
6. Starches
XV. Machinery of all Kinds
XVI.
Packing Materials
1. Empty tins and
empty barrels
2.
3.
4.
(2)
(3)
(4)
(5)
(6)
(7)
5. Bituminus pack
ing materials
5MP
4MP
8LS
3MP
6. Cartons
5MP
8LS
3MP
8LS
3MP
1. Surcharge
5J/
10 ^ /
2. Additional tax
Refer Annexure I V .1
(1)
7 . Cane goods
5M P^
Notations;
PP
First Purchase
LS
Last Sale
10^
10^/
Exempted
LP
Lapt Purchase
MP
Multi-point
DR
Different Rates
Not Available
E .P .N .S , goods =
a/
b/
c/
d/
e/
f/
js/
I f registered under
h/
I f registered under
per cent.
i/
Electric heaters 12
j/
Sanitary fittings 8
k/
1/
m/
n/
o/
jo/
Corks at 5 MP.
cj/
r/
s/
from tax.
10
Of the tax
Coconut at 5 per cent
Cooked food served in hotel is exempted.
Patented with brand name.
Sold at Rs 50/- and above.
Turbine fuel at 78 per cent.
Grams are first-point taxable goods.
Pulses one per cent.
For domestic use exempted from tax.
Handmade 43 per cent.
Less than Rs 30 - cost - tax free.
Stones precious 12 per cent first-sale.
Not of leather 5 MP.
Tyres and tubes 10 per cent.
Sanitary fittings 10 per- cent.
Canegoods as furniture 10 per cent first-sale.
- 0 .4 per
cent
5 lakh to 7 lakh
- 0.5 per
cent
7 lakh to 10 lakh
- 0.6 per
cent
above 10 lakh
- 0.7 per
cent
Kerala
Additional sales tax is leviable on the transactions
effected by dealers whose T .T .O . exceed Rs 1 lakh as
shown below:
1 lakh to 10 lakh - 5 per cent
10 lakh
Andhra Pradesh
I f total turnover of the dealers in an year is Rs 3 lakh
or more, the additional sales tax is 0 .5 per cent of the
turnover.
Orissa
Additional sales tax is 0.5 per cent.
Karnataka
Additional sales tax is 0 .5 per cent.
in and signed
(i)
Scheme Under Tamil Nadu General Sales Tax Act for the
Purpose of Concessional Levy of Tax on Raw Materials*
In exercise of the powers conferred by sub
section (4) of section 3 of the Tamil Nadu General Sales
Tax Act, 1959 (Tamil Nadu Act 1 of 1959), the Governor of
Tamil Nadu hereby publishes the following schemes
(1) This
the
goods or class of
the
2.
is charged
or not.
3.
4.
5.
6.
7.
8.
9.
10.
11
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
22.
23.
24.
25.
26.
27.
28.
29.
30.
31 *
32.
33.
34.
35.
36.
37.
38.
39*
40.
41
42,
43,
44,
45,
46,
47.
43.
49.
an employee or by
51.
52.
Sales of goods to
53.
Sales of garments
55.
56.
Sales of goods by
Rehabilitation Industries.
57.
58.
59.
Trust.
60.
61.
62.
63 .
64 .
65.
66.
67.
68.
69 .
70.
lJl'c*,<
jion of India for making
72.
73.
74.
75.
76.
77.
78.
79.
61.
82.
83.
84.
85.
86.
87.
88.
89.
90.
91.
92.
93#
94.
95.
96.
97.
98 .
99.
1CO*.
101.
102.
Sales by the
Concerns, Koaaikanai
103.
104.
105.
106.
107.
Sales by the
Sales by
^ales.by the
111.
112.
Sales by the
113.
114.
115.
Bombay.
117.
118.
119.
120.
agents.
121.
122.
123.
124.
125.
126.
127.
128.
129.
130.
131.
132.
133.
134.
135.
of
13c.
139.
140
141.
142.
143.
144.
Toddy.
145.
146.
147.
140.
Poultry.
149.
150.
151.
ro
136.
152.
153.
134.
5.
Introduction
The sales tax system in Tamil Nadu, as in any other
State, has to be viewed in a specific setting because the
tax system of a State (of
In
(i i )
(iii)
Administrative expediency:
It should be so
administered as to cause the least harass
ment to the taxpayers and to result in low
compliance costs; and
(iv)
Co-ordination;
It should be in consonance
with the national objectives of overall tax
policy and with the structures prevailing
in the neighbouring States.
Finally, according
'EE'fe production
The Mysore
is tax on tax at
In
lower taxable base than the last-point tax (or a valueadded tax) and hence it has to be levied at a higher rate
for deriving the same amount o f .revenue.
Correspondingly,
One
successfully.
The
The tax
Substantial modifications
For
However, the
f on \
V cc )
The reason
By contrast, it
tax has the advantage that the greater part of the tax due
will be collected from
For the
The commodi
Our
We have indicated
( si
v, _i_ux
Stainless steel;
Brass and copper wares and vessels;
Iron and steel;
Aluminium;
Wooden and bamboo products including
furnitures;
Vegetable oil and products;
Polythene granules and products;
Rubber products;
Electronic products, and
Household electrical appliances.
Multiplicity of Rates
As in most other States, in Tamil Nadu too, there
are very fine gradations of sales tax rates for different
commodities.
These
Treatment of Input s
We pointed out in chapter 4, that under the existing
provisions the concessional treatment of inputs was quite
restricted.
To
Raw materials
In
State.-'
exemption
However, the
4/
single-point taxation.
The examination of the provisions in respect of the
taxation of inputs in the different States shows that,
generally speaking, either producers are allowed to buy
the raw materials at a concessional rate varying from 1 to
4 per cent, or there is a conditional or an unconditional
exemption for such purchases.
the
Presently, there is
the
In
It is , therefore,
output-^
After
5/
The
raw
that (a) all the raw materials and other inputs be taxed
only at the rate of 4 per cent when thiose are bought by
manufacturers, and (b) the tax paid on inputs and raw
materials be allowed to set-off against the tax to be
paid on final goods.
Actual
rate
Proposed Proposed
rate
yield
(Rs lakh)
(2)
(3)
(4)
(5)
101
Typewriters, tabulating
machines, etc.
15.00
15.00
65.22
102
15.00
15.00
59.41
103
104
105*
106.
7.00
12.00
15.00
12.00
1943.73
80.96
Spark plugs
7.00
15.00
15.00
15.00
107.
15.00
15.00
92.82
108,
15.00
15.00
227.81
109.
110.
15.00
15.00
15.00
15.00
15.00
10.00
13.00
15.00
15.00
15.00
15.00
15.00
69.73
etc.
15.00
15.00
0.59
13.00
15.00
102.92
(1)
111.
112.
Dry cells
66.24
1.21
179.07
0.18
6.96
6.96
0.52
(2)
(1)
117.
Mechanical -lighters
1-1.8.
(3)
(4)
(5)
15.00
15.00
0.39
2.00
2.00
14.07
119.
Cotton waste
4.00
4.00
120.
10.00
4*00
26.93
19.01
121 .
4.00
4.00
355.26
122.
Jari
4.00
8 .0 0
55.37
123
3 .0 0
4.00
657.83
124.
4.00
4.00
90.96
125.
Precious stones
9.00
10.00
13.44
126.
Chicory
6 .0 0
8.0 0
4.82
127
4.00
8 .0 0
234.51
128.
Cement
10.00
4.00
217.40
129.
Kerosene
8 .0 0
8 .0 0
697.14
130.
6.00
8 .0 0
371.62
131
6.00
8 .0 0
341.96
132
Bicycles
3 .0 0
4.00
135.22
133
9.00
12.00
24.55
134
3 .00
12.00
628.76
135
9 .0 0
1:2.00
421.83
136
12.00
12.00
63.17
137
138
12.00
15.00
43.00
8 .0 0
8 .0 0
8.10
139
8 .0 0
8 .0 0
80.01
140
8 ,00
4 .0 0
747.68
1 41
6.00
4.00
253.29
142
Mercury
8 .0 0
4.00
0.83
(1 A
(2 )
Seents and perfumes
144
(4)
(5)
8.00
55.70
8.00
8.00
21 .15
145
Tractors, bull-dozers
9.00
8.00
128.30
146
3.00
15.00
14.92
147
8 .0 0
8 .0 0
12.52
148
2.00
2.00
21 .39
149
150
2.00
4.00
Sugarcane
12.00
3.91
770.35
151
6.00
4.00
57.25
152
Caustic soda
6.00
4.00
43.48
153
3.00
4.00
72.35
154
Fuel gas
10.00
8 .00
59.54
156
25.00
25.00
46.65
157
25.00
25.00
a>
o
12.00
CM
143
(3)
159
Asphalt (bitumen)
8.00
8.00
2.99
170.86
160
Sulphurf
8.00
8.0 0
48.81
161
9.00
4.00
3.12
162
Wheat products
2.00
2.00
93.82
163
Cardamom
3.00
4.00
17.06
164
Oil cakes
3.00
4.00
58.37
165
4.00
4.00
463.29
166
Machine-made matches
4.00
2.00
0.03
167
4.00
4.00
128.54
168
4.00
4.00
136.46
169
All machineries
6.00
4 .00
340.73
170
5.00
4.00
7.15
171
Laural oil
5.00
4.00
0.05
(2)
0)
(3)
(4)
172
5.00
4.00
173
Lemongrass oil
5.00
4 .00
174
5.00
4 .00
175
Ready-to-wear apparels
5.00
8 .0 0
176
5.00
4.00
177
5.00
8 .0 0
178
5.00
15.00
179
180
5.00
8 .0 0
Ice
5.00
4.00
181
X-ray apparatus
5.00
4.00
182
French coffee
6.00
8 .0 0
183
8 .0 0
8 .0 0
184
8 .0 0
8 .0 0
185
Welding electrodes
8 .0 0
8 .0 0
186
Roller bearings
8.00
8 .0 0
187
8.00
8 .0 0
188
Arecanut, betelnuts
5.00
4.00
189
Scented nut
8 .0 0
8 .0 0
190
8 .0 0
8 .0 0
191
192
10.00
10.00
8 .0 0
8 .0 0
193
Water meters
8 .0 0
8 .0 0
194
Brako fluid
8 .0 0
8 .0 0
195
196
10.00
8 .0 0
10.00
8 .0 0
197
Nitric acid
8 .00
4.00
198
10.00
10.00
ill
(2)
(3)
( 4 ) _____
.(5)...
199
4.00
4.00
264.41
200
3.00
4.00
102.87
201
Spectacles,sunglasses
'8.00
8 .0 0
5.83
203
Plywood, blackboard
3.00
10.00
49.78
204
8.00
4.00
27.48
205
206
8.00
8 .00
24.38
8.00
8.00
385.84
207
8.00
8.00
8.19
208
8.00
8 .00
95.35
209
8.00
8 .00
18.14
2-10
8.00
10.00
22.36
211
8.00
8 .00
1 .67
21 2
8.00
8 .0 0
13.60
213
Playing cards
9.00
8.00
5.40
214
Synthetic rubber
9.00
10.00
0.75
21.5
216
Rubber products
9.00
10.00
55.78
5.00
0.00
0.00
1 0.00
1 5.00
104.59
218
Linoleum
15.00
1 5.00
0.83
219
15.00
1 5.00
13.29
220
Pile carpets
1 5.00
15.00
0.67
221
15.00
1 5.00
8.05
223
Molasses
25.00
25.00
224
30.00
30.00
26.93
4.86
225
226
P .V .C . conduit pipes
9.00
10.00
5.00
4.00
217
27.04
0.56
Annexure V.1
(2)
00
22u
Toothpaete, po./der
229
(3)
trush etc.
