REGISTRATION AND STAMPS DEPARTMENT : ANNAMAYYA DISTRICT

From To
Sri M.Muni Sakaraiah Sr. Audit Officer/Rs-Edit
District Registrar, Office of the Accountant
General Annamayya District, (Audit), D.No.27-37-158,8th
floor,
Rayachoty. Stalin Central Mall , Governerpet,
Vijayawada.

Letter No. LAR/1077/2022 , Dated: 24.05.2022

Respected Sir,

Sub:- Registration and Stamps Department – Annamayya District,

Rayachoty – Sub Registrar office , Madanapalle – AG AP Local
Audit remarks for period 2019-20 to 2021-22 – First replies by
the Sub Registrar , Madanapalle in respect of AG AP report No.
PAG (Audit), AP/AMG-III/RS Edit /3-54/2022-23/387 of SRO
Madanapalle – Submitted – Regarding.

Ref:- 1. The AG A.P Audit , A.P. Vijayawada report Lr.No. PAG (Audit),
AP/AMG-III/RS Edit /3-54/2022-23/387 Dt: 29/09/2022.
2. The Commissioner and Inspector General of Registration and
Stamps Memo No. LAR/2080820/ 2022 Dt:19/05/2023.

****
In obedience to the references cited , I humbly submit that , here
with submitted the first replies for the Ag Audit paras pertaining to Sub
Registrar offices , Madanapalle vide AG AP report No. PAG (Audit), AP/AMG-
III/RS Edit /3-54/2022-23/387 for kind perusals and further favorable action
in this regard.
Encl: 1. First replies of the SRO Madanapalle for audit report vide PAG
(Audit), AP/AMG-III/RS Edit /3-54/2022-23/387.

Yours faithfully,

District Registrar
Annamayya District
Rayachoty.

Copy submitted to the Commissioner and Inspector General of Registration

and Stamps , A.P. Vijayawada for kind information.
Copy submitted to the Deputy Inspector General of Registration and
Stamps , Kadapa Zone, Kadapa for kind information.

AG A.P., REMARK PERTAINING TO THE DOCT NO.218/2021 OF SUB-

REGISTRAR OFFCE, RAYACHOTY IN REFERENCE NO. OBS – 498737 OF
LAR Lr.No. PAG (Audit), DP Cell/AMG III/FN No.4-4-1 to 4-4-33/2023-
24/469 OF SUB-REGISTRAR OFFICE, RAYACHOTY ARE AS FOLLOWS:-

Reference Number: OBS-498737

Subject: Loss of revenue due to misclassification of Settlement Seed as
Partition Deed Rs. 4.45 Lakh
Document No. 218/2021
Reference Number: OBS-1231213

Subject: Loss of revenue due to under valuation of the property -

Rs.7.87 Lakh

Document No. 11399/2022

Date of 29/10/2022
Presentation

Schedule Item 1: Land - extent of Ac 0.44 Cents of Sy.No.101-P4B,

Property Kasbagollapalle Village, Rayachoti Municipality.

Item 2: Land - extent of Ac 0.56 Cents of Sy.No.101-P3,

Kasbagollapalle Village, Rayachoti Municipality.

As per Article 47A of Schedule I-A to the Indian Stamp Act 1899, Stamp
Duty at the rate of five per cent and Registration Fee at the rate of one
per cent are chargeable on Sale Deeds apart from Transfer Duty at the
rate of 1.5 per cent.

Further, as per C&IG Circular Memo No: MV1/8483/2013-2 Dt: 10-10-2013,

the valuation of rural properties shall be as detailed below:

Valuation of Rural Properties Method of Valuation

Case

Exact Survey number is found in The land rate of Form IV of the given
Form IV survey number is adopted.

Rate for Main survey number Adopt highest land rate of Form IV for
found in Form-IV but no rate the given main survey number and
found for exact match with sub preceding first matching sub division
survey number number is to be adopted

Rate for Main survey number Adopt highest land rate of Form IV for
found in Form-IV, but no rate the given main survey number without
found in Form IV even for first any sub number is to be adopted
sub division.
 When rate could not be found Rate of Form IV for the Survey No’s
with survey numbers mentioned mentioned in boundaries as per the
in schedule of property. above three rules is adopted.

On scrutiny of document, it was observed from the Sale Deed mentioned

above, that the Vendor sold the scheduled property by adopting
Rs.29,00,000/- per Acre. Whereas, the value of Sy.No.101 of
Kasbagollapalle Village, Rayachoti Municipality was Rs.1,34,00,000/- per
acre as per MVG Form IV.

