Computerization of tax administration under MMP in Arunachal Pradesh. Mr. Tapas Dutta, Assistant Commissioner of Tax & Excise, Itanagar.

Transcription

1 Computerization of tax administration under MMP in Arunachal Pradesh Mr. Tapas Dutta, Assistant Commissioner of Tax & Excise, Itanagar.

2 Table of Content Brief Background Pre Execution Challenges Strategies Adopted Overall Status on Implementation Results & Outcomes 6 A Small Case Study Demonstration 7 Some Bottlenecks in Implementation

3 Brief Background

4 Vision of NeGP Make all Government services accessible to the common man in his locality, through common service delivery outlets, and ensure efficiency, transparency, and reliability of such services at affordable costs to realize the basic needs of the common man.

5 Mission Mode Project Commercial Tax (MMP-CT) NeGP National MMP (13) State MMP (17) Integrated MMP (14) MMP-CT

6 Mission Mode ProjectS Central MMPs (13) 1. Income Tax 2. Passport 3. MA21 4. Insurance 5. National Citizen Database ) 6. Central Excise 7. Pensions 8. Banking 9. e-office 10. Posts 11. Visa & Immigration 12. e-sansad* 13. Common IT Roadmap for Para Military Forces* State MMPs (17) 1. Land Records 2. Road Transport 3. Property Registration 4. Agriculture 5. Treasuries 6. Municipalities 7. Gram Panchayats 8. Commercial Taxes 9. Police 10.Employment Exchanges 11. School Education 12. Health 13. PDS 14. e-vidhaan* 15. Agriculture 2.0* 16. Rural Development* 17. Women and Child Development* Integrated MMPs (14) 1. EDI (E-Commerce) 2. E-Biz 3. Common Services Centres 4. India Portal 5. E-Courts 6. E-Procurement 7. National Service Delivery Gateway 8. Financial Inclusion* 9. National Geographical Information System* 10. Social Benefits* 11. Roads and Highways Information System (RAHI) * 12. e-bhasha* 13. National Mission on Education Through ICT (NMEICT)* 14. Urban Governance*

7 Vision of mmpct To create a modern state tax administration that is Efficient, Effective and Equitable and which is conducive to investment, economic growth and free flow of goods and services within the common market of India

8 Mission Mode Project Commercial Tax (MMP-CT) The overall objective of this project is creation of a national infrastructure for facilitating inter-state trade, ensuring uniformity and standards in Commercial Tax administration and enabling free exchange of information. The Administration hopes to achieve the following though this initiative: To increase the tax collection and improve the tax administration at Commercial Tax Offices under the constraints of human resource To mitigate the hardship to the tax payers when they are dealing with the Tax Offices To assist the department officers in detecting the tax evasion made by the dealers using various modus-operandi.

9 Prime Movers of MMP-CT Department of Tax & Excise PeMT PMC (Wipro Consulting Services) Application Developer (NIC, Karnataka) System Integrator (Trans Virtual Pvt. Ltd)

10 Pre Execution Challenges

11 Challenges Challenges - 1 Geography Most difficult terrain of North East region of India with limited options for transport, poor road infrastructure and seasonal road connectivity to the remote areas. State of SWAN and SDC SWAN is not operational in the State and SDC is also not present in the state. Technology adoption levels Though Taxation department, due to its earlier IT initiative- VCMS, has some level of technology but the adoption level is still termed as medium due to its failure in wider adaptability. Challenges - 2 Internet Connectivity Lack of multiple internet service providers. BSNL is the only service provider with limited penetration in the state that too is inconsistent. Unreliable power scenario Power scenario is very deplorable in Arunachal Pradesh particularly in the District Field Offices as there are remote District offices and also the BFCs Low CSC penetration The third pillar of MMP, i.e. CSC aimed as grass root level of service delivery centers has very low presence in the state.

12 Strategies Adopted

13 Hybrid Procurement Method Procured Hardware & UPS through DGS&D Hardware Network Procurement under scope of System Integrator (SI) SI selected through competitive bidding Installation, Commissioning, Warranty and Maintenance for 5 years System Integrator

14 Change Management District Level workshops & campaigns Phase-wise hands-on training Online Demo modules for practice Legal changes and Administrative support Newsletters, Manuals Set up of Training Lab for continuous Training & Capacity Building Trained Tax Consultants to work as facilitation center Staff Training Dealer Workshop Online Demo Modules News Letters

15 Some News Excerpts on Capacity Building

16 Multiple Connectivity Framework With limitation of SWAN, flexible connectivity framework evolved with the project NIC Connectivity Primary Connectivity Secondary Connectivity Broadband Connectivity Future Connectivity SWAN Connectivity VSAT Connectivity

17 Collocating in NIC Data Center Data Centres NIC Data Centre SDC Stages of Project Application Development Stage Used for application hosting for testing and parallel running Not present Application Roll out Stage Act as hosting Server & DR site Will be utilized as & when comes

18 Overall Status on Implementation

19 e-registration e-purchase & Sales e-return e-cst e-payment e-refund e-check Post e-tds e-audit e-assessment Department Website & Modules

20 Status on Application Development All modules are live in production except e-payment e-payment facility is in the Pipeline Bank of India has been empanelled as Treasury Banker of the state on receipt of accreditation from RBI for receiving online payment of taxes Integrated with NDML s PayGov e-payment Gateway MOU with BoI and NDML has to be signed for offering e- Payment through 70 banks

21 Delivery, Installation & Commissioning Hardware Network Desktop, Laptop & UPS delivered at respective locations Network items delivered at respective locations Hardware & UPS installed at identified locations Network items installed at identified locations.