(4)
(Contd)
(5)
. 00
8.00
62.13
Shaving sets
8.00
8.00
25.39
230
8.00
4.00
250.65
2:i
8 .00
8,00
11 .90
232
Rough synthetic
15.00
1 5.00
233
3.00
4.00
13.29
9.56
234
Handmade matches
2.00
2.00
21 .65
401
3.00
4.00
12.43
402
3.00
4.00
311.28
403
3.00
4.00
1105.38
404
4.00
4.00
885.38
405
Jute
4.00
4.00
406
3.00
4.00
0.79
233.88
407
Groundnut
3.00
4.00
265.93
408
3.00
4.00
161 .55
409
410
2.00
2.00
82.34
3.00
4.00
2.95
411
Cereals
4.00
0.00
0.00
412
Crude oil
4.00
0 .00
0.03
413
601
Pulses
4.00
4,00
Abrasives
4.00
8.0 0
274.77
1 .46
602
4.00
8.00
0.61
603
Acids*
Aerated \'/ater*
5.00
8 .00
4.91
604
Aromatic chemicals
4.00
8 .00
0.95
605
606
4.00
8 .0 0
13.96
4.00
8.00
5.56
607
608
Asafoetida
Baking products*
4.00
8.00
4.00
8.00
4.64
1 5.81
(1)
(2)
(3)
(4)
(5)
4.00
8.00
1 .85
Beedi leaves
4.00
B.oo
12.65
Building materials
4.00
8.00
38.46
cl 2
Milk products*
4.00
8.00
18.77
613
4.00
8.00
5.23
614
Camphor
4.00
8.00
11 .97
615
316
4.00
8.00
1 .76
Coconut products
4.00
8.00
0.17
617
Chillies
4.00
8.00
94.98
618
Cinder
4.00
8.00
1 .05
619
620
4.00
8.00
1 .45
Packing materials
4.00
8.00
106.28
621
Domestic utensils
4.00
8.00
CO.70
622
4.00
8.00
10.86
624
Engineering goods
4.00
8.00
84.97
625
Footwear
4.00
8.00
67.76
626
Forest produce
4.00
8.00
1 .75
627
628.
4.00
8.00
7.06
General goods
4.00
8.00
382.23
629
4.00
8.00
80.11
30
Hardware
4.00
8.00
175.69
3-1
632
Handmade soaps
2 .00
8.00
75.36
Homeopathic medicines
4.00
8.00
0.02
623
Ice-creams
4.00
8.00
2.51
34
J ewellery
4.00
8.00
197.75
:.5
Light lanterns
4.00
8 .0 0
3.24
J'J
Lime shell
4.00
8.00
11.14
509
61 0
:i
Annexure V J _ ( C ontd)
o7 ~
(2)
(3)
(4)
(5)
C37
Livestock
400
. 00
0.34
638
Manures*
4.00
8.00
639
4.00
8.00
6.09
120.08
640
Music instruments
4.00
8.00
0.82
641
Optical goods
4.00
8 .0 0
5.55
642
4.00
8 .0 0
96.94
643
Poultry feed
4.00
8 .00
28.12
644
4.00
8.00
645
Printed matter
4.00
8.00
32.99
166.02
646
P .V .C . cloth, Rexine
4.00
8.00
647
Readymade garments*
4.00
8.00
8.94
58.86
648
Rubber goods*
4.00
8.00
9.49
649
Raw silk
4.00
8.00
0.23
650
4.00
8.00
16 .2 1
651
Scented sticks
4.00
8.00
6.79
652
Scientific equipments*
4.00
8.00
4.20
653
Sports goods
4.00
8.00
8.87
654
4.00
8.00
55.44
655
Stores*
4.00
8.00
1 .28
656
Tamarind
4.00
8.00
47.39
657
Tapioca products
4.00
8.00
65.45
658
Transport vehicles*
4.00
8.00
659
660
Turmeric
4.00
8.00
1 .79
45.46
4.00
8 .0 0
0.02
661
Waste paper
4.00
8.00
18.88
662
Menthi
4.00
8 .0 0
2.57
665
Vermicelli
4.00
8.00
2.57
i u ____
(2 )
___________________ -
- ill
(4)
.- i l l .
666
Pepper
4.00
8.00
3.60
667
3.00
8.00
173.74
699
Others
4.00
8.00
265.50
TOTAL
0 .00
0.00
14070.73
However,
where?
'
X.
J
product.
This
cent, we assumed that the same was met from imports and
the I I D was adjusted accordingly.
assumed that at least 50 per cent was met from the imports
i f the tax rate was 5 per cent or more.
This proportion
Estimated revenue
with the normal rate
Excess of estimated
yield over actual
yield (EEA)
or, EER
where, b1
b^ r^ + b2r2
r2 ^ 1
+ ^2^
^ (^
+ b2 ) - ( r ^
(r2 - r^)b1
+ r2b2 )
r^
b1
r2
This would,
5*ctor
Sts\,utory
tax rate
(per
o*nt}
Eetiwated
invarindustry
dl9M'ld
(Re *000}
U)
Confaotlonary
Mlacallanaoua food product*
Aleehol
Br*w*rl*
fumltur* nd flxtur*
Paper and pag>*r products
Balo ohaaicala
Valuta and varniahaa
Slcoallanaoua eh*alcal product*
Patrolaua r*fln*riea
Patrolaua product*
Hoskiai
S*ttaat*d
tax
tax reve
rtvnu
nue at 4
(R* *000) t tfcp*r oant
tutory
tax rat*
tax rataa
(R* *000)
In tarlnuatry
demand
(2)
(3)
(4)
(5)
7.62
52
1811189
4
72448
147
247
9
33079
36792
4208
1628
58
905595
814
25.00
1975
988
9.56
191
662952
937376
86854
392850
9)3497
161076
26640
96
510473
468688
6.00
18.02
6.48
7.65
9.69
6,1?
>>.14
5.11
5.00
4.63
10.00
7.79
10.45
14.32
8.53
6.00
s .97
15.00
4.65
7.16
7.16
15.00
6.00
6.70
86)4
43082
377059
213760
216749
1288
93622
21322
734832
760827
8293
424906
30312
161917
43427
179397
466749
90538
26640
8634
21541
188530
106880
1103
202261
*288
46B11
10661
651324
380414
4147
212453
11069
37993
4626
1332
400
2154
14686
11169
316
17253
*03
4199
1599
3028?
27238
297
(6)
2
36224
33
40
4
20419
10746
1737
7176
18670
3688
1066
345
ati*at*4
ifcoaa
4jff*raoo*
ifea^OOO)
(7)
8
362*4
114
807
5
18660
18044
2471
3893
15383
1004
866
55
868
1298
7541
4275
7145
6894
88
288
8090
9163
52
187*
51
2327
426
1173
26053
15217
12001
4834
165
132
8498
23370
303
15156
31868
909
80959
5424
606
3238
349856
185069
2186
164787
TABLE
A . 5.2
S I.
Ho<
.
Commodity group
Estimated
losg
(Rs lakh)
(2)
(1)
(3)
1.
1.00
2.
0.44
3.
791.74
4.
Dry cells
5.
6.
24.98
0.36
14.63
16.93
7.
8.
0.17
9.
0,04
10.
0,17
11.
0.04
12.
0.39
13.
0 .18
14.
0.40
15.
16.
Chemical fertilisers
Milk foods
48 ,60
0.01
17.
18 .
Cement
8 3.05
Kerosene
102.74
19.
0.09
(2)
(1)
20.
(3)
0.31
7.53
1 .77
23.
0.03
24.
Lubricating oils
25.
18.42
26.
15.09
21 .
22.
105.25
28.
29.
30.
0.57
0.58
Caustic soda
0.19
31 .
1 .53
<M
no
Asphalt (Bitumen)
2.89
33.
Sulphur
0.03
34.
Wheat products
0.01
35.
0.90
36.
0.08
37.
6.46
38.
0.22
39.
40.
0.03
41.
0.01
42,
Ice
0.05
27.
2.52
8 0.02
Contd.. . . . ,
(2)
43.
French coffee
0.06
44.
0.04
45.
0.07
46.
Roller bearing
3.96
47.
Chinaware
0.01
0.08
0.39
50.
0.05
51 .
Brake fluid
0.02
52.
Gases
53.
0.31
3.02
54.
4.63
55.
Spectacles,sunglasses, goggles
0.21
56.
5.39
57.
2.30
58.
0.21
59.
0.53
60.
0.60
61 .
Rubber products
3.62
62.
2.87
63.
Linoleum
0.03
64.
0.19
65.
66.
0,67
1 .57
67.
0.52
CO
(1)
49.
(3)
(all kinds
6.
growth rate of 2.8 per cent per annum over the period of
sixteen years.
This happened
TABLE
6.1
Trends,j m J S ^ e s J C s a r a t i o n jy ^.am ^N ad u .
___
Afs essees
--* r*
1 ."59-60
591 47
(51.41)
-o-,3-64
Total
115057
( 10 0 . 00 )
NA
NA
26885
NA
55910
(48.59)
NA
135013
NA
NA
40233
' - -65
NA
NA
146944
NA
1965-66
NA
NA
156671
NA
NA
50090
;?::-67
NA
NA
162354
NA
NA
: ;7-68
51618
NA
NA
167478
NA
,3-69
NA
NA
NA
56097
169148
NA
NA
60481
1969-70
105645
( 6 1 . 68 )
65656
(38.32)
171301
(100.00)
iC 70-71
105773
67210
172963
(61 .15)
(38.85
(100.00)
1971-72
102676
(56.26)
79824
(43.74)
1972-73
90703
(48.00)
1573-74
1974-75
1575-76
, 60410
(100.00)
NA
64605
182500
( 100.. 00 )
NA
NA
67351
98254
(52.00)
188957
(100.00)
NA
NA
72703
97211
(50.70)
94^04
(45'.30)
NA
NA
79904
87057
(43.30)
113985
(56.70)
19'735
(100.00)
20". 042
( 100 . 00 )
94201
(45.55)
106146
(51,25)
r7-78
45035
(74.55)
44582
NA
19436
(21.71)
25704
(26.85)
70019
(73.15)
102880
(48.75)
212277
( 100 . 00 )
206819
( 10 c. 00 )
211Q26
( 100 . 00)
62718
(75.29)
70076
(78.29)
24991
(25.24)
73997
(74.76)
, 95723
(100.00)/
, 98988
(100.00)
94353
118924
(4 4 .2 4 H 5 5 .7 6 )
1976-77
15375
(25.45)
NA
112618
(54.45)
20589
(24.71)
. 83307
(100.00)
, 89512
(100.00)
1 970-79
102795
(50.15)
102118
(49.85)
2049~6
( 10 0 . 00)
21874
(20.88)
82898
(79.12)
'9-60
104398
(45,26)
126270
(54.74)
230668
(100.00)
104772
(100.00)/
19717
(18.18)
88712
(81.82)
108429
(100.00)
~:
;uni
growGh rate
(1969-70 to
ig^-eo)
'oies
1.
2.
