For use of IAAD only
OFFICE OF THE ACCOUNTANT GENERAL (C&RA),
TAMIL NADU, CHENNAI
TAMIL NADU BETTING TAX
AUDIT MANUAL
Issued by
PREFACE
The audit of Betting Tax receipts has been taken up by this office from march 1973. The Manual on Betting Tax has been prepared in accordance with the instructions of the Comptroller and Auditor General taking into account the law and the procedure relating to the levy of tax incorporating therein the detailed checks to be conducted in audit etc.
This manual is intended for guidance of members of the Receipts Audit Headquarters Section and the inspection parties. It contains the basic provisions of the betting Tax relating to levy, assessment and collection and also embodies directions and instructions for an efficient performance of local audit. The audit instructions in this manual are only supplementary to the general rules and orders contained in the manual/circulars issued by the Comptroller and Auditor General of India.
This manual cannot be regarded as a substitute for the Act itself. For a fuller and comprehensive study one should refer to the provisions of the law and to the rules made thereunder.
This manual should not be quoted as authority in any correspondence outside this office.
The Revenue Audit Headquarters Section is responsible for keeping the manual upto date.
Suggestion for improving this manual, including reference to errors and omission, if any, in the Manual would be welcomed.
MADRAS S. MURUGAIAH
CONTENTS
Page No.
PREFACE
SECTION I
CHAPTER 1 Introduction 1
CHAPTER 2 The Legislative Background and the Administration of levy and collection of Betting Tax.
2
CHAPTER 3 Procedure for Betting 3
CHAPTER 4 Basis for and the general scheme of levy of tax 4
CHAPTER 5 Stake Amount or Bet Amount 5
CHAPTER 6 Determination of Tax 6
CHAPTER 7 Collection of Tax and remittance
7
CHAPTER 8 Internal check Procedure 8
SECTION II
CHAPTER 1 Procedure and scope of Audit 9
CHAPTER 2 Local Audit of Assistant Commissioner’s (CT) Officers and results of Audit
SECTION I
CHAPTER I
INTRODUCTION
COMMENCEMENT: With the enactment of the Comptroller and Auditor General’s (Duties, powers and conditions of service) Act, 1971 the audit of revenue receipts of the State Government and the refunds thereof has become a statutory responsibility of the Comptroller and Auditor General of India. Accordingly the audit of receipt under the Tamil Nadu Betting Tax Act, 1935 among other receipts, was taken up in March 1973.
REGULATION:- 1.2 – The audit of Betting Tax receipts is regulated by the general principles governing the audit of receipts as laid down in Chapter IV of Section II of the Comptroller and Auditor General’s Manual of Standing Orders (Technical) as supplemented by the provisions of this manual and instructions issued from time to time by the Comptroller and Auditor General of India.
FUNCTION OF AUDIT:- 1.3 – The most important function of audit is to see that adequate regulations and procedure have been framed by the Commercial Taxes Department to secure an effective check on the assessment, collection and proper accounting of tax and to satisfy itself that such regulations and procedure are actually being carried out. Audit should also make such examination as it thinks fit with regard to the correctness of the sum brought to account in respect of Betting Tax.
RESPONSIBILITY:- 1.4- It is primarily the responsibility of the departmental authorities to see that the revenues due to Government, which have to be brought to account, are correctly and promptly assessed, realized and credited to Government account. During audit of receipts it should be seen that all receipts due to Government are actually received and brought to account and that receipts which have entered the books of a department are correctly calculated and are in fact credited to Government account in time.
PRECAUCTIONS : - 1.5- Audit of revenue differs from audit of expenditure. In the case of the former, among other things, it should be seen that attention is given not only to examining the records of accounts actually received, but also to ascertain that adequate precautions are taken to ensure that all amounts received or due to be recovered in the periods of account are properly and promptly brought to account.
1.6: - In the subsequent chapters the basic provisions of the law and the rules governing the assessment and collection of Betting Tax are set out.
CHAPTER 2
THE LEGISLATIVE BACKGROUND AND THE ADMINISTRATION OF LEVY AND COLLECTION OF BETTING TAX
LEGISLATIVE BACKGROUND OF TNBT ACT, 1935: 2.1- Article 265 of the Constitution provides that no tax shall be levied or collected except by authority of law and hence the levy and collection of the Betting Tax are governed by the provisions of a specific Act passed by the State Legislature, viz The Tamil Nadu Betting Tax Act, 1935 as amended from time to time.