22 Results & Outcomes

23 Sharp Rise in Registration Total online registered dealers till date 5071 Total backlog of manual registration from Apr, 2005 till July, Total fresh online registration from Aug, 2011 till date 3049 Online registration prevents bogus off-the-record registrations, leading to more accountability on dealer s part and thus augmenting revenue In 6 yrs In 4 yrs 5071

24 Online C-Form issuance from Apr-June 14 onwards Issuance of online C-Form C Form Request

25 REVENUE RECEIPTS - VAT (Rupees in Crores)

26 KPI: Revenue Augmentation Enhanced collection cycle Timely compliance of tax return filing by dealers Increased registration Increased dealer base resulting increased revenue Convenience in transaction Easy mode of payment leads to better tax compliance Plugging loop-holes Re-engineered processes ensuring efficiency, transparency and accountability and augmenting revenue plugging pilferage.

27 KPI: Staff Convenience Reduced work load Reduction of workloads enhances efficiency Disposition of manual processes Paperless work Reduced Dealers visit Reduced Errors No redundant data entry Sanctity and amiable working environment of the office is maintained Employees are also relieved from botheration through constant interruptions Ensured error proof processing of data Non-acceptable data cannot be fed into the systems due to systemic checks in the forms System aided cross checking System ensures no redundant data entries whether it is available in the data base or are entered directly by the end-user Eliminates ambiguities in case of fraudulent data and makes easier enforcement

28 KPI: DEALER Convenience Faster Service Delivery 24X7 open portal Anytime Anywhere service Time bound service delivery Reduced Dealers visit Reduced Officials Dealers interface Reduced Transaction cost including conveyance, etc Transparent System A streamlined, reliable tax returns filing system which also ensures adequate transparency. Transparent web enabled system for issuance of statutory forms (C forms etc.) Status Tracking Online status tracking of registration, transfers, re-registration, collections and refunds

29 A Small Case Study Demonstration How e-cst helps plugging revenue pilferage

30 What is e-cst? e-cst is the module through which registered CST dealers can generate & print CST Forms online. Impact Fully automated & monitored. No intervention of Tax official at all during the entire process. Dealer does not have to visit Tax office to collect C-Form Generation of C-Form is internally linked to Purchase module. Details of C-Form generated online can be verified through TINXSYS portal. Impact Based on the interstate invoices uploaded in the Purchase module, C-Form is generated automatically. No scope for misuse of C-Form. Augment revenue plugging and stop pilferage In the manual system, blank C- Forms were issued which gave huge scope for corruption.

31 Previous Manual Process Dealer Dealer Request for C form Supdt. checks Issue Previous utilization C Of Form C of Dealer Tax Officer Dealer goes to Tax office with inter-state purchase invoices Supdt. verifies previous C-Form utilization from old manual records Tax supdt. issues C-Form to the dealer Process took on an avg 10 days requiring frequent visits of the dealer

32 Loop hole in the previous manual process Revenue Pilferage due to Issuance of Blank C Form Dealer collects blank C-Form in Arunachal Pradesh Blank C Forms Dealer Both Assam and Arunachal Pradesh Governments lose revenue. Sells the C-Form to a dealer in Assam Dealer in Assam uses the C Form to manipulate local sales as inter state sales Thus the dealer pays only 2% CST against established 13.5% VAT.

33 Misuse of C Form - Loss of Revenue - A Hypothetical Scenario An Arunachal dealer buys goods worth 10 Crs. from a Assam dealer This is a Manual C-Form Arunachal dealer gives 2 counterfoils of the C Form to Assam dealer mentioning actual purchase amount of 10 Crs. Arunachal dealer mentions purchase value as only 1 Cr. in his counterfoil of the C Form. Hence he pays entry tax for goods worth 1 Cr. only. Thus Govt. of Arunachal loses revenue in the form of VAT & Entry Tax for the undisclosed goods worth 9 Crs.

34 Online Process Dealer login to the online portal with his credentials Dealers inserts inter-state purchase invoice details in e-purchase module Dealer prints C-Form from e-cst module Complete automatic & paperless process with no intervention from Tax officials Issuance of Blank C-Form and misuse of C-Form have been eliminated completely Login Interstate Purchase to the Invoices portal Purchase Aruntax Module Portal CST C Forms Module Dealer Personal Computer

35 Some Bottlenecks in Implementation

36 Roadblocks Hindering Project Execution Shortage of Power In some places, not even enough to charge UPS Inconsistent Connectivity Lack of BSNL broadband & NICNet in all locations leads to overload of VSAT connectivity. Further, VSAT disconnected presently due to paucity of fund Inertia for Change Lack of technical expertise at field level leading to poor implementation Non-availability of Department s own Infrastructure at districts Hindrance in Site preparation and installation of Hardware & Network equipments as the Department don t have office buildings of its own

37 Punch Line Commercial Tax Administration under Mission Mode Project Fully Transparent Empowerment of Citizens Enforces Integrity Increases Efficiency Paperless Plugging Loopholes Restricting Pilferage Enhance Collection

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