Therefore, as per C&IG Circular Memo No: MV1/8483/2013-2 Dt:10-10-

2013, the market value of the scheduled property (Sy.No.101-P4B & 101-
P3) should also be considered as Rs.1,34,00,000/- per acre. However,
Registry did not consider this aspect and registered the document, which
resulted in short-levy of duties as detailed below:

Market Value to be considered (Ac.1.00 Rs.1,34,00,000

Cts*Rs.1,34,00,000/-) /-

Duties to be levied at 7.5% Rs.10,05,000/-

Duties already levied Rs.2,17,500/-

Short levy of duties Rs.7,87,500/-

On this being pointed out, the department replied that the matter would
be examined and a detailed reply would be furnished in due course.

Progress made in the levy and collection of deficit duties alongwith

remittance particulars may be intimated to Audit at the earliest.
 PART-II-(B)

(Other incidental Audit Findings)

Reference Number: OBS-1231156

Subject: Non-compliance of the procedure of deducting TDS @ 1%

on transactions above Rs.50 lakh

Section 194-IA of the Income Tax Act states that any person, acting as a
transferee and responsible for paying more than Rs.50 lakh to a resident
transferor as consideration for the transfer of any immovable property
(excluding agricultural land), shall deduct one percent of the sum as
income tax. This deduction should be made at the time of crediting the
sum to the transferor's account or at the time of payment in cash, by
cheque, draft, or any other mode, whichever is earlier. This provision does
not apply to persons referred to in section 194-LA.

It is the responsibility of the Sub-Registrar to ascertain whether the TDS

has been made for the transactions of Rs.50 lakh and above which will
enable the Income Tax Department to tax the legitimate amount.

During the scrutiny of the following documents, it was noticed that sale
deeds were executed between the Vendors and Vendees for the
consideration values of Rs.50 lakh and above. However, while verifying the
recitals of the documents, audit observed that the Vendees paid the sale
consideration amounts to the Vendors without deducting the TDS amount
and duly remitting the same to the IT Department in the name of the
Vendors, which was irregular. The details are as mentioned below:

Document Sale TDS @1% to be Deducted (in

No. Consideration Rs.)

(in Rs.)

3606/2022 72,89,000 72,890

3809/2022 50,22,000 50,220

4062/2022 80,00,000 80,000

5149/2022 65,41,000 65,410

 5310/2022 55,80,000 55,800

6385/2022 98,27,000 98,270

6592/2022 91,02,000 91,020

6929/2022 53,00,000 53,000

7052/2022 60,59,000 60,590

7633/2022 51,02,000 51,020

7915/2022 77,87,000 77,870

8768/2022 57,00,000 57,000

9004/2022 76,68,000 76,680

9563/2022 51,17,000 51,170

1149/2023 63,00,000 63,000

1818/2023 75,00,000 75,000

2773/2023 98,23,000 98,230

On this being brought to the notice, it was replied that TDS has been
collected in 3 cases vide Sale Deed No.s 12027/2022, 12051/2022 &
12119/2022 and action taken would be intimated in due course for
remaining cases.

Progress made in collection and remittance of TDS may be intimated to

Audit at the earliest.

Reference Number: OBS-1231170

Subject: Irregular drawal of Family Planning Incentive increment –

Rs.0.17 lakh

The Govt. of A.P., Finance & Planning Department vide Memo

No.34784/481/A-2/PC-I/2001 dt.7-11-2001, in view of prospective
discontinuance of the scheme of Family Planning (FP) incentive increments
as recommended by the PRC, 1999 that came into w.e.f. 1-7-1998, have
instructed all the Departments and Director of Treasuries & Accounts to
await further orders in this regard from the Government. Further, vide its
subsequent Memo No.1943/A-1/PC-I/2006 dt. 3-3-2006 the Finance
Department has issued orders that Family Planning incentive increments
sanctioned on or after 1-7-1998 shall be disallowed and hence amounts
sanctioned after 1-7-98 shall be recovered from the employees concerned.

However, in contravention to the above Government Memo, on

scrutiny of pay bills for the month of January 2024 and Service Register of
Sri C. Sankaraiah, Junior Assistant, audit noticed that family planning
incentive increment @ Rs.60/- per month was sanctioned to the individual
after 01.07.1998 i.e., on 01.02.2001 and are being drawn till to date. The
irregular drawal of family planning incentive increment for the period from
February 2001 to January 2024 (276 Months) was worked out to
Rs.16,560/-, which needs to be recovered from the concerned official.
Further, necessary recovery entries may also be recorded in the service
register.

On this being pointed out, it was replied that the matter would be
examined and a detailed reply would be furnished in due course.

Progress made in the recovery of family planning incentive from employee

along with remittance particulars may be intimated to Audit at the earliest.

Reference Number: OBS-1231214

Subject: Loss of revenue due to under valuation of the property:-

Rs.1.22 lakh

Document No. 7019/2022

Date of 21-07-2022
Presentation

Schedule Flat No.‘A’ part of Y.S.R & The Balaji Layout, 38 th Block,
Residential area, Rayachoti Municipality – Sy. No.892/2-
measuring 452 Sq. Yrds.