Administration of Act: 2.2- The Madras Betting Tax Act was enacted in 1935. Under this Act, tax is leviable on Bettings at meetings for horse races. It came into force on 15th November 1935 in the District of Chengleput, Madras and on 29th April 1939 in Ootacamund in the Nilgiris district. At the initial stage, the Act was administered by the Collectors of the Revenue Districts. The administration of the Act in Chingleput District Madras was transferred to the Assistant Commissioner (CT), Zone VII, Chennai in July 1939, when the department was formed and that, in the Nilgiris District on 30th January 1951 to the Assistant Commissioner(CT), Ooty.
Application of the Act: 2.3- The application of the Act is restricted to bettings at meetings of horse races held seasonally at Guindy ( Madras )(Including inter-venue betting at Guindy on race meetings held in Ooty, Bangalore and Hyderabad) and the bettings at meetings of horce races held seasonally at Ootacamund ( The Nilgiris). The normal period during which various race meetings are held are detailed in Annexure I. So far as the races at Guindy are concerned, the Act was administered by the Asst. Commissioner (CT), Zone VII. So far as races at Ootacamund are concerned, the Act is being administered by the Asst. Commissioner (CT) , Ootacamund.
STATE MANUAL: 2.4- The Commercial Taxes Manual Volume II of the Tamil Nadu Government contains standing orders 143 to 151 relating to the administration of the Tamil Nadu Betting Tax Act 1935 and the rules thereunder.
CHAPTER 3 PROCEDURE FOR BETTING
Race Events: 3.1- Betting is permitted only at the totalizators maintained by the authorities of the Madras Race Club at the various windows or with registered book makers ( i.e persons who carry on the business of making bets with the public in general) licensed to receive bets within the race enclosures. The horse that wins a race is called the “win” and first two or three horses ( including the “win” ) on which “place” dividends are declared are called “placed” horses. So far as Double and Treble events, Jackpot, Forecast pool and Tanala ( first three horses in a race to be marked ) events are concerned, betting is permitted at the totalizators only.
BETTING AT TOTALIZATOR : 3.2- The totalizator is a machine enabling the backers ( i.e members of the public who back a particular horse for “win” or “place”) to make bets with one another on the principle of common pool. It is electrically operated at Guindy for “win” and “place” bets. When the tickets are issued, the total of bets on each horse is electrically recorded on the Veeder. The amount paid on all the horses, less the commission due to the Race Club and the tax due to the Government is payable to the Winning backers as dividend. The totalizator at Ootacamund is not operated electrically.
BETTING WITH BOOK MAKERS :- 3.3- The Betting with the bookmakers is personal one between the backers and the bookmakers. The book-makers undertake to pay the backer a definite number of times of investment made, in event of the horse of the backer’s choice winning or getting a place in the specified race. For example, if the offer of a book-maker is ten to one and if the backer makes a bet of Rs. 100/- and wins, the book-book-maker has to pay back Rs. 100/- and in addition Rs. 1000/-. Provision for credit betting on presentation of IOU vouchers by the backers are also available. In the case of credit bet the book-maker pays Rs. 1000/- only. With effect from the racing season commencing from October 1958, the tax in the case of betting with book-makers is payable on the moneys received by the book-makers in consequence of the bets made. The tax is payable by the book-maker.
ACCRUAL OF TAX : 3.4- The tax under the totalizator system accrues to the State the moment the bet is made. The Custodian/Director of the race course is deemed to have received it on behalf of the State.
CHAPTER 4
BASIS FOR AND THE GENERAL SCHEME OF LEVY OF TAX
BASIS FOR LEVY: 4.1 – The basis and the procedure for the levy of Betting Tax are regulated by (a) The provisions of the Tamil Nadu Betting Tax Act, 1935, as amended from time to time: and (b) The Tamil Nadu Betting Tax Rules, 1935 as amended from time to time.
