e-gov initiatives in commercial taxes, west bengal government of west bengal

e-GOV INITIATIVES IN COMMERCIAL TAXES, WEST BENGAL

GOVERNMENT OF WEST BENGAL

REFORMS UNDERTAKEN

Tax Administration Reforms Tax Policy Reforms

Direct Reforms (Restructuring, Reorganisation)

Indirect Reforms (Through ICT & Process

Reengineering)

REFORMS IN VAT LAWS

Direct Administration Reforms: Reorganisation in the Directorate of Commercial Taxes

To further rationalize, each such Unit was subdivided in Zones. The existing domain of Charge/Circle was kept in mind while demarcating the respective are of operation for such Zone

Re-organization of the Enforcement Wing

The enforcement wing, the Bureau of Investigation has been trifurcated into three wing spatially covering the

entire State.

A comparative collection figure of direct tax recovered by the reorganised Bureau of Investigation

on y-o-y basis goes to reflect reasonable progress

Erstwhile B.O.I. (2012-13)

Rs. 96.61 Crores

Unit-I, II, III (2013-14) Rs. 244.19 Crore

Tax Administration Reforms: Reorganization in the Bureau of Investigation

Tax Administration Reforms: Formation of the Data Analysis Wing (DAW)

Data Analysis Wing has so far generated more than 400 (Four Hundred) reports.

The main function of this Wing is the analysis of the database to tap the probable evasion of tax. This is

done by utilizing the huge database of digitised information

DAW HAS GENERATED REPORTS ON :

IMPORT OF GOODS FROM OUTSIDE TO WEST BENGAL

MOVEMENT OF GOODS USING WEST BENGAL AS TRANSIT

IDENTIFICATION OF FAKE CLAIMS FOR INPUT TAX CREDIT BY DEALERS

DEALER WISE ANALYSIS OF TREND OF PAYMENT OF TAX IN SUCCESSIVE FINANCIAL YEARS

COMMODITY-WISE COLLECTION, TREND, ANALYSIS AND PROJECTION FOR THE GOVT FROM TIME TO TIME

SHARED DATA WITH OTHER STATES AS WELL AS CENTRAL GOVT TAX AGENCIES

SALE-PURCHASE MISMATCH

CENTRALIZED NOTICES TO DEALERS

PROVISIONAL ASSESSMENT

UNAUTHORIZED ITC FROM DEALERS

DAW WEBPAGE

REPORT ON

MISMATCH 2010-11

CUSTOMIZED REPORTS

DAW HELPS IN ASSESSMENT

ENTRY TAX ASSMT

SENT CENTRALIZED NOTICES TO DEALERS

DATES AND TIME EARLIER GIVEN BY CHARGES, NOW BEING DONE CENTRALLY

PROVISIONAL ASSMT

SENT CENTRALIZED PROV ASSMT NOTICES TO

DEFAULTERS

DEMAND CALCULATED ON THE BASIS OF FORMULA AS

DIRECTED

NOTICES SENT CENTRALLY THROUGH DAW

63.69 Cr FROM Provisional Assessment, March 2013

13.76 Cr FROM Provisional Assessment, June 2013

9.04 Cr FROM Cancellation Notices to Defaulters

47.53 Cr from restriction imposed on Excess Paid c/f

34.45 Cr from Sale-Purchase Mismatch

ACHIEVEMENTS OF DAW in 2013-2014

Administrative Reforms through Greater Use of Information and Communication Technology in Directorate of Commercial Taxes

Online registration of dealers under WBVAT, CST and WBST Act

• Compulsory e-registration• Complete e-processing including

– electronic submission of query, if needed, – submission of online response by dealers and its receipt

by the system,– facility for tracking the status of the application over web

and– Generation of Registration Certificate.

• No pre-registration hearing of the prospective dealer• Significant reduction of service delivery time with

the Issue of RC online.

• Tatkhanik (instant) registration– New scheme for companies registered under Companies Act,

and for dealers already registered with Central Excise or Service Tax or any other state VAT.

• Composite VAT Registration (CVN)– Immediate registration for small traders dealing exclusively in

intra-state trade.– Fixed payment of taxes (Rs 12000/Rs 7000 p. a.)– No need to file return or maintain book for VAT compliance.– Will not be assessed or audited.– No visit by Tax Officers.