0.03
5.81
2.6o
6.19
In the
Because of
TABLE
6.2
Turnover group
(Rs *000)
Below
50
50 - 75
75 - 1 00
100 - 150
150 - 200
200 - 300
300 - 500
500 - 1000
1000 - 5000
5000 - 10000
10000 - 50000
Above 50000
TOTAL
Note:
Assessees
(number)
"15
Taxable
turnover
(Rs lakh)
Gross
turnover
(Rs lakh)
Revenue
collectec
(Rs lakh
111 .62
(0.94)
154.31
(1 .30)
128.69
(1.09)
26509
(30.09)
14084
(15.99)
6451
(7 .3 2 )
6245'
(7.09 )
6244
(7 .0 9 )
6539
(7.42 )
6906
(7.84 )
7182
(8.15 )
6710
(7 .6 2 )
683
(0.78 )
473
(0 .5 4 )
78
(0.09)
5315.87
(0.95)
8260.29
(1.47)
5581.78
(1 .0 0 )
8909.68
(1.59)
8909.68
(1.59)
16043.35
(2 .8 6 )
26749.50
(4.77)
51099.35
(9.12)
136382.. 15
(24.33)
46862.30
(8.36)
92742.63
(16.55)
153639.43
(27.41)
2065.42
(8.85)
4755.81
(1 .9 7 )
3115.47
(1 .2 9 )
4176.84
(1.73)
4176.83
(1.73)
7407.35
(3 .0 6 )
11699.67
(4.84)
22488.18
(9 .3 0 )
47956.25
(19.83)
18294.15
(7 .5 6 )
47990.01
(19.84)
67741.45
(28.01)
(1 .60)
189.83.
(1.60)
339.72
(2.87)
539.90
(4.56)
1042.31
(8.79)
2148.99
(18.13)
809.77
( 6 . 83 )
2255.64
(19.03)
3941 .75
(33.26)
GC104
(100.00)
560495.9C
(100.00)
241867.43
(100.00)
11852.37
(100.00)
Source:
189.84
Department of
Commercial Taxes,
Tamil Nadu. Madras,
TABLE
6.3
Turnover group
(Rs *000)
Below
50
50 - 75
75-100
100 - 150
150 - 200
200 - 300
300 - 500
500 - 1000
1000 - 5000
5000 - 10000
10000 - 50000
Above 50000
TOTAL
Assessees
(number)
Gross
turnover
(Rs lakh)
Taxable
turnover
(Rs lakh)
Revenue
collected
(Rs lakh)
1801
(4.98 )
366^
(10.13)
3147
(8.70 )
3937
(10.97)
3937
(10.88)
4420
(12.21
4722
(13.05)
4761
(13.16)
4726
(13.06)
576
(1 .59 )
411
(1.14 )
85
(0 .23 )
547.93
(0.13)
2256.15
(0 .5 4 )
2722.49
(0.65)
5651 .39
(1.36)
5651 .39
(1 .36)
10650.34
(2 .6 0 )
18231.69
(4 .3 7 )
33532.33
(8.04)
95904.62
(23.00)
39691.60
(9.52)
83457.71
(20.01)
118516.71
(28.42)
362.38
(0 . 1 8 )
1240.18
( 0.61 )
1449.25
(0.72)
2979.51
(1 .4 7 )
2979.51
(1 .4 8 )
5532.09
(2.74)
8579.23
(4.25)
13988.87
(6 .9 3 )
35869.39,
(17.77)
17784.43
(8 . 8 1 )
44175.27
(.21 .88)
66949.67
(33.16)
17.70
(0 . 16)
59.45
(0.53)
70.01
(0.63)
145.22
(1 .3 0 )
145.22
(1.30)
270.24
(2 .4 2 )
425.00
(3 .8 1 )
698.03
(6 .2 5 )
1791 .35
(16.05)
960.29
(8.60)
2610.75
(23.46)
3961.25
(35.49)
36190
(100.00)
417014.34
(100.00)
201909.77
(100.00)
11162.50
(100.00)
Only a small
Thus, the
We find
the Department.
Gujarat
It is to be noted that
these exemption limits apply to resellers who deal in firstpoint goods as well as to those who deal in multi-point
goods, where applicable.
In Tamil Nadu, as a first step, it may be desirable,
to raise the exemption limit to Rs 75,000 for all re
sellers.
TABLE
6 .4
Specific*
1. Andhra Pradesh
25,000
2. Assam
20,000
N il (I&M)
3. Bihar
4. Gujarat
50,000
N il (I&M)
1 ,0 0 ,0 0 0
30,000 (I&M)
5. Haryana
1 ,0 0 ,0 0 0
25,000 ( M )
N il ( I )
50,000
N il ( I )
7 . Karnataka
25,000
N il ( I )
8. Kerala
50,000**
N il ( M )
9. Madhya Pradesh
50,000
10. Maharashtra
10.000 ( I )
20.000 ( M )
20,000 (SG)
40,000 (Eating
establishment)
N il (Dealing in
IMPS)
1 ,0 0 ,0 0 0 (RH)
50,000 (Co-op)
7 5 ,000
30,000 (I&M)
11. Punjab
1 ,0 0 ,0 0 0
40,000 ( M )
Nil ( I )
40,000 (RH)
12. Orissa
50,000
Nil ( M )
Co-op. Ltd.
Company
13. Rajasthan
50,000
10,000 (I&M)
50,000@
1 ,0 0 ,0 0 0
Nil ( I )
50,000 ( M )
1 ,00 ,00 0@
50.000 ( M )
20.000 ( I )
N il (I&M)
25.000 (Co-op)
50.000 (Sweets)
Notes
*'
**
@@
As already pointed
It must also be
Self-Assessment
As most of the tax revenue is collected from a
very small fraction of the total assessees who fall in
the highest turnover group, it is in the interests of the
Department to concentrate on the assessment of these
dealers.
checked thoroughly.
As brought out
With
This would
activities such as
Under
They
With a
2/
For this, it is
In case any
Such an
in
even
may be.
no response to such
7.
Introduction
Enforcement of the sales tax, like that of any
other tax, basically connotes securing obedience to the
law in force.
hammering by
imply
In
the methods
to
of
State.
We examine
This is followed
Finally, we
On the other
Normally, the
First, sales are effected without bills and are not accounted
for.
Thirdly ,
That
When
As a general
Though
Thus,
When
A dealer
Often,
A variety of ways
I f the
To avoid
Yet another
Subsequent sales
I f the sales at
This
persons or
He
The Study
fABLE
nf g,t
7.1
C aw diti
Quantit)
Unit
vua*
(B* *000)
Sffigg. ft#.
vnw r
Chillie*
Jocomrt*
Jat*
?u***ric
Cotton
JH fB T
1b *trlc tons
m
m
m m
ft
Horn.
m
.
(tft B t l n of
400 lb*.)
In **tric tons
BmX of 392 lb*.
In M trlc tan*
<2)
(1)
Hies
Pula*
Killsts
^TOundnut*
IU U I
(a* *ooo)
Value
( H a '000)
2,26,07,56
4,71,87c
28,87,88
33,03,134
197,19,69
11,97,79
32,13,38
41,34,75
7,38,80
3,61,3*
4,07,71
3,27,50
1,00,000
34,2=0
10,000
J ,82,46,738
1,49,72
4,01,67
5,16,34
2,23,60
,07,67
2,29,250
7,00,000
6,59,750
70,000
26,77,41,162
10,48,07
2 8 ,I f ,72
36,17,91
15,65,20
35,390
50,96
a ,31,230
3,56,75
25,486
35,780
6,82,930
2,06,73
3,46,72
39,95,14
3,186
-
26,09
22,300
-
1,32,64
Quantity
7,53,63
valu*
(B* *000)
-SSEBi2i
Quanti^
10,57,002
73,360
4,90,000
64,6 c , s S
3,35,3k
19,67,65
-
2,246
1,55,893
210
6,50,750
70,000
6,77,41,16?
2,31,230
' 'TOgJ!"'
(h* *<Kfc)
(5)
{(4)
(3)
37,75,010
2,62,000
3,00,000
7,54,000
80,000
30,59,89,900
2,87,120
Domestic aarketabl*
Son-anoti2ed
22,300
95,180
6,82,930
1,33,50,67,12 ,fc;
8,44,0'
36,17,515,65,20
- 7,53.6^
3,56,7?
1,82,6*
3,46,72
39,95,14
2,57,25,65
n u ii
t c im
387,61,96
43,64,43
300,55,67
67,71,88
Inventories snd
hoarding 20 per cent
of domestic aarfcetabl> surplus
Quantl'iy
1 vj.ue
'
Turnover assessed
to tax
(Be 000)
(Re *00C)
Turnover assessed
as a per cent of
domestic marketable
surplus
( per cent )
Sales tax
realized
(Be *C0C)
Ideal yield
(B *000)
(7)
(6)
?,226
..1,1 ?
5,200
-
26,70,1
,
1 , 42,55
3,62,39
-
31,95,1V,
17,96,906
2,24,712
1,14,800
6,59,750
70,000
26,77,41,162
1,06,80,67
5,70,15
4,61,68
36,17,91
15,65,20
(8)
58,41,103
4,32,32
72,89
7,28,79
56,73
90,54
2,31,230
7,53,69
3,56,75
22.30C
95>78o
6,82,930
1,82,64
3.46,72
39,95,14
1,67,91
2,15,73
6,74,55
2,25,30,54
34,72,51
1,91,72
(10)
(9)
54,66
75,60
15,78
20,7
3,62
12,01
53,74
1,72,68
9,0C
1,47
14,01
*,02
2,64
56
4,27,23
11,4C
9,23
72,3*
31,30
15,07
7,13
10,96
7,59
3,11
1 7 ,*
6,93
1,19,85
2,30,05
7,11,46
91,93
62,21
16,89
Source :
(11)
4"
fn rltlh
BCABB, lew ie L d .
TABLE
7 .2
Method of evasion/
avoidance
Loss of revenue
Percentage loss
(Rs lakh)average
(loss of revenue
for five years
as per cent of
1971-72 to 1975-76 potential tax
revenue
66.35
50.9
Suppression of transactions
by cold storage owners
32.60
25.0
Other methods
14.29
11.0
17.14
13.1
130.38
100.0
( 140 )
TABLE
7.2
Method of evasion/
avoidance
Loss of revenue
Percentage loss
(Rs lakh)average
(loss of revenue
for five years
as per cent of
1971-72 to 1975-76 potential tax
revenue
66.35
50.9
32.60
25.0
Other methods
14.29
11 .0
17.14
130.38
13.1
100.0
( 141 )
TABLE
Sales TaxPotential_of
7.3
Motor Parts in Bihar
(1972-73 to 1977-78)
Estimated
tax base
(1)
(2)
1972-73
1973-74
1974-75
1975-76
647.63
947,71
873.11
1021 .95
1976-77
1977-78
1316.17
2102.74
Estimated
tax
potential
(3)
Actual
taxable
turnover
(4)
Tax
Tax revenue
revenue as a proporcollected tion
of tax
potential
Cols. 4 f 2
(per cent)
(5)
98.83
145.25
572.16
550.18
50.57
50.52
135.64
665.45
821.17
1170.57
1411 .93
60.99
88.75
107.05
129.12
187.31
225.72
362.2c
Sources
(6)
51.17
34.78
44.96
47.38
47.43
35.64
As in Table 7.2
( 142 )
( 143 )
TABLE
7.4
Results based on
Average
Minimum
price
price
Particular
(D
1 . Total production
2. Deductions
2.1 Seeds used in sowing
2.2 Consignment sales (average value)
2.3 Export (average value)
Total deductions
3.
4.
5.
(2)
(3)
303.68
332.1 5
64.64
70.70
7.55
14.17
7.55
14.17
86.36
92.42
217.32
239.73
214.86
2.46
237.27
2.46
9.21
10.17
( 144 )
TABLE
7.5
Frice
Sales tax
potential
(1)
(2)
Minimum
price
9.21
Sales tax
receipts
based on
sales tax
record
(3)
Difference
(4)
Column (-4) as
per cent of
column (2)
(5)'
1 .64
17.81
2.60
25.56
7.57
Average
price
10.17
Source:
As in Table 7.4.