RACE MEETINGS: 4.2- The Tamil Nadu Betting Tax Act, 1935, was made applicable in respect of bettings at meetings of horse races held seasonally at Guindy and at Ootacamund. They are conducted under the rules of the Racing of the Royal Calcutta Turf Club ( R.C.T.C). The Government permitted inter-venue betting at Guindy on race meetings held at Ootacamund with effect from May 1974 and the provisions of the Act and Rules ibid were made applicable in respect of such inter-venue bettings. The Government also permitted inter venue betting at Guindy on race meetings held at Hyderabad and Bangalore with effect from August 1974 and June 1976 respectively and the provisions of the above Act and Rules were also made applicable in respect of such inter-venue bettings.
CHAPTER 5
STAKE AMOUNT OR BET AMOUNT
BASIS FOR ASSESSMENT : 5.1- The assessment of Betting Tax under the Tamil Nadu Betting Tax Act, 1935 is based on the stake amount or the bet amount, in respect of totalizator tax and on all moneys paid or agreed to be paid to book-makers by backers in consequence of bets in respect of Betting Tax.
BETTING AT THE TOTALIZATOR:- 5.2- In respect of bettings at the totalizator maintained by the authorities of the Race Course at Guindy at the various windows, the Race Course at Guindy maintains the accounts of stake amount or bet amount.
Betting with Book-makers: 5.3- In respect of bettings with registered book-makers licensed to receive bets within the race enclosures, each book-maker maintains accounts of all bets made with him.
CHAPTER 6
DETERMINATION OF TAX
LEVY OF TOTALIZATOR TAX SECTION 4 OF TNBT ACT 1935: 6.1-Totalizator Tax is levied under section 4 of the Madras Betting Tax Act, 1935. The tax is levied on backers in respect of all moneys paid by them into the totalizator by way of stakes or bets. The Custodian, Race Course at Guindy maintains the accounts. He should submit to the Assistant Commissioner (CT) within fourteen days of each racing day a return in Form M ( M.1/M.2 in respect of Ooty) for each totalizator showing the amount paid in by backers on account of “win” and “place” bets and other events, the total amount received as bets, and the amount of tax due on such payment. Such return shall, before it is so forwarded, be audited by an auditor holding a certificate entitling him to act as an auditor of companies under the Indian Companies Act. Within fourteen days of the close of the month in which races have taken place, the Custodian, Race Course at Guindy should pay the amount of the totalizator tax by a cheque drawn in favour of the Asst.Commissioner (CT) . In the case of Ooty races, the amount has to be paid within one month of the date of the last race meeting for the first or second season in each year.
LEVY OF BETTING TAX SECTION 5 OF TNBT ACT 1935: 6.2- Betting Tax from makers is levied under Section 5 of the Madras Betting Tax Act 1935. Each book-maker is required to keep the accounts of all the bets made with him, whether in cash or on credit in Form ‘N’ ( Forms N 1 and N 2 in respect of Ooty for the first and second season). The form ‘N’ ( Forms N 1 and N 2 in respect of Ooty ) in which entries are made by the book makers at the time of receipt of bets from the backers, is affixed by the Assistant Commissioner (CT) with his office seal. For each race, entries are made in form ‘N’( Forms N 1 and N 2 in respect of Ooty ) in duplicate. At the end of each race, one copy is taken away by the Assistant Commissioner (CT) or any other officer on duty in the race
course. One copy is retained by the book-maker. The forms ( N and N-1/N-2) shall be serially numbered and shall run on consecutively and they shall be maintained in duplicate. Each original and duplicate shall bear the seal of the Assistant Commissioner(CT) concerned. The statement in forms ‘O’ and ‘O1’/ ‘O2’ (Ooty) showing the gross takings under ‘win’ and ‘place’ in respect of each race on each day is prepared by the book-makers and submitted to the Assistant Commissioner (CT) . The book-maker is required to pay the betting tax within seven days from the date of the race meeting along with the return in forms ‘O and ‘O1’/ ‘O2’ (Ooty).
RATES OF TAX: 6.3 – The rates of totalizator and betting taxes levied from time to time are detailed in Annexure II.
DIFFERENCE BETWEEN THE TWO TAXES: 6.4 – The difference between these two taxes lies in the system of betting and distribution of returns to the winners. In the case of totalizator tax, the entire amount of bets collected at the totalizator in each race is totaled up and distributed among winning persons after making provision for taxes and sundry expenses. In the case of betting tax bets are laid with licensed book-makers who make the payments to the winning persons at the agreed rate of bet.
