STATE SALES TAX WITH REFERENCE TO KARNATAKA

COMMERCIAL TAXES PRESENTED BY GROUP-3 Ms. NIVEDITA KUMARI RASHMI ABID SUBHANI MD. SABBIR ALAM MD. NASIM SANJAY KUMAR MUKESH Kr. CHAUDHRY SHUSHIL Kr. SUMAN

SALES TAX & VAT SALES TAX :- A TAX IMPOSED BY THE GOVERNMENT

AT THE POINT OF THE SALE ON RETAIL GOODS . IT IS COLLECTED BY THE RETAILER AND PASSED ON TO

THE STATE.

VAT- VALUE ADDED TAX (