Link to E-Registration

Indirect Administrative Reforms through Greater Use of Information and Communication Technology in Directorate of Commercial Taxes

Online filing of

VAT, CST and WBST returns

• Mandatory e-filing of returns by all dealers• Automatic arithmetical scrutiny of the returns filed• Setting up of authorised facilitation centres to assist dealers,

if needed• Dealers can also take the help of Vat Return Preparers (VRPs)

trained by the directorate

Online filing of VAT, CST and WBST returns

Link to E-return

• Dealer can file electronic return using Digital Signature • Thus, no need to submit paper returns• To popularize the use of Digital Signature Certificate ( DSC ) an

incentive scheme introduced to encourage and help small dealers in procuring DSC free of cost


Introduction of Digital Signature Certificate (DSC)

Introduction of Digital Signature Certificate (DSC)

Link to Digital Signature Certificate

• Compulsory e-Payment for dealers having tax liability more than Rs 2 lakh per annum

• E-Payments are received in the state through the 'Government Receipt Portal system'('GRIPS‘).

• One common portal for all Government Receipts.• Smaller dealers can also use GRIPS challan to make Over The Counter

(OTC) payments.• No need to file hard copy of challans in case of e-Payments.• 80% of tax payment is through e-Payment• All nationalised banks and selected (major) private banks authorised to

collect taxes


Online payment and digitization of over the counter payment through GRIPS

Online payment and digitization of over the counter payment through GRIPS

Link to e-Payment through GRIPS

• No manual issue of ‘C’ forms and ‘F’ forms.• Online issue, filing and processing of ‘C’ forms and ‘F’ forms. • Dealers may generate 'C' and 'F' forms electronically based on

the return data. • Generation of CST forms is immediate. • All CST forms issuance and utilisation data is fully updated and

available on TINXSYS simultaneously.• System of physical production of ‘C’ and ‘F’ forms done away

with.• Mere filing of the statement online on our portal and matching

with TINXSYS suffices.


Online application, generation and printing of dematerialised CST related Forms

Online application, generation and printing of dematerialised CST related Forms

Link to generate CST Related Forms

• Installation of Server helps to develop a fast and state of the art internal application named IMPACT for efficient workflow within the Directorate

• IMPACT module helps the officers of the Directorate to dispose all e-applications and request generated from outside.

• It is secured portal for internal usage for the officers of the Directorate

• It enables to achieve the objectives of reducing human-interface in transactions with customers


Installation of State of the art Server for Internal Application (IMPACT)

New IMPACT

MIS AVAILABLE IN IMPACT

MIS AVAILABLE IN IMPACT (contd)

• To speed up refund the Directorate had earlier introduced e filing of application and refund through ECS mode.

• During 2012-13, the Directorate introduced online verification of ITC

• Documentation has been reduced to the bare minimum• Online filing of refund application, its processing• Facility for tracking the status and transfer of refund

amount to the bank account of the assessed electronically


VAT Refund and Payment through ECS

VAT Refund and Payment through ECS

Link to E-Refund

• Government of West Bengal refunds a certain portion of tax paid by certain class of manufacturers as assistance to industrial promotion

• In online e-IPAS, dealer is able to apply for such assistance online and also gets the assistance online through ECS in his bank account.


E-Industrial Promotion Assistance Scheme (e-IPAS)

E-Industrial Promotion Assistance Scheme (e-IPAS)

Link to e-IPAS

• Confidential access to Dealer’s Profile• Dealer can access information of his/her profile related to :-

– Tax payment– Returns– Waybill– Central Declaration Forms– Assessment– Audit– Sale Purchase mismatch– Publishing of all notification and dealer related information

• Any time updating of contact information and generation of password.


Online Dealer’s Profile

Online Dealer’s Profile

Dealer’s Profile

View of Dealer’s Profile

View of Dealer’s Profile (contd)

View of Dealer’s Profile (conts)

Road Ahead For Greater Use of Information and Communication Technology in Directorate of Commercial Taxes

Online Appeal, Revision & Review – E-service for online appeal, revision and review and generation of

modified demand. – A copy of the notices will be sent to dealer’s profile along with print

copies. – Notifications will be sent by SMS and email to dealer during the

processing of appeal cases. – This will help the taxpayers avail the judicial forum more easily and

also help the administration to follow up such cases.