Surcharge : 6.5 – In addition, surcharge of five per cent of betting tax and totalizator tax is also recoverable from 01.01.972.
CHAPTER 7
COLLECTION OF TAX AND REMITTANCE
Accounts and Returns from Race Courses at Guindy and Ooty - Section 6 of TNBT Act 1935:-7.1- The Custodian of the Race Course at Guindy and the Director of the Race Course at Ooty shall within fourteen days of the close of each month in which a race meeting or race meetings has/have taken place in the case of race meetings held at Guindy, and within one month of the date of the last race meeting held at Ootacamund in the first and second season of each year, pay the amount of the totalizator tax due by him in respect of the race meting or race meetings as the case may be by a cheque drawn in favour of the Assistant Commissioner (CT) having jurisdiction over in the area.
Accounts and Returns from Book Makers:- 7.2- Each book maker shall submit a copy of the return in form ‘O’ and ‘O-1’/ ‘O-2’ to the Assistant Commissioner (CT) concerned within seven days of close of any race meeting along with a cheque for the tax due on the total amount received and receivable in favour of the Assistant Commissioner(CT) having jurisdiction over the area. Betting Tax due from the book makers is being collected by Assistant Commissioners (CT) directly from 1-4-71.
Remittance of Tax : 7.3- The cheques received from the Custodian of Race course at Guindy and bookmakers are entered on receipt in the Assistant Commissioner’s (CT) office in a “Register of Cheques received”. When the cheques are sent to the State Bank of India they are noted in a “Register of Cheques taken to State Bank of India”. The chalans duly
receipted by the State Bank of India are noted in chalan posting register and also in the register of “cheques received” against the corresponding entries. In respect of Ootacamund, the remittances are made in the State Bank of India, Ooty. The demands with reference to Form ‘M’ and ‘U’ received from the Custodian/Director of Race Courses and the book makers are noted in a demand, collection and balance register. If the book makers tender the betting tax in cash, it is entered in the cash book and a receipt over the signature of the Assistant Commissioner (CT) is issued and remitted to Government account by chalan.
Tax Not Paid Rule 10 of TNBT Rules 1935: 7.4- If the totalizator tax or betting tax is not paid within the prescribed time, it is recoverable as if it were an arrear of land revenue.
ROUNDING OFF OF TAX: 7.5- The amount of tax payable shall be rounded off to the nearest rupee and, for this purpose where such amount contains a part of a rupee consisting of paise, then, if such part is fifty paise or more, it shall be increased to one rupee, and, if such part is less than fifty paise it shall be ignored.
CHAPTER 8
INTERNAL CHECK PROCEDURE Internal check:
8.1- The totalizator for “win” and “place” is electrically operated. The totalizator for Double and Treble events, Jackpot, Forecast pool and Tanala events are not electrically operated. The total number of tickets sold for each race as seen from the supervisor’s memo, as consolidated from the seller’s memo has to be checked by the Departmental official deputed for field duty (Assistant Commissioners (CT)) with the total number of tickets sold on each horse as recorded by the machine in the totalizator. Further, the returns in respect of totalizator tax are audited by Chartered Accountants before submission to the Assistant Commissioner (CT).
INSEPCTION OF RACE MEETINGS:
8.2- Government have appointed the Commissioner of Commercial Taxes, Chennai to inspect or to cause inspection by his subordinates ( not below the rank of an Assistant Commercial Tax Officer) of the race meetings and the connected accounts of bettings at such meetings. Such inspection is done by the officers of the department deputed to the race meetings. The field officer is expected to ensure the correctness of the entries in Form ‘N’ or ‘N-1’/ ‘N-2’, as the case may be and obtain the original copy of the account in Form ‘N’ or ‘N-1’/ ‘N-2’ immediately after the close of the betting for each race and forward it to the Asst. Commissioner (CT). In the Asst. Commissioner’s (CT) office, the entries in statement ‘O’ or ‘O-1’ / ‘O-2’ (which show the gross collection of betting amounts for each racing day by the book makers) as the case may be are checked with those in statement ‘N’ or ‘N-1’ / ‘N-2’ already collected by the field officer on each racing day and the correctness of the calculation is checked.
RECONCILIATION:-
8.3- Departmental reconciliation of receipts figures with those of the treasury is also being done.