As per Article 47A of Schedule I-A to the Indian Stamp Act 1899, Stamp
Duty at the rate of five per cent and Registration Fee at the rate of one
per cent are chargeable on Sale Deeds apart from Transfer Duty at the
rate of 1.5 per cent.

On scrutiny of the document, it was observed that the Scheduled property

was part of the layout adjoining the Outer Ring Road and is valued at
Rs.9,300/- per Sq. Yrd (Residential value as per MVG Form-I). Whereas Flat
No.s ‘C’,’D’ & ’E’ parts of the same layout which share same
boundary(Outer Ring Road) as Flat No.‘A’ part does, are valued at
Rs.12,900/- per Sq.Yrd (Commercial value as per MVG Form-I) in Doc. No.s
7633/2022, 6994/2022 & 6658/2022 respectively. Since, Flat No.s
‘A’,‘C’,’D’ & ‘E’ share common boundary, they should be valued uniformly
at the highest rate applicable i.e., Rs.12,900/- per Sq.Yrd (Commercial
value as per MVG Form-I). Therefore, this resulted in loss of revenue of
Rs.1,22,180/- due to under valuation of the property as follows.

Total value considered (452 Sq. Yrds * 9,300/Sq. Yrd) (A) 42,04,000/
-

Total value to be considered (452 Sq. Yrds * 12,900/Sq. Yrd) 58,30,800/

(B) -

Stamp Duty collected (@5% of 42,04,000) (C) 2,10,030/-

Stamp Duty to be collected (@5% of 56,95,200) (D) 2,91,540/-

Transfer Duty collected (@1.5% of 42,04,000) (E) 63,060/-

Transfer Duty to be collected (@1.5% of 56,95,200) (F) 87,462/-

Registration fee collected (@1% of 42,04,000) (G) 42,040/-

Registration fee to be collected (@1% of 56,95,200) (H) 58,308/-

Difference amount to be collected (((D+F+H) - C+E+G)) 1,22,180/-

On this being pointed out, the office replied that the matter would be
examined and a detailed reply would be furnished in due course.

Progress made in the levy and collection of deficit duties alongwith

remittance particulars may be intimated to Audit at the earliest.
Reference Number: OBS-1231206

Subject: Loss of revenue due to under valuation of the property -

Rs.0.63 lakh

Document No. 6131/2022

Date of 07-07-2022
Presentation

Schedule Flat No.‘B’ part of Y.S.R & The Balaji Layout, 38 th Block,
Residential area, Rayachoti Municipality – Sy. No.892/2-
measuring 233.33 Sq. Yrds.

As per Article 47A of Schedule I-A to the Indian Stamp Act 1899, Stamp
Duty at the rate of five per cent and Registration Fee at the rate of one
per cent are chargeable on Sale deeds apart from Transfer Duty at the
rate of 1.5 per cent.

During the scrutiny of the above mentioned document, audit observed that
the scheduled property was part of the layout adjoining the Outer Ring
Road and was valued at Rs.9,300/- per Sq. Yrd (Residential value as per
MVG Form-I). Whereas, Flat No.s ‘C’,’D’ & ’E’ parts of the same layout,
which share same boundary (Outer Ring Road) as Flat No.‘B’ part does, are
valued at Rs.12,900/- per Sq.Yrd (Commercial value as per MVG Form-I) in
Doc. No.s 7633/2022, 6994/2022 & 6658/2022 respectively. Since, Flat
No.s ‘B’,‘C’,’D’ & ‘E’ share common boundary, they should be valued
uniformly at the highest rate applicable i.e., Rs.12,900/- per Sq.Yrd
(Commercial value as per MVG Form-I). Therefore, this was resulted in loss
of revenue to the extent of Rs.62,998/- due to under valuation of the
property as follows.
 Total value considered (233.33 Sq. Yrds * 9,300/- Sq. Yrd) 21,70,000/
(A) -

Total value to be considered (233.33 Sq. Yrds * 12,900/- Sq. 30,09,957/

Yrd) (B) -

Stamp Duty collected (@ 5% on 21,70,000/-) (C) 1,08,500/-

Stamp Duty to be collected (@ 5% on 30,09,957/-) (D) 1,50,498/-

Transfer Duty collected (@ 1.5% of 21,70,000/-) (E) 32,550/-

Transfer Duty to be collected (@ 1.5% of 30,09,957/-) (F) 45,150/-

Registration Fee collected (@1% of 21,70,000/-) (G) 21,700/-

Registration Fee to be collected (@1% of 30,09,957) (H) 30,100/-

Difference amount to be collected (((D+F+H) – (C+E+G)) 62,998/-

On this being pointed out, the department replied that the matter would be
examined and a detailed reply would be furnished in due course.

Progress made in the levy and collection of deficit duties alongwith

remittance particulars may be intimated to Audit at the earliest.