Road Ahead For Greater Use of Information and Communication Technology in Directorate of Commercial Taxes

Document Management System– Introducing the Document Management System and its integration

with IMPACT– This service would ensure proper maintenance of all documents

submitted by dealer and generated at the office for easy searching and retrieval by all users

– Internal processes would become virtual (paperless)– Seamless integration of different internal processes viz. Return filing,

Scrutiny, Assessment/Audit, Appeal, Recovery– Integration with electronic issue of notices (emails) and SMS

intimation– Automatic alert to dealers at each stage of internal processing

• ASSESSMENT– Dealer is deemed assessed on the date of submission of

return– Major reform in law to practically do away with assessment– No routine assessment – To be done in specific actionable intelligence

• AUDIT– Instead of routine assessments, Audit of few dealers selected

randomly based on RISK ANALYSIS and Dealer profiling– Audit report gets converted into demand and no further

assessment and hence avoidance of duplication

Tax Policy Reforms by Directorate of Commercial Taxes

AUDIT BY C.A. OR COST ACCOUNTANT

• Audit only when turnover exceeds Rs 5 Crore• Concept of self audit introduced for dealers

with turnover between 1.5 Cr to 5 Crore. This has reduced the cost of compliance and unnecessary harassment

Tax Policy Reforms Directorate of Commercial Taxes

OTHER TAX REFORMS

• Provision of disallowance of input tax credit for non-maintenance of stock register done away with

• Filing of appeal means automatic stay of demand. No separate petition needed. Saves the cost to the dealer and effort of the directorate.

Tax Policy Reforms by Directorate of Commercial Taxes

Report of the Third Party Audit on e-Services of Commercial

Taxes

Audit done by PWC

Report of Third Party Audit on e-Registration

Compliance Summary“A dealer can easily make a requisition for VAT/CST registration through the West Bengal Commercial Tax Web Portal. The portal helps in filling all the details of the application form online. The dealer can track the status of the application using the acknowledgement number generated at the time of submission of the online form. The internal processing has been fully automated. Verification process such as “Online PAN verification with CBDT database” is again with the help of available online data. The query feature not inbuilt but there are various other modes through which the dealers can get their queries addressed such as Email-Id, Helpdesk, Contact Officials etc. The automation process of registration process for WBST is in development phase.”

Report of Third Party Audit on e-Refund

Compliance Summary“The pre-assessment refunding process is requested by the dealer though the WB Commercial Taxes Web Portal. The dealer can fill the refund application online and upload the required supporting documents. The internal processing mostly demands the intervention of the ICT application. There is a dedicated unit which is responsible for the processing of the file. The processing related communication between the assessing authorities and sanctioning authorities is through the system only and hence all the findings and verification details are recorded in the system. The dealer can check the status of his refund application through the system and doesn’t have to visit the office for the same. The refund amount is directly transferred to the dealer’s account as applicable.”

Report of Third Party Audit on e-Return

Compliance Summary“Only the dealers who file return without using DSC have to visit the CT office at the time of physical submission of the signed copy of return. The system is built with several checks which help the dealer in correctly filling the return form.”

Report of Third Party Audit on e-STDS

Compliance Summary– The dealers can very conveniently complete their

STDS application through the online application. – The dealers can also generate demat STDS

certificate for the contractors through the portal.

Report of Third Party Audit on e-Payment

Compliance Summary“The GRIPs system helps the dealer in making the e-payment for different online services provided by the directorate. The pre-condition is that the payer should have the facility of e-banking with at least one of the 15 banks as mentioned above.”

Report of Third Party Audit on e-Forms &

Automated Notice Issuing SystemCompliance Summary

“The dealers can automatically generate From C and F. The dealers can download the acknowledgement for Applications of EI/EII/H Forms but cannot check the status of the application. Currently the system doesn’t allow the dealer to respond through the web portal or generate any query on the same.”

“The feature of automatic delivery of acknowledgment details has been built in the system. However the system has not yet been built with the reminders or alert features.”

Thank You

e-gov initiatives in commercial taxes, west bengal government of west bengal

Documents

daw slide

directed slide

daw webpage slide

bureau of investigation

direct administration

administrative reforms

payment of tax

assessment entry tax