SECTION II
CHAPTER 1 Procedure and Scope of Audit
Procedure: Guidelines for Audit – The general principles governing the audit of ‘receipts’ as laid down in Chapter IV of Section II of the Comptroller and Auditor General’s Manual of Standing Orders ( Technical ) Volume I and the Introductory Chapter of Section I of Part I ( Income Tax) of the Revenue Audit Manual issued by the Comptroller and Auditor General of India have to be followed as basic guidelines for the audit of the accounts of “State Receipts”. In this connection a reference is particularly invited to the guidelines and instructions given by the Comptroller and Auditor General of India in his letter No. 1320-Rev.A/8-73 dated 5-3-73 (Circular No. 3 of 1973) especially in Annexure VI thereof.
RECORDS AND REGISTERS: 1.2 – The Commercial Taxes Manual Vol II contains standing orders 143 to 151 relating to administration of the Tamil Nadu Betting Tax Act, 1935 and the rules thereunder. However, there is no form prescribed for watching the receipt of the returns referred to above and the payment of tax by the Custodian/Director of Race Course and Bookmakers. The Commissioner of Commercial Taxes has prescribed the following records for maintenance by the Asst. Commissioners concerned, with effect from 1st April 1976:-
1. Register to watch the receipt of returns in Forms ‘M’ and ‘M-1’/ ‘M-2’ from the custodian/director of race course at Guindy and Ootacamund.
2. Register for watching the receipt of returns from the bookmakers in form ‘O’ , ‘O-1’ and ‘O-2’.
3. Register of cheques received. 4. Chalan postings register 5. Totalling Register
6. Register to watch collection of arrears
7. Register of book makers approved by the Government with reference to Government Memo. 55831/Public V of 1973 Home dated 11-10-73 ( B.P Rt .No. 3257/73 dated 22-10-73).
8. Register of inspection Race Course book makers
9. A Consolidated quarterly demand, collection and balance statement showing separately Demand, Collection and Balance due from the (i) the Custodian/Director, Race Course at Guindy and Ooty ( ii) the book-makers, should also be sent on or before 25th of the month following each quarter by the Asst.Commissioner (CT)
concerned to the Deputy Commissioner and Commissioner of Commercial Taxes based on the registers and statement referred to above.
SCOPE OF AUDIT: 1.3 – The scope of audit is to check the returns submitted by the Custodian, Race Course at Guindy and Director, Race Course, Ooty to the Asst. Commissioner (CT) in Forms ‘M’ and ‘M-1’ / ‘M-2’ ( in respect of the totalizator tax payable by Custodian, Race Course at Guindy and Director, Race Course, Ooty ) and Forms ‘O’ and ‘O-1’ / ‘O-2’submitted by the individual bookmakers ( in respect of betting tax payable by the Book makers).
PROCEDURE OF AUDIT:
1.4- The process of audit on the registers and records maintained in the Asst.Commissioner’s (CT) office are as follows:-
i)Forms ‘M’ and ‘M-1’ / ‘M-2’ - Audit has to verify whether the returns have been received from Custodian, Race Course at Guindy and Director, Race Course at Ooty on the due dates in respect of all racing days of the year ( vide Register in Form 1). The arithmetical accuracy has to be checked in each return of the four weeks marked for check of assessment returns. The levy of totalizator tax and surcharge at the appropriate rates has also to be checked. In the case of any doubt as to evasion of tax, the audited accounts of the Custodian, Race Course at Guindy and Director, Race Course at Ooty may be seen through ITRA parties.
ii) Forms ‘N’ and N-1/ ‘N-2’ – Audit has to verify whether the returns in Forms ‘N’ and ‘N-1/’N-2’ (Entries in Form ‘N; and ‘N-1’ / ‘N-2’ show the individual amount bet by backers on each horse which are totaled progressively) have been collected by the field officers from all book makers in respect of all racing days of the year. The arithmetical accuracy has to be checked in each return of the four weeks marked for check of assessment returns. The entries in Form ‘N’ and ‘N-1’ / ‘N-2’ have to be crosschecked with the entries in Form ‘O’ and O-1/O-2 received from the bookmakers.
iii) Forms ‘O’ and O-1/O-2 :- Audit has to verify whether the returns in Forms ‘O’ and O-1/O-2 have been received from all the bookmakers in respect of all racing days of the year (vide Form 2). The entries in Forms ‘O’ and ‘O-1/O-2’ (which show the total amount collected by the Bookmakers from the backers for each race, on a racing day) have to be cross checked with the entries in Forms ‘N’ and ‘N-1/N-2’ for each racing day of the four weeks marked for check of assessment returns.