( 145 )
TABLE
7.6
Year
1966-69
1969-70
1970-71
1971-72
1972-73
0.61
2.12
16.06
0.86
0.96
2.53
3.56
22.32
61 .38
1 .57
1.86
2.94
3.10
91 .30
85.28
Source:
0.43
0.44
1.38
2.06
2.98
1.37
2.45
3.42
4.31
3.36
( 146 )
TABLE
7.7
Estimated
production
(tonnes)
196869
1969-70
1970-71
1971-72
1972073
1973-74
66,473
76,897
78,731
88.929
91,948
1',18,020
Average
price
(per
cent)
5,079
4,739
4,583
33.76
36.44
35.08
4,255
37.84
41...77
54.21
4,543
4,577
Source:
20.29
23.53
25.71
18.33
31-.51
31 .09
As in Table 7.6.
0.41
0.49
0.78
0.58
0.99
0.98
( 147 )
TABLE
7.8
Year
Estimated
marketable
surplus
(Rs crore)
(1)
1968-69
1969-70
32;01
Taxable
turnover
(Rs crore)
(2)
13.32
23.28
Column (3)
as per cent
of col, (2)
Tax levied
(Rs crore)
(3)
(4)
41 .6
0.77
1 .22
1970-71
1971-72
36.31
32.94
29.96
31.52
34.00
64.1
95.7
126.1
1972-73
1973-74
22.73
28.94
13.25
16*74
58.3
44.0
Source;
1 .65
1.77
0.70
0.88
As in Table 7.6,
OTAL
J .1 .)__ _________________
___ _
7.9
113761
148002
_____
88306
6560
6016
9920
13295
19314
NA
2996
579
235
41 .6
31 .0
85.4
NA
54.2
64.2
91 .&
38.8
10.4
18.3
59.7
NA
63.9
54.0
66.0
45.9
NA
74.8
27.7
72.8
83.2
71 .4
32.9
77.9
37.1
- -CX.)___
Actual tax
Receipts as percenta,
ojT potential tax bas
'19o >-&T
*196979
47375
NA
9412
182833
201 50
42071
NA
4006
2093
323
4292
2304
NA
6029
9849
4410
1547
307
108
13847
2697
NA
11115
15334
4805
3988
2944
589
1 6896
4921
3661
22084
4002
<1
(3y
2651
1810
6976
5025
2067
_____
____ 1969-70
Expected
Actual
revenue
receipts
under UP
sales tax
act
(2)
5232
4045
41 520
4787
2858
__ 196566
Expected
Actual
revenue
receipts
under UP
sales tax
act
Actux1 Sales Tax REceipts as Percentage of Potential Tax Base in Uttar Pradesh
for_the Years 1965-66 and 1969-70
TABLE
( 148 )
( 149 )
1969-70 to
1973-74
1974-75
1975-76
total for
years,
1973-74
1968-69
1969-70
197 0-71
1971-72
1972-73
Year
7 .1 0
119
130
143
31 .8
3 5 .9
3 7 .8
3 9 .2
4 5 .9
ShortS a les
f a ll
tax
(C o l.
poten
7 tia l
C
o l . 1)
in c lu
(R
s
.
ding
c
r
o
re)
a d d i
t io n a l
axation .
Rs -.QEQXftJ
36 .1
41 .7
4 6 .3
5 5 .8
7 7 .6
2 9 .0
3 5 .4
4 0 .7
41 .7
4 9 .0
7 0 .1
130
169
41 .5
Source s As in Table 7 . 6 .
3 6 .2
2 5 .2
112.2
122.2
1 0 4 .2
1 1 4 .2
4 5 .5
4 8 .4
68.0
7 6 .0
9 7 .6
236
4 5 .6
2 5 7 .5
31 .2
2 4 .2
236.2
9 .8
8 .4
1 7 .6
20.6
32.2
1 7 .7
10.0
3 .6
4.1
3 .9
9 .8
1 7 9 .5
229
121
117
P erc en
tage
shortr*
fall
Estim ated
sa les tax
p o t e n t ia l
at curr
ent p r ic e s
(C o l .4 X
C o l . 5 /1 0 0 )
(Rs crore)
100
112
Z j a l ...
P rice
index in
respect of
commodi
t i e s sub
jected to
sales
ta x atio n
2 9 .0
31 .6
3 4 .2
3 4 .5
3 7 .7
Estim a
ted
sales
tax at
1968-69
p r ic e s
(Rs
crore)
1 9 0 .6
157
167
118
109
1 00
2 9. 0
J A L
In d ex of
income
from
trade
sector at
constant
p ric e s
ZliT.Z
Sales
taxes at
1966-69
lev e ls of
taxation
excluding
a d d itio n a l
taxation
(Rs crore)
P o t e n t ia l
211 .9
5 3 .4
I 1- ill *
2:9.0
3 2 .5
' 3 7 .6
4 2 .4
4 6 .0
(*
^
crcre)
T o tal
revenue
from
sales
taj:_
TABLE
( 150 )
3.
4.
5.
6.
7.
1.
2.
;1 .
!0 .
zzzzr.
C h i l l ie s
Tcxnarincl
Gr^ns and pulses
Groundnut o il
Groundnut o i l cake
G in ^ a lly o il
G in ^ e lly o i l cake
Comnodity
7 .1 1
ZilZI
33 1 6 6 0
184094
230117
22663
28329
82000
110340
1000
1250
5000
750
5000
1 500
5200
1 9 5 .6 0
174.8 1
3 7 0 .4 1
... ......
OH
5 2 .81
81 . 2 8
21 . 1 1
2 4 .9 5
______
Percentage
of evasion
31 .9 2
4 0 .3 9
2 6 .2 5
(7 )
9 .3 0
9 8 .1 2
(6 )
Sh ort
f a l l of
revenue
C o l . ( 5)~
C o l. ( 6 )
96.00
Actual
revenue
co llec ted
from a l l
stages of
sale
1 2 7 .9 2
4 9 .6 9
1 2 4 .3 7
"(5)
S a le s tax
revenue
p o t e n t ia l
at one
stage
Sources
4 2 6 4 .0 0
1 6 5 6 .4 5
4 1 4 5 .7 5
9 2 0 4 .7 0 )
1 7 2 5 .8 8 )
1 1 3 3 .1 5 )
2 8 3 .2 9 )
Whole?Value
sale
p ric e
per to
nne (on
September
Q 6 Q . .... .
. 1'-2y.2.L
_ _(_2j ____ _ _ (.3 )_
Quantity
a v a ila b le
fo r sale
(tonnes)
(1969- 70)
TABLE
( 151 )
( 152 )
TABLE
7 .1 2
Year
P o ten tial
revenue from
. sales tax
Actual y ie l d
from sales
tax
Short
f a l l of
revenue
Percentage
of evasion
1970-71
3 6 .4 4
3 3 .0 7
3 .3 7
9 .3
1971-72
3 9 .9 9
3 5 .8 9
4 .1 0
1 0 .3
1972-73
4 4 .0 0
36.51
7 .4 9
1 7 .0
1973-74
6 7 .4 4
4 2 .2 3
25.21
2 6 .5
1974-75
61 .76
58. 26
3 .5 0
5 .7
1975-76
6 3 .4 6
5 7 .2 4
6.22
9 .8
Source :
275.69
4>6.7**
Actual revtmie
(Sa *000)
ax evasion
(sl 000)
Hot* I
5676.55
Bubber , /
(Latex)"
1976-77
G u
48.66
36054.00
J4t71.00
70225.00
1404500.00
774001.00
Wfc-f7
rl-ig authority
43-06
36142.00
27333.00
63475.00
1269500.OC
796925.00
thole State
7.13
773101.00
816232.00
Sourcs:
46.47
23414.00
20325.00
4373S.00
63.89
16956.00
30000.00
46956.00
66.69
19799.00
40000.00
59799.00
1993300.00*
642040.00
G o ftn v n t of t e l l M u i
Coaawrcial Tax** Department,
Madras.
68.06
9373.00
20000.00
29379.00
849382.00
T9T537r
l y > h n r l (District)
21.21
750.49
201.99
952.48
3 per e t rolti-point
*6.81
39C.54
343.86
734-4C
18360.00 1 9 0 4 9 .5 7 ^
i 224 . 0c
J / Ril^xrie (District)
7}4.40
tsstuiated tax
revenue (8s *000)
37.54
1B360-CO
Total TKGS'I
taxable turnover
<8a *000)
T u revenue as
a proportj on of
tax potential
(per cent)
1224.'JO
Total aarketahxe
prttductiors
(K. 000)
Ricalyftu*
("5-76
T3 t ?JT7
fr*ir*4tm af
tA B U
( 153 )
( 154 )
Hence, we have
The
It could be seen
Thus,
17521.74
19626.53
116.89
115.63
129.52
142.83
39.68
16108.25
16611.28
17661.27
21171.98
24992.66
3f>0.00
*50. 00
205.00
b45S-2:>
16978.21
<8045.0"
: Jfl iS.OC
sbyjy.y,-
197= -76
1976-77
1977 78
!976-79
>979_8c
^0-2 ;
'
17712.67
100.00
15153.26
1326*. 00
2/
"
147 . err
128.54
118.75
115.86
103.22
100.00
d itie s
subjected
to sa les
taxes
21166.10
21643.43
15153-28
197475
prices
18.97
6159.67
32466.99
23-31
6721.04
28833.04
27820.46
31128.99
24.03
5707.66
23752.67
23306.50
11.67
Short
f a ll as
percen
tage of
poten
t i a l tax
(per csnt)
17.97
2174.77
Short
f a l l of
tax
c o lle
ction
J717.1l
18633.08
15153.28
Sales tax
potential
including
additional
taxation
(& lakh)
20689.12
20300.69
18283.02
15153.28
Estimated
s a lss tax
potential
at current p rices
Estlaated P n ce
sa les tax index in
potential respect
15153-26
Index of
income
fro* trade
sector at
constant
prices
(per cent)
*97^5
Year
Hypoth~o/
t ic a l
sa le s tsx
revenue
at 197*-75
base
Addi
tio n a l
teat
lae&surse.
General-'
sales
taxe*
(n et)
TdKLB 7 .1 4
( 153 }
( 156 )
4
that the adm inistration oi the tax c a lls for an effe c tiv e
Enforcement Wing,
Enforcement Wing
and the D is t r ic t
In
Madurai
( 157 )
which involve State-wide inv estig atio n and are complicated
in n a t u r e
There are
each headed
The adminis
The
( 15C )
Checkposts
E ffe c tiv e checking of evasion of the first-point
tax re q u ire s,
among other th in g s,
e ffic ie n t ways of
Thus,
checkposts
Lokanathan (NCAER, 1 9 6 5 ) .
As the Department
from 13 in 1963
checkposts in the S t a t e .
The checkposts are located either at the border
of the State or in the v ic in it y of some important towns.
The former could be termed border checkposts,
la tte r in te rn a l checkposts.
22 border checkposts.
and the
1 5 9 ).
( 160 )
The importance of the checkposts, however, l ie s
in the fact that the documents received by these posts
help the Department to monitor the flow of goods.
This
The
A fter v e r i f ic a t io n ,
In th is
any ir r e g u la r it ie s
such as co llectin g
F i r s t , the
Shop
( 161 )
TABLE
7 .1 5
1977-78
1 978-79
1 97 9-8 C
1 . Shop Inspection
i ) No. of shops inspected
i i r N o . of test purchases made
i i i ) No. of extracts v e r if ie d
4186
2253
2029
4401
2538
1858
12150
3319
478 5
2778
889
225
2593
8260
4608
343
4065
298
7 .3 9
7 .5 1
3 6 .6 8
0 .8 9
1 .0 4
1 .4 9
1 .42
1 1 .7 7
7 .4 8
5326264
11134
4843501
30867
5353481
96617
3567
764
23703
1597
32106
6541
29.41
3 6 .0 0
1.08
3.66
6 8 .9 6
1 5 .8 5
1130
116
1440
165
5991
502
Source;
( 162 )
roughly by three times in the year 1979- 80.'
Commensurate
Secondly, the
A ls o , the
F in a l l y ,
But an
1980-81
( 163 )
1979-oO to 5 0 . 6 5 lakh in 1 9 8 0 - 8 1
Information r e la tin g to
d eleted
cases
Revenue
effect
10.62
S ta in le ss steel goods
Tractor parts
Commission agents
3 .4 0
2 .8 3
Chemical
1 .00
Hotels
1 .5 0
0 .6 4
The above data show that the Enforcement Wing raised the
highest revenue from a rtic le s of stain less st e e l, whereas
the number of the detected cases were only fo u r. Conversely,
13,30,410
8,239
664.73
298.40
Cases in*liich
defects Jre noti
ced
Amount
ompoundingfe. coll
ected Cits , *000)
22
Vehicles'tlat have
passed through
checkposts
Checkpoints
Border
489.74
2412.20
23,485
39,65,100
53
Internal
Sources
788.14
3076.93
282.25
1436.94
7,81 0
13,63,384
22
1980-81
586.11
3512.47
25,961
36,99,197
53
Internal
868.36
4949.41
33,771
50,65,581
75
Total
(Number)
31,724
52,95,510
75
^Border'
7.16
To tal
TABLE
( 165 )
in hides and sk in s, the number of cases was the maximum
but the revenue effect was not la r g e .
As regards the modus operandi of evasion o f ta x ,
the data available from the Madras D iv is io n for the year
Number of
cases
E le c t r ic a ls and steel
S ta in le s s steel and chemicals
O il and o il products
Pulses and grams
Turnover
involved
Revenue
effect
10
41 .0 5
1 .5 4
9 .5 6
0 .5 5
53
2 2 2 .9 8
1 6 .1 9
1 3 5 .3 5
5 .4 3
From the above data it can be seen that the highest revenue
loss that could have occurred in the absence of the
Enforcement Wing was in respect of o il and o il products.
The data a v a ila b le for the Coimbatore D is tric t
alone for the year 1 9 8 O-S1 reveal the fo llow ing in respect
of d ifferen t methods of evasion:
(Rs lakh)
P a rticu lars
Number
Volume of
Tax in
of cases suppression volved
B ill- trading
Exchange of b i l l s (d ir e c t ly )
Exchange of b i l l s through
interm ediaries
Bogus b i l l s
C o u n terfe itin g of b i l l s
M anipulation of b i l l s
2
12
2 2 .2 6
17.31
0 .8 9
0 .6 9
3
17
3
16
33.01
9 4 .9 4
12,31
4 3 .1 5
1 .32
3 .8 0
0 .4 9
9 ,0 0
TOTAL
53
2 2 2 .9 8
16.19
( 166 )
The Enforcement vVing has made a special effort to
quash tax evasion through
b ill- tra d in g .
Some of the
(ii)
(iii)
(iv )
vouchers to
in inspections
re su ltin g in
extent of
1J
( 167 )
(ii)
Scrap
The
But, th is is a separate is s u e .
Our concern
( 168 )
Among various methods referred to in section 2 of
th is chapter,
In
them to go scot f r e e .
So , we may be able
( 169 )
Normally, the re g istra tio n procedure involves
submission of aa
uy the
dealers to the
In Tamil Nadu, th is
As a precautionary
it is recommended th a t ,
as in West
Authority, t h is
of the applicant d ea le r.
After
Both these
( 170 )
absence.
It i s ,
th ere fo re ,
Th is could, however, be
the
issued by the b i l l
It i s ,
th erefo re,
strongly
and the work done by the Enforcement Wing would enable the
Department to check evasion of tax through both non
reporting and under-reporting.
( 171 )
Strengthening of the Enforcement Wing
The e x istin g organisation o f the Enforcement Wing
has normally gone in for T h e
compounding f e e .
There i s
The
The
goes in favour 0 1 T h e
accused.
The case
We note that
G en erally ,
It i s ,
th erefo re,
strongly
Whenever prosecution
172 )
and a ffe c ts the morals of the honest dealer who ultim ately
loses as compared to the dishonest p erson.
In s 'u n c t io n s
should not be
T h is
As the ex istin g
the tax matters in the same sp irit as the persons from the
Enforcement Wing do.
It i s ,
th e re fo re ,
T h is C e ll
But the
( 173 )
oppecially train ed to take up tax matters before they
are
In v e s tig a tio n ,
A lso ,
F ir st,
fu rn itu r e ,
checkposts (Table 7 . 1 7 ) .
Secondly, no f a c i l i t i e s are
( 174 )
TABLE
7 .1 7
P a rtic u la r s
1.
M ajor
Minor
ohe2k
posts
ohook-
To tal
pObOS
16
thatched sheds
40
46
rental b u ild in g s
14
19
( i v ) government b u ild in g s
24
28
( v i ) telephone f a c i l i t y
13
15
( v i i ) provision of w eigh
bridges
19
56
75
(ii)
(iii)
Total checkposts
( 175 )
With the ex istin g meagre f a c i l i t i e s and the lack
of needed manpower, the checkposts cannot perform th eir
jobs e ffic a c io u s ly i
In
At some o f the
Such delays
(in c id e n t a l l y ,
F in a l l y , i t i s
( 176 )
s t a ffe d .
manned by
etc*
In a d d itio n ,
each checlcpost
supporting s t a ff of loadmen,
.call- office
check
The
In te r n a l checkposts, however,
a State;
( 177 )
cannot be e ffe c tiv e ly u t i l i s e d partly because th e ir
numbers are too large to be handled.
It i s obvious that
It
business community.
the
1 9 7 4 ).
(Govern
th erefo re,
should
elim inate a
( 176 )
major part of harassment to the business community, but
would not seriously a ffe ct the m onitoring of the flow of
goods into the S t a t e .
structure of the t a x .
In
f a c ilit a t e d evasion of th is k in d .
In an attempt to counter evasion in respect of
groundnut o i l , Government have recently placed it under
the multi-point levy (at 2 per c e n t ).
an ad hoc response.
T h is represents
The
(179 )
p rin c ip le of the value-added tax has to be incorporated
into the multi-point
'.lit..
As recommended in Chapter 4 ,
b)
c)
d)
( 180 )
e)
f)
g)
h)
and
( 181 )
Annexure 7 .1
Commodity Flows and Evasion of Sales Tax in
Tamil Nadu Case Studies of Automobile
Spare P a rts . Groundnut. Kernel and O i l
INTRODUCTION
T h is
B e s id e s , these commodities
These may
( 182 )
AUTOMOBILE SPARE PARTS AND COMPONENTS
I ntroduction
The automobiles group brings in a b ig chunk of
sales tax revenue in Tamil Nadu.
It s y ie l d ranges between
Revenue from
The
Further,
,o f roads
in 1981
( 183 )
average n atio n a l rate
(Table A . 7 . 3 ) .
As regards m anufacturing a c t iv it y , Tamil Nadu is
one of the lea d in g manufacturers of motor v eh icle s in the
country (Table A . 7 . 4 ) .
I t manufactures commercial v e h ic le s ,
It is l ik e ly to enter
and mopeds.
Other major
"Bombay alongwith
and Kolhapur,
(NIPFP,
1 9 8 1 ).
It manufactures
and ( i i i )
(ii)
the manufact
the o r ig in a l equipment
They are
( 184 )
A unique feature of the auto- anciliary sector is
the m u ltip lic ity of items produced.
parts covers about 4000 item s.
The l i s t of auto
B e s id e s,
a p a r tic u la r part
E le c t r ic a l p a r ts ;
steering p a r ts;
(iii)
The
( i ) Engine p ar ts;
categorised
They have th e ir
It i s in th is sector
For th eir
( 1S5 )
as r e g is t e r e d o f f i c e s .
I n the assessment y e a r 1 9 o 0 8l
T h e m ain co n ce n tratio n
(ro u g h ly h a l f o f th e t o t a l )
and th e i*est are f a i r l y
(T a b l e A . 7 . 9 )
o f t h e s e d e a l e r s i s i n M adras
d is tr ib u te d in th e State
r e g i s t e r e d with, th e D e p a r tm e n t,
o f which. 9 0 p e r cent
T h e r e are 5 m a n u f a c t u r e r s o f
4 of them i n M a d r a s
and one i n M a d u r a i.
A ls o , i t s contribution to th e t o t a l
The other
( 186 )
f 0r Estim ation of Tax Evasion
Eor estim ating the extent of tax evasion, we have
worked out fir s t the p o ten tia l of the tax in the S ta te .
This could be done through two alternative methods, v i z . ,
the production (or supply) method; and the consumption
(or demand) method.
(or input)
demand
i.e.,
estimated the
This i s done by
( 1C7 )
1J
( 168 )
tax.
It
Some of the
This is
checkposts.
Besides,
( 189 )
(Government of
Roughly 30 to
South Arcot,
Prom among
The production
Periyar
( 190 )
Wide
(Richard L .K . Ohls, 1 9 6 1 ).
( 191 )
Such growers
favourable price.
As regards the market structure, selling and
( 192 )
Re^ulated Markets
One of the best, regulated markets for groundnuts
is in South Arcot
After
The traders
( 193 )
The
No fee is collected
In this
( 194 )
I f the
In
( 195 )
The
( 196 )
n/
requirements (21 per cent).-^ Thus, we have deducted
31 per cent of the total ./hicia v/ould not go to the market;
69 per cent v/ould be the marketable surplus (Table A .7 . 2 0 ) .
This could comprise the potential tax base for the depart
ment.
( 197 )
This
( 19& )
GROUNDNUT OIL
rotary
crushed by
The
There is no restriction
of groundnut o il as w ell as on
( 199 )
( 200 )
The
Estimates for
ction plus net imports form the basis of the tax base for
computing potential tax revenue for the commodity (Table
A .7 . 2 3 ) .
( 201 )
This
The modus
This
The purchases
Then the crushing
is done during i,Ie nxght and the oil and the cake are
despatched before dawn to escape detection.
I f on inspec
( 202 )
Loss of Time
1. Number of vehicles passing through
a.
border checkposts
136S3G4
b.
internal checkposts
36991 97
c.
total
5065531
30
border checkposts (H r s .)
b.
internal checkposts (H r s .)
1849599
c.
total (H r s .)
2532791
(a+b)
683192
15.23
10406740
b.
28174088
c.
total (Kms.)
38580836
(a+b)
3 .9 5
b.
11.14
c.
15.25
4.11
( 203 )
B.
Route
Distance
Time
required
(H r s .)
Freight
(per
tonne)
1.
Delhi - Bombay
1309
90
530
2.
Delhi - Calcutta
1475
96
580
3.
Delhi - Madras
2278
1 44
1010
4.
Delhi - Tirunelveli
2705
178
. 1 000
5.
Delhi ~ Trivendrum
2891
192
1110
6.
Delhi - Madurai
2565
170
1010
7.
Delhi - Coimbatore
168
6.
Delhi - Bangalore
2494
2086
17883
1174
TOTAL
930 '
900
136
7070
Note ;
15.23
(Rs per
0.395
( 204 )
TABLE
A .7.1
1976-77
1977-78
1978-79
477.42
453.69
569.39
644.22
3 6 .6 0
28 .98
3 2 .9 5
3 3 .1 4
4 .0 5
3 .4 8
3 .7 9
3 .5 5
3 .3 2
2 .8 4
3 .1 4
3 .1 0
1565.44
1 7 28.3 0
1943.73
1304
1979-80
11 .06
12.01
1 1 .5 0
1 0 .7 0
9 .07
9 .7 9
9 .5 2
9.53
11797.56
13038.28
15033.82
18168.05
2581.03
2958.56
3123.27
2 6 12.3 4
14378.59
15 996.84
18157.09
20780.39
Source:
11
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Suepeneion and
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19.57
(8 .8 3 )
221.66
(100.00)
12.26
(7 .0 3 )
174.41
(t o o . 00)
6.71
(4 .7 6 )
140.84
(100 .00)
131.06
(100.00)
7.21
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41.97
(18.03)
6.36
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7.56
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36.55
(2 0 .9 6 )
41 .44
(18.70)
(7 .3 2 )
16 .23
95.25
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1974-75
7 .2 3
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25-95
(21-27)
30.38
(2 3 .1 8 )
32.36
( I P .55)
16.60
(9-52)
69.09
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1973-74
6.58
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2S 58
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1972-73
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12.47
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1971-72
252.35
(100.00)
29.83
(11.82)
7 .5 5
(3 .0 0 )
37.92
(1 5 .0 3 )
47.63
(1 8 .8 7 )
18.64
(7 .3 9 )
110.76
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1975-76
270.74
(100.00)
26.99
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10.11
(3-73)
43.91
(16.22)
51.73
(19.11)
22.95
(8 .4 0 )
115.05
(42.49)
1976-77
Source:
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(100.00)
30.22
(10.25)
10.39
(3-53)
42.12
(1 4 .3 )
57.61
(19.57)
22. *4
(7 .6 2 )
131.65
(44 .7 1 ;
1977-78
c w w o w t i and Farta in M i .
P L t o P m o t o U
133.20
(100 .00)
TOTAL
Hot* t
23-38
0 7 .5 5 )
Other parte
6.86
(5 .1 5 )
23.75
(1 7 .8 3 )
Tranemieeion and
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Equipment
10.56
(7 .9 3 )
41.29
(3 1 .0 0 )
1970-71
Electrical parte
Bogina parte
Component group
foyftw ttm
A .7.7
210
TABU
402.13
(100.00)
387.96
(100.00)
20.50
(5 .6 0 )
14. U
(3-513
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87.921.8 '
31 .3
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1979-6C
40.57
(10.46)
12.16
(3-13)
65.01
(16.76)
79.76
(20.56)
30.66
(7 .9 0 )
159.80
(A1.19)
1978-79
501.27
(100.00)
23.83
(4 .7 5 )
16.03
(3 .2 0 )
90.53
(18.06)
113.85
122.7.}
36.68
(7 .3 2 )
220.35
(43.96)
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23
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|6l ,306
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376,022
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2,161,447
54,365
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966,283
221,047
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82,575
5* ,872
5,211
160,713
255,410
1,266,355
GKAKB TOTAL
TOTAL
Hydraiiir- puaps
t tsers
TOT At
Fuel gauges
Astteters .
Te&perature gauges
Pressure gauges
Wiper sct;.rs
Wip*r artt-r asi-d fclatfes
Electric horns
Hona relasrs/nngs
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Air brakes
Brake assevabl^y
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iffheele
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Propeller shafts
U*i . ero*
4x1 e shafts
Qlntch faciag
Clutch plfttes/gisctt
Clutch nmmsmblf
ig s j aa s ||gasa -gg
*I,
9 #407
26,780
3,S69
68,538
191,960
3,932,071
83,366
144,437
16,385
5.949
7*9l
6,659
1 1 , 180
2,941
1 .949
26,153
6,332
S. 131
6 ,112
19*000
25,720
10,922
136,515
1
2
4
1
-
5
2
175,800 10
4
39,501
36*983 2
219,790 2
870,746
57,152
3,8-76
215,579
43,439
19,364
28,205
19,315
*0,052
25" , 1 39
52,795
93,604
23,676
22.550
3^8,152
ir , s * r r-
281,606
-*r
30,055
6,443
403,514
5, 364,601
2,444-
135.631
325,948
227,497
175,865
546 , 0*3
312,662
32,806
SO , 38c
520,767
200,457
269,310
5,786
5 180,000
327,362
102,387
530,807
202,159
67,513
254,083
531,929
352,350
353,596
321,483
206,204
40SI, c,/*Icx
29*800
2,172,199
53,662
104,967
" 4.437
1,025,821
RA
239,589
112,935
303,982
3,792
83,649
54,651
270,830
741,470
1,315,898
10
4
*
2
5
204,976
4,021,296
69,008
7,111
31 ,670
141,161
26,933
6,436
16,056
7,202
8,345
2,301
2,234
25,339
11,027
15,978
5,333
7,463
6,514
3
3
3
4
2
3
3
1
1
1
t i,j15 2
90,282
101,354
213i657
136,545
1 SO ,500
$79*007
263,355
HA
31,013
20,204
24,443
58,132
4,113
236,130
44,131
24,667
49,907
99,890
23*023
313,175
12,253 -
3
3
3
-
49,393 3
2,054 2
70,634 245,675
4,714,143
13,614
109,780
149,250
16,619
4,460
7,162
6,996
1 3,213
26,495
3 #0 1 3
2.786
9,056
7,037
**3,893
129^643
4,730
15,305
237,500 10
103,582 4
122,190 1
222,295 2
> W
r%/V
W\
,2271646
& 3 , * j*
108,385
1*024*404
HA
1,044,948
HA
375,154
5,496
159,367
69,734
300,100
58.771
116,407
22,797
22,564
61,079
5,597
291.271
62,247
31,250
46.771
22,044
81,651
1 , 162,882
803,12*
270,441
336,542
trwm
2,406
HA
412,386
299,360
85,542
527,3C?
201,555
34*839
327,435
58i,956
400,480
346,633
232,784
191,501
-
65,280
133,466
4,991
33,500
2 *294*600
396,943
11,785,272
1,075,546
5,480
156,085
416,799
264,921
824,303
1,123,565
95,022
75,917
5 012,280
238,286
HA
50,085
2,051
71,038
1 1 5 .1 *
160,210
14,180
17,45?
4 ,6 $
7 ,5
9,601
307(S
2,790
8,145
9,291
7,381
14,401
30, 80t
15*928
133 >
2*3*906
107*710
1 61 f1 99
294,955
40,055
59,378
27,101
294,864
67,36$
32,598
6^485
26, 545
22,785
7 4 ,6i4
68,144
123,650
366,800
13,174
( 212 )
TABLE
A .7 .9
Regis
tered
dealers
Assess
ees
Manufa
cturers
of parts
110
(1 0 .4 8 )
110
(1 1 .4 8 )
Tirunelveli
93
( 8 .8 6 )
71
( 7 .4 1 )
Coimbatore
72
( 6 .8 6 )
72
( 7 .5 2 )
Pollachi
2
( 0 .1 9 )
2
( 0 .3 1 )
Salem
78
( 7 .4 3 )
( 6 .3 7 )
Vellore
100
(9 .5 2 )
75
(7 .8 3 )
Udhagai
17
(1 .6 2 )
11
(1 .1 5 )
Madras
(South)
243
(2 3 .1 4 )
233
(2 4 .3 2 )
89
(8 0 .1 8 )
2
( 4 0 .0 0 )
144
(3 5 .0 4 )
Madras
(North)
212
(2 0 .1 0 )
212
.( 2 2 .1 3 )
11
( 9 .9 1 )
2
(4 0 .0 0 )
199
(4 8 .4 2 )
Madurai
123
(11.71 )
111
(1 1 .5 9 )
5
( 4 .5 0 )
1
(2 0 .0 0 )
32
(7 .7 9 )
Division
Trichy
TOTAL
Note:
1050
( 1 0 0 .0 0 )
61
958
( 1 0 0 .0 0 )
Manufa
cturers
of vehi
cles
5
( 4 .5 0 )
Impor
ters
2
(7 .0 6 )
(1 .7 0 )
1
(0 .9 0 )
111
( 1 0 0 .0 0 ) (1 0 0 .0 0 )
Source:
411
( 1 0 0 .0 0 )
Same as Table
A .7.1
( 213 )
TABLE
A.7.10
(1976-77 to 1979-89)
(Rs lakh)
Commercial
taxes
district
1976-77
1977-78
1978-79
1979-80
Compound
growth
rate (per
cent) per
_ annum _
Madras
33 0.89
(6 9 .3 1 )
31 7.55
(6 9 .9 9 )
388.06
(6 8 .1 5 )
426.67
(6 6 .2 3 )
10.11
Madurai
71 ,71
( 1 5 .0 2 ;
67,46
(1 4 .8 7 )
8 0 .8 0
(1 4 .1 9 )
116.16
(16*03)
17.67
Coimbatore
3 4 .55
(7 .2 4 )
25.95
( 5 .7 2 )
45.42
( 7 .9 8 )
42,63
(.6.62)
1 2 .6 4
Rest of the
State
40.28
(8 .4 4 )
42.73
(9 .4 2 )
55.11
(9-. 68)
58.76
(9 .1 2 )
14.88
TOTAL
477.43
( 1 0 0 .0 0 )
Note ;
453.69
( 1 0 0 .0 0 )
569.39
( 1 0 0 .0 0 )
Sources
64 4.22
( 1 0 0 .0 0 )
11 .92
Same as Table
A .7.1
( 214 )
TABLE
A .7.11
Year
Buses
under
State
transport
corporations
Pri- Taxis
vate
etc.
buses,
trucks
and
lorries
Private
motor
cars
Motor
cycles
mopeds
etc.
Three
Total
and four
wheelers
and other
vehicles
1976-77
4953
26671
116 11
54392
100162
8615
206410
1977-78
5068
28405
11836
56877
109508
8677
220371
1978-79
5601
31020
12814
58242
119628
9671
236976
1979-80
6407
35351
1 2443
59183
131410
10315
255109
Source ;
Same as Table A .7 .2
(215
TABLE A .7 .1 2
Estimate of Per Vehicle Consumption of
Automobile Part_s in Tamil Nadu
(Rupees)
Year
T axis,
ambu
lance
etc.
Private
cars
Motor
cycles,
mopeds
etc.
Three am
four whei
lers and
other
Vehicles
Pj
Private
buses,
trucks,
and
lorries
CD
Buses
under
State
trans
port
corpo_ rations
1976-77
9602
14773
2360
944
472
1180
1977-78
10081
15510
2478
991
496
1239
1978-79
10670
16416
2622
1049
525
1311
1979-80
12206
18778
5000
1200
600
1500
( 216 )
TABLE A .7 .1 3
Estimate of Consumjption of Automobile Parts in
Tamil Nadu
(Rs lakh)
Buses
under
State
trans
port
corpo
rations
Private
buses,
trucks
and
lorries
1976-77
465.59
39 40.9 9
274.02 513.46
472.76
101 .66
5776.48
1977-78
510.91
4405.62
2 9 3 .3 0 563.65
543.16
100.51
6424.15
1978-79
597.63
50 92.2 4
33 5.98 61 0 .9 6
628.05
12 6.79
7391.65
1979-80
7 8 2 .0 4
6638.21
3 7 3 .2 9 7 1 0 .2 0
78 8 .4 6
154.43
9446.93
Year
Taxis
Private Motor
motor
cycles,
cars
mopeds,
etc.
Three
and four
wheeler s
and other
vehicles
Total
consumption of
auto
parts
Note :
4 8 .3 5
9 5 4 3 .7 3
( 10 0 . 00 )
3 1 10.3 2
(3 2 .5 9 )
64 33.9 3
(67 -41 )
Taxable
turnover
(TTO)
4 0 .0 2
23144.82
( 1 0 0 . 00 )
3 . Total tax
4. Line (2 ) as
per cent of
lin e ( 1 )
6 6 1 4 .8 9
(2 8 .5 9 )
16529*93
( 7 1 .4 2 )
Gross
turnover
2 . As input
1 . As fin a l product
A ,7 .1 4
Sources
1 5 .1 6
9 4 4 .7 7
( 10 0 . 00 )
12 4 .3 9
( 1 3 .1 7 )
8 2 0 ,3 8
( 8 6 .8 3 )
Scales tax
collection
'1 5 .1 7
991.01
( 10 0 . 00 )
13 0,57
( 1 3 .1 8 )
8 6 0 .4 4
( 86 . 8 2 )
10 .3 8
4 .20
1 3 .3 7
. 100)
E ffective
rate of tax
(per cent)
Total
sales
tax
Same as Table A .7 .1 .
1 5 .4 3
4 6 .2 4
( 10 0 . 00 )
( 1 3 .3 7 )
6 .18
40; 06
( 8 6 .6 4 )
Surcharge
TABLE
( 217 )
7 5 7 .6 2
8 8 7 1 .7 2
11 1 1 4 .1 0
5778.48
6 2 24.1 5
7 3 9 1 .6 5
9446.93
Year
1976-77
1977-78
1978-79
1979-80
68 1 .4 7
1298.21
184.11
45 6 7 .5 9
Source :
5 6 9 .3 9
10 15.7 7
1 4 4 .0 4
6 5 3 .9 9
4 4 6 .3 8
42 9.13
6 4 4 .2 2
4 5 3 .6 9
882.82
1 2 5 .2 0
3 1 0 6 .0 7
3 5 7 3 .8 6
2 7 9 5 .9 0
3 1 6 .6 5
Actual
Short f a l l
sales tax of tax
collected collection
(T-T)
47 7.43
Total
estimated
potential
sales tax
7 9 4 .4 3
input _ _
EstTmat^d
potential
sales tax
(at 4 .2 per
cent)
112.61
T ax on
Estiraated
potential
consumption as
input
TABLE. A.'7 .1 5
( 218 )
5 0 .3 8
4 3 .9 4
48.61
3 9 .8 8
Shortf a l l as
percentage of
otential
( 219)
TABLE A.7.16
Area Under Groundnut. Cultiv a t ion in
India
(Major States)
(Hectares)
1975-76
1976-77
1977-78
1978-79
Andhra Pradesh
1330500
(18 .4 2)
1051300
(14.93)
1099400
(15.64)
1262800
(16.73)
Gujarat
1640700
(2 2.72)
1886700
(26.79)
1971200
(28.05)
2038900
(2 7.01)
Tamil Iladu
934700
(12.94)
890000
(12.64)
926000
(13.17)
990000
(13.12)
Other States
3315600
(4 5.92)
3214800
(45.64)
3031900
(43.14)
4246400
(43.14)
All India
7221500
7042800
7028500
7548100
State
Note:
Figures within
parentheses denote
the percentage of
total
Source:
Government of India,
Ministry of Agriculture, Director of
Economics and Sta
tistics, Estimates
of Area and i^rodu^
ctTon V f Principal
Crops in India,
197o-79, New Delhi.
( 220 )
TABLE
A .7.17
1976-77
1977-78
. 1978-79
Andhra Pradesh
1119400
(16.57)
5832200
(11.08)
1023400
(16 .8 1)
1128500
(17.67)
Gujarat
2034600
(3 0.12)
1898400
(36.01)
1763300
(28.97)
1826500
(28.60)
lamil Nadu
1053410
(15.60)
785623
(1 4 .9 2 )
1149840
(18.89)
1128540
(17.67)
Rest of the
States
2547290
(37.17)
1996677
(37.94)
2150560
(35.33)
2303460
(26.06)
All India
6754700
5263900
6087100
6387000
State
Note : 1
Production figures
axe supplied by the
Directorate of
Agriculture, Govern
ment of Tamil Nadu,
Madras.
2.
Source :
Government of
India, Ministry
of Agriculture,
Director of
Economics and
Statistics,
Estim atesof
Area. ancL Principal
Crops in India
New Delhi.
( 221 )
TABLE
A.7.1G
Name of the
District
1975-76
1976-77
1977-78
Chengalpat
South Arcot
North Arcot
Salem
Dharmapuri
58,637
1 ,4 2 ,7 5 6
2,29,4 21
90 ,8 2 4
59,232
55 ,1 4 0
1 ,4 6 ,1 5 2
2 ,25,8 21
99,563
57 ,494
61,565
1 ,4 3 ,1 5 5
2 ,2 2 ,2 8 7
95,587
48,236
Coimbatore
Tiruchirapalli
Pudukottai
Thanjavur
Madurai
1 ,0 0 ,5 7 1
56,508
43,542
41.327
5 6 ,3 1 6
94 ,266
53,923
4 4 ,7 0 0
29,475
52,423
Ramanathapuram
Tirunelvelli
The N ilg iris
Kanyakumari
2 7 ,4 1 0
' 9,678
'
3
2 ,4 8 0
22,553
9 ,3 4 ,7 0 5
TOTAL
1 ,0 4 ,1 5 6
6 0 ,6 0 0
48,381
40 , 481 '
61,078;
1 978-79
66 ,746
1 ,5 3 ,2 9 8 *
2 ,1 0 ,3 5 4
1 ,0 9 ,9 0 6
'5 4 ,4 5 7
6 7 ,0 0 0
1 ,5 4 ,0 0 0
2 ,1 1 ,0 0 0
1 ,1 0 ,0 0 0
5 ^ ,0 0 0
1 ?27 ,0 3 9
62 ,555
49,462
4 6 ,7 5 0
62 ,546
1 , 3 1 ,000
2 5 ,0 0 0
1 5 ,0 0 0
6,694
24,998
1.3,623
1,764
' 1 ,819
2 3 ,8 7 2
1 4 ,5 0 ?
1
1,851
8 ,8 9 ,9 6 8
9 ,2 5 ,9 6 6
9 ,8 3 ,3 4 4
Sources s
1979-80
6 3 ,0 0 0
50 ,0 0 0
4 7 .0 0 0
7 0 .0 0 0
2 ,0 0 0
1 0 ,0 0 ,0 0 0 i
1.
Government ofv1Tamil
Nadu, O ffice
the
Diredtjo:* of Agricul
ture ", Madras.
2t
( 222 )
TABLE A *7 .1 9
gEOiiuction of Groundnut in Tamil Nadu
(Tonnes)
Name of the
District
1975-76
1976-77
1977-78
95,930
67,200
86,680
8 7 ,1 2 0
35,260
North Areot
2 ,5 9 ,0 3 0
1 ,8 5 ,5 7 0
2 ,75,61 0
1,7 1 ,3 1 0
1,18,4 30
aouth Arcot
1 ,7 2 ,5 7 0
1 ,6 2 ,4 7 0
2 ,1 8 ,9 2 *
2 ,0 6 ,9 0 0
1,14,0 10
94,790
* 4 ,0 1 0
6 8 ,000:
1 ,1 9 ,3 3 r
1 ,3 3 ,4 1 0
97,520
64,990
80,990
8 0 ,8 8 0
43,700
1,27*050
68,17(5
69,13-0
1 ,49,36 0
1 ,3 9 ,6 9 0
6 3 ,0 1 0
46,940
53,880
76,090
47,090
Pudukottai
38,010
52 ,0 8 0
37,360
53,480
25,650
Thanjavur
38,220
31,900
52,170
4H,870
1 6 ,0 9 0
Madurai
5 6 ,5 | o
52,423
52,370
8 7 ,2 2 0
65,670
Ramanathapuram
25,040
19 ,1 6 0
1 9 ,6 2 0
22,940
13 ,160
Tirunelveli
11,450
6 ,0 3 0
1 7 ,6 1 0
1 8 ,8 1 0
14,090
Kanyakumari
2,630
1 ,2 9 0
1,940
1,820
Sources:
1*
2*
3.
Chengalpat
Salem
Dharmapuri
Coimbatore
Tiruchdrapalli
1978-79
1979-80
NR
( 223 )
TABLE A .7 .2 0
Estimation of_Marketable Surplus (Excluding Net imports)
of Groundnut in Tamil Nadu by "Production Method
(.1975-76 to 1979-80)
Year
Total
Output PreSeeds
Wasproduground- marke- for
tage
ction of nut
ted
-sowing (togroundkernels consura-9(tonnes)nnes)
n u ts(p o d s)( tonnes)ption
( ?000) ( 5000)
(tonnes) ( ?000) (non(*000)
monetised)
(tonnes)
( '0 0 0 )
MarkeMarkettable
able sursurplus plus ex
(tonnes)eluding
2-(3+4+ net impo5)
rts
(*000 )
(Rs lakh)
1975-76
1053
769
77
123
30
531
12272
1976-77
786
574
57
92
29
396
10506
1977-78
1150
839
84
134
42
579
17377
1978-79
1129
824
82
132
41
568
13856
1979-80
654
477
48
76
24
329
1 0764
10G87
10887
327
51 .07
167
4 8 .6 2
159
1979-80
1 0 5 .0 3
1 4 3 .3 5
5 9 .0 5
248
41 .19
420
1401-4
14014
173
1978-79
.............
1 0 8 .9 9
2 9 3 .2 8
5 2 .1 5
(7 )
7 4 .5 7
393
2 5 .4 3
527
17575
17575
134
134
194
(6 )
)
D ifference as
percentage of
actual tax
turnover
(6-r 1)
7 2 .8 3
1977-76
Difference
as percentage of
potential
tax
estimate
f K * s a e h i _ (6 +.)
Difference
between
potential
tax.estimated and
actual tax
Nadu
42.01
57 .68
319
10626
1C626
4 7 ,8 5
(5)
184
(4 )
*.
1976677
(3)
372
.... ..
Index of
tax
re a lisa
tion
( * 4)
12412
~ (2 )
Potential
tax re
venue
(Rs lakh)
12 412
H I
Potential
tax base
(Rs lakh)
176
Marketable
t>arplus
including
^et
iiupozts
(Rs lakh)
1975-76
fear
Actual
"tax
revenue
(Rs
lakh)
Tamil
(1975-76 to 1979-80)
Groundnuts in
Actual and Potential Tax Revenue and Index of Tax Effort for
TABLE A .7.21
( 224 )
( 225 )
TABLE A .7 .2 2
11 735.79
1975-76
18 4.36
1 4257.41
1976-77
1 6 8 .4 6
1 3 4 .2 4
16 84 0 .4 4
1977-78
1 4 8 .7 0
1 7 2 .5 2
17 25 7 .0 9
1978-79
1 5 9 .1 4
19 558.08
1979-80
17 8 .0 6
14 7.4 8
10687.21
85 6 3 .7 3
15 4.02
S ales lax C o llection jln Tamil Nadu f r om the Purchase and Sal e of
(1972-73
6 9 4 1 .^6
329258
1979-80
Note s
331279
129199
223705
227951
155750
1 2 ,9 2 ,1 9 4
9 6 ,4 2 ,9 1 0
7 4 6 3 .6 0
15,01 ,1 74
9 ,7 3 ,4 8 4
57 76.3 3
6585.51
6 2 5 0 .3 0
O il production
(Rs *000)
39218
52456
61050
395&1
Net imports
of groundnut
(Rs *000)
It i s assumed tl.j.t a ll the marketable surplus of groundnut kernels .plus imports are
taken for purpose o f o il crushing in the S ta te.
Sale of groundnut kernel fo r bakeiy
purpose is estimated roughly at 0 .5 per cent of production which i s relatively
n e g lig ib le when ie look at the quantity of kernel sent for o il m ills .
Therefore,
purchase of kernel out of the marketable surplus for Kadali M itta i" is included in
the pre-marketed consumption.
0 .5 per cent of production is exchanged for paddy in
the barter system by the groundnut growers in the v il l a g e s .
Therefore, that part
of the quantity of groundnut does not come under the purview of the market operations.
2021
5157
55544-6
1976-79
573603
584491
5316
579175
1977-78
399360 .