The levy of Betting Tax and surcharge at the appropriate rates has also to be checked.
iv) Credit Verification:- When the amount of tax is remitted by cheques the entries in various registers together with the chalans have to be checked. It has to be ensured that there is no delay in remittance and collection of cheque and a close watch is kept on cheques that has been forwarded. The chalans have to be verified independently in the Pay and Accounts Office, Chennai /Treasury Office, Ootacamund in respect of the months of test audit.
v) As regards remittance in cash, the entries in cash book for the month selected have to be verified with the corresponding receipt books, and their remittance in State Bank of India, Chennai Treasury Office. Ooty has to be checked with reference to the chalans. The unused receipt books are also to be scrutinized.
vi) It is also necessary to check that the returns in respect of all the races conducted during the year have been received in Asst.Commissioner’s office(CT), both from the Race Course at Guindy and Ooty and all the book-makers and that tax has been paid in respect of all the races by the Race Course at Guindy and Ooty and all the book makers. Under the provisions of the Act, the collection and remittance of totalizator tax vest in the licensee ie, the Custodian/Director of Race Course. While book-makers are responsible for deposit of betting tax on bets made with licensed book-makers.
vii) The Race Course at Guindy and Ooty intimates the fixtures for each racing season to the Asst.Commissioner (CT). But some races are cancelled due to natural causes like rain or due to other reasons. Extra meetings over and above normal racing days are also held. The Race Courses at Guindy and Ooty are expected to send intimation of such cancellation or holding of extra meetings to the Asst.Commissioner (CT). The fixtures for each racing season are also got approved by the Government of Tamil Nadu ( Home Department ). The list has to be obtained from the Asst.Commissioner’s office (CT ) for conducting the checks detailed above.
viii) The list of book-makers who desire to operate in the race course should be approved by Government. The list of book-makers who operate during each racing season is also being received in the Asst.Commissioner’s office (CT) from the Race Courses at Guindy and Ooty. These lists have to be obtained and it is to be ensured that levy of tax in respect of all book-makers for all the races has been made.
ix) It is also necessary to check in respect of extra meetings held in aid of institutions, funds etc with the approval of the Government that the tax actually collected is credited to the Consolidated Fund of the State initially, and the grants in aid, in favour of the institutions or funds are made available with the approval of the Legislature.
x) It is also necessary to check that in respect of commission collected from 1974-75 onwards by the Race Course at Guindy and Ooty from Punters through Book-makers, necessary levy towards betting tax and surcharge has been made.
xi) It should be our endeavour to ensure that all demands due are correctly and promptly raised in accordance with the law, rules and regulations governing the same and to trace all receipts right from the source to the final accounting in Government books.
xii) A questionnaire for the guidance of local audit parties is enclosed ( Annexure III).
CHAPTER 2
LOCAL AUDIT OF ASSISTANT COMMISSIONER’S (CT) OFFICES AND RESULTS OF AUDIT
Audit: 2.1- The audit of accounts of receipts under ‘Betting Tax’ is conducted on an annual basis, at the offices of the Asst.Commissioner (CT), City Zone VII, Chennai and the
Asst.Commissioner (CT), Ootacamund. Audit of all assessments in respect of all races held during the previous financial year should be conducted during every year, in accordance with the quantum prescribed by the Comptroller and Auditor General of India.
Issue of Report: 2.2 – The local audit reports should be issued within a month of the date of completion of audit. The report should be sent to the head of the office viz the Asst.Commissioner (CT) with a copy to the Deputy Commissioner concerned.
ANNEXURE I
Ref to Race Normal periods of Meetings Madras Regular November to March
Race Season ( Extra races in the first week of April ) Madras Gymkhana Race Season April to August
Ooty Race Season April to June Hyderabad Race Season August to October
Bangalore Race Season June to September ( Summer Meetings ) ANNEXURE II
1) TAX
Rate of totalizator tax and betting tax as per latest Govt Notification ( Notification issued in G.O. P. 28/CT & RE dated 28.1.1994 with effect from 1.4.93).
i) For regular horse race at Guindy.
Totalizator Tax :25% of the amount paid into totalizator by way of bets in a horse race. Betting Tax :25% of the amount collected by bookmakers by way of bets in a horse race.
ii) For intervenue betting in Guindy.
Totalizator Tax: 20% of the amount paid into totalizator by way of bets in a horse race. Betting Tax: 20% of the amount collected by bookmakers by way of bets in a horse race.
i) For regular horse race at Ootacamund.
Totalizator Tax: 20% of the amount paid into totalizator by way of bets in a horse race. Betting Tax: 20% of the amount collected by bookmakers by way of bets in a horse race.
ii) Intervenue horse race
Betting Tax: 20% of the amount collected by bookmakers by way of bets in a horse race.
2) SURCHARGE
Apart from totalizator tax and betting tax, the Tamil Nadu Betting Tax Act 1935 imposes the following:
Surcharge of Totalizator Tax ( S.C on T.T ) : 5% of Totalizator Tax Surcharge on Betting Tax ( S.C on B.T ) : 5% of Betting Tax
ANNEXURE III
Questionnaire for the guidance of local audit parties in the S.R.A Wing, Audit of assessments and levy of ‘Betting Tax’ under the Tamil Nadu Betting Tax Act, 1935.
1. Whether the list of race meetings held during the Race season had been obtained by the department from the Custodian/Director, Race Course at Guindy/Ooty and whether the approval of the Government of Tamilnadu ( Home Department ) had been obtained by the Race Course at Guindy/Ooty for conduct of Race meetings on various dates.
2. Whether the Returns in Form ‘M’ or ‘M1’/ ‘M2’have been received from the Custodian/Director, Race Course at Guindy/Ooty on the due date in respect of all racing days of the year ( vide Register in Form 1 ).
3. Whether the Returns in Form ‘N’ ( ‘N1’ / ‘N2’ for Ooty ) have been collected by the field officers from all the book-makers in respect of all racing days of the year.
4. Whether the returns in Form ‘O’ ( ‘O1’ / ‘O2’ for Ooty ) have been received from all the book-makers in respect of all racing days of the year ( vide Register in Form 2 ).
5. Whether arithmetical accuracy in each return in Forms ‘M’, ‘N’ and ‘O’ has been checked.
6. Whether the levy of totalizator tax, betting tax and surcharge at the appropriate rates has been checked.
7.Whether the entries in Form ‘N’ ( ‘N1’ / ‘N2’ for Ooty ) have been cross checked with the entries in Form ‘O’ ( ‘O1’ / ‘O2’ for Ooty ).
8. Whether cheques/cash have been received towards tax etc in respect of all race meetings from the Custodian/Director, Race Course at Guindy/Ooty and all the book-makers.
9. Whether all the cheques received are entered in the Register of cheques received ( Register in Form 3 ) and whether there is delay in remittance and collection of cheques and
whether a close watch is kept by the department on cheques that have been forwarded for realization.
10. Whether remittance in cash are correctly accounted for in the cash book and their prompt remittance to Government account watched.
11. Whether there is undue delay in realization of cheques or remittance of receipts.
12. Whether printed receipts are being issued for amounts of tax collected and whether or not stock account of unused receipt books is being maintained and verified periodically by the assessing officer.
13. Whether the departmental figures of receipts have been reconciled with the treasury figures.
14. Whether in respect of commission collected by Custodian/Director, Race Course at Guindy/Ooty from punters through bookmakers, necessary levies towards betting tax and surcharge have been made.
15. Whether all demands due are correctly and promptly raised in accordance with the law, rules and regulation governing the same and whether all receipts have been traced right from the source to the final accounting in Government books.
16. Whether remittance verification has been done independently in P.A.O. ( East) Chennai Treasury / Ooty in respect of months of test audit.
17. Whether extra meetings have been held in aid of institutions, funds etc with the approval of Government, and if so, whether the tax actually collected has been credited to the consolidated fund of the State.
18. Whether the Quarterly DCB statements sent to the Board by the Asst.Commissioner (CT) represent the correct position.
19. Whether adequate action is being taken by the department for realization of all arrears.
20. Whether the scrutiny of the Register of Inspection of Race Course and Book-makers maintained by the Asst. Commissioner (CT) reveals any evation of tax.