39571C
1976-77
Recovery of
Wholesale
groundnut o il
price
or o il produc- (P 1 )
tion (39 per
cent of weight
of kernels
(tonnes)
(1976-77 to 1979-CO)
Net import Quantity
cf ground- of kernels
nut kernels available
from other for o il
States
crushing
(tonnes)
(tonnes)
3642
Year
Marketable
surplus of
groundnut
kernels
(tonnes)
A .7 .2 3
TABLE
( 226 )
1976--77
1977--78
1978--79
1979--80
Year
1 4 ,8 7 0 15 ,402
16,846
14,740
(1 )
1o,1 3,065
1 5 ,6 2 ,2 2 3
1 3 ,4 4 ,7 4 9
1 0 ,0 3 ,5 0 7
(2 ;
(4 )
4 0 ,5 2 2
6 2 ,4 8 8
53 ,7 8 9
4 0 ,1 4 0
1 0 ,1 3 ,0 6 5
1 5 ,6 2 ,2 2 3
1 3 ,4 4 ,7 4 9
1 0 ,0 3 ,5 0 7
Potential
tax
revenue
(Rs *000)
(3
Potential
^ax base
t s 000)
3 6 .4 0
2 6 .9 6
2 7 .6 4
3 8 ,3 8
(5)____
Index of
tax
coliection
(1 t 4)
(1976-77 to 1979-80)
2 5 ,7 7 4
4 5 ,6 4 2
3 8 ,9 1 9
2 4 ,7 3 8
( 6 ) ____
Difference
between
potential
tax estimated and
actual tax
revenue
(Rs *000)
63.31
7 3 .0 4
7 2 ,3 6
8 1 ,6 3
(7 )
Difference as
percentage of
poten
t i a l tax
estimate
(6 * 4 )
Actual and Poten tial Ta,x Revenue and Index of Tax Ef fort
TABLE A .7 .2 4
( 227 )
2 7 0 .9 4
2 6 6 .7 3
16 0 .6 2
17 4.77
(8 )
Difference
as percen
tage of
actual tax
collected
(6-* 1)
6.
INFORMATION SYSTEM
I_ntr^du^ction_
In the taxation department the collection and
collation of required data, and their analysis are vital
c
for the proper enforcement of the tax and for the evalua
tion of the administration as well as of the impact of the
tax.
sub-systems are inter-related and the capability is builtin to transfer data between the different sub-systems.
The
( 229 )
(i
(i i
(iii
(iv
(v
(Vi
(v ii
(v iii
(ix
The
Information on commodity-wise
In view of t h is ,
( 230 )
The computer
Unlike in many
As a result
( 231
or
The system,
This is
I n it ia l l y ,
The technical
( 232 )
In Input-3 Form,
The Input-3
Form has however been tabulated for the year 1976-77 only*.
The data collected by the Department are despatched
to the Government Data Centre (GDC), Guindy, Madras, with
necessary batch to ta ls.
The
GDC to the DPC who in turn gets the lis t s re c tifie d , and
sends the correction lis t s to the GDC where the cards are
punched based on these correction lis t s and the infor
mation is stored o.n magnetic tapes corrected correspondin
gly.
( 233 )
The assessee is
A single
on annual return:
is
( i i ) based
returns A 2 ) .
The most important code in the existing system
relates to commodities which
code.
( 234 )
(ii)
(iii)
(iv )
All the above statements have been prepared for the TNGST
Act only.
As stated
23 5
-
EXHIBIT VfflrA*
( 236 )
It is
The
Through
Commodity-wise statistics is
the
Finally,
- ......... .
from the different systems,. nor has there been any effort
to reform the in.di\ x
systems.
It is recommended
(Exhibit 8 . B . ) .
f ... i,
: SAwSACttONS
OF
<?6.C0f*0
_L
"^ESSHCNT
SURVEY
MARKET
SEASexes
AH0
*6PCTiON
En f o r c e m e m t
5 yESUFtCATOfl
..W
Tf~*y
IN P U T
COMMODITY SURVEY
- .... ]
in f o r m a tio n
FROM
CMCKPOSTS
n o w of
T*
A P P ELLA TE
PROCESSING
OUTPUT
h
----------i
I
DSPUTT COHMISSONre {
(STATISTICS,
I
AND SCSeASCH) j
C O M M IS S IO N E R
1BXHTBTT VHflsT
0ATA STORAGE
( 239 )
Presently, the
It i s , therefore, necessary to
relations work.
The
He must be qualified
( 240 )
also required.
ting the amount of tax paid and the name and registered
address of the dealer is to be included.
The quarterly
following information;
(i )
(ii)
(iii)
(iv )
(v)
The unit
In addition, we would
( 241
annual return.
It is important that
We suggest that
This statement
should be prepared
( 243 )
The first box (^) would refer to the division, the second
one () would refer to the unit of administration (d is tr ic t ,
e t c .) , the third (@) would have the commodity codes, the
fourth one (* ) would refer to the rate of tax on the
commodity and the last box ( * * ) would be indicating the
registration number of the dealer.
As this f i l e w ill be
The regular
( 244 )
The
There
( 24-5 )
Whenever any
This statement
of
ri-e^yyould. be
'^6u ler.
Second, the
It is a recognised
( 246 )
The data
Besides, what is
Moreover,
i f the MIS
Besides
In fact
It is recomm
( 248 )
Summing Up
The information system is an integration of man/
machine system for providing information to support the
operations, management and decision-making functions in
an organisation. The system u t ilis e s computer fa c ilit ie s
and manual operations in such a way that the information
is best used to support the decision-making process.
In
We, therefore,
The computer
should help the department to cross-verify the intraState transactions on a selective basis and to monitor the
flow of goods across the State barriers.
Besides, the
9.
It was a
multi-point
On the basis of h is
In 1972, Mr. S .P .S r in iv a s a n
On
They were:
( 250 )
However, w ith
Its yield
The
B e s id e s the growth
h a s been r a i s e d th ro u gh a d d i t i o n a l t a x m e a s u r e s .
T h is
T h e h ig h e r
e x t e n t , be
a t t r i b u t e d to i t s r e s p o n s iv e n e s s to th e t a x b a s e .
i s p ro v e d by v a r i o u s
T h is
s t u d i e s a ttem p ted i n t h i s r e g a r d .
T h is h ig h e r c o e ffic ie n t
of e la s t ic it y
c o u ld b e i n t e r p r e t e d
( 251
to mean
higher in the
Only
The
Another group
( 252 )
specifically taxed
at
at
Luxury goods, in
15 percent.
Raw materials and other inputs are not taxed at high rates.
Machinery is taxed
at
The rates
of
6 per cent.
sales tax in Tamil Nadu and in some
ghee are taxed at relatively higher rates but tea leaf and
coffee-powfer are taxed at relatively lower rates.
From
( 253 )
Rates of consumer
Besides,
Besides,
F ir s t , certain
an institutional b a sis.
F if t h , certain agricultural
( 254 )
The
But, gradually,
However, in
( 255 )
It
A review should
As th is
( 256 )
State has already gained experience in the multi-point tax,
it would not be d iffic u lt to successfully administer the
value-added tax, which could be gradually extended to some
commodities too.
There are very fine gradations for different
commodities.
There is a
To promote
to raw m aterials.
Presently, there
The
( 257 )
It i s ,
output.
In case
is,
transfer.
This may mean some fa l l in the revenue in the
short-run, b u t .it is not going to have any significant
effect.
( 258 >
of industrial activity as
The assessees
The
has to get
This
( 259 )
coupled
with the registration of all dealers dealing in the firstpoint goods, has created a situation in Tamil Nadu where
the major portion of the time of the Department is spent
in completing many of the form alities.
Besides, these
( .2 6 0 )
More attentin
Even in
Tamil Nadu, this system has been provided for in the statute
for long.
virtually inoperative.
and below,
They have to be
To do so, and to
For t h is , i t is
The representatives of
( 261
not
But
In the
( 262 )
This
(b) from
Empirical estimates of
( 263 )
Whereas
It consists of two
( 264 )
22 border checkposts.
The importance of the checkposts, however, lies
in the fact that the documents received by these posts
help the Department to monitor the flow of goods.
This
The yield
The number of
( 265 )
declined.
Notwithstanding
that the maximum revenue could have been lost through oil
and oil products for want of more vigour and application
by the Enforcement Wing.
Some of the
was of consequential
It is of course a
( 267 )
In Tamil Nadu,
The Registration
absence.
is
This should be
Any discrepancy
the
( 263 )
establishment.
It i s ,
not be compounded.
An organisational problem concerning prosecution
Normally,
A I 30 , the
to take u^.
tax cases.
proponly trained
( 269 )
Vehicles
Secondly, it
( 270 )
It has been
Rs 1 1 .1 4 crore.
Their processing
With a view to
( 271 )
In
REFERENCES
Book s/Journals
Chelliaii, R . J . , and Sinha, Narain (1 9 8 2 ).
Measurement of
Tax E f f ort of St ate Governments t Somaiya
Pub'llcations "Pvt. L t d ., Bombay.
Chelliah, R .J . (1 9 6 7 ).
"E la sticity and Rate of Growth of
State Taxes", in Josh i, M. D. , Mobiiisation of
State Respurees, Impex In d ia .
Lokanathan, P .S . (1 9 5 7 ).
Report _on the Sim plification and
I mprovement of, .the. ,Sales T ax SystemJLn Ma.dra.s,
National Council of AppTied EconomicTResearch,
New Delhi.
Lokanathan, P .S , (1 9 6 3 ).
Sales Tax System in_Andhra Pradesh ,
National Council oT~AppTied "Economic "HeseaircH,"
New Delhi.
Lokanathan, P .S . (1 9 6 5 ).
Sales Tax Sys_tems in Madras,
National Council of Applied Economic Research,
New Delhi.
Lokanathan, P .S , (1 9 6 6 ).
Sales Tax System in Madras, A
Preview, National Council or Applied Economic
ITesearch, New D elhi.
National Council of Applied Economic Research (1 9 6 5 ).
Report of Simp1i f ication and I mprovement of Sales
Tax System in IfiacLrasV New D e lh i.
National Council of Applied Economic Research (1 9 7 1 a ),
Review of Sales Tax in Andhra Pradesh, New Delh i,
National Council of Applied Economic Research (1 9 7 1 b ).
Study of t h e S a l e s Tax System in Andhra Pradesh,
New Delhi,
( 273 )
Government Documents/Rep0rts
Government of Andhra Pradesh, Commercial Taxes Department
(1 9 7 9 ) . Aaministrative Rejport, Hy derabad.
Government of Gujarat (1 9 & 2 ) .
Report of the Taxation
Inquiry Commiss.ipn, Gandhinagar.
( 274 )
Government of Kerala (1 9 7 6 ).
Report of the Committee on
Commodity Tax atio n , Trivan arum.
Government of Maharashtra (1 9 7 6 ).
Report of the Sales tax
Enquiry Gommiteee, 1975-76, Report "by Yardi~
if. S . , Bombay .*
Government of Mysore (1 9 6 9 ). Mys.ore Taxation and Resources
Enquiry Committee,, Report, on S a l e s Tax, Bangalore.
Government of Tamil Nadu (1 9 7 4 ).
Rationalisation and
Simplif ication of Commercial Taxes Acts and~fell es,
Report by S .P Y Ifrini vasanT "(MinTeV)",' Madras
Government of Tamil Nadu (1 9 7 9 ).
Report of the T amil. Nadu.
Sales Tax Comm itteer Madras.
Government of Uttar Pradesh (1 9 7 4 ).
Re-port of. the Uttar
Prade.s.h Taxation Enquiry. C o m m i t t e e f Lucknow
Government of Tamil Nadu (1 9 7 9 ).
Madras.
Government of India (1 9 7 5 ).
Studies in Economics .of F a m
Management in .Coimbatore. Di s trict T l 97 0-7.1 to
1972- T O T New Delhi
Government of Tamil Nadu ( 1 9 7 8 ).
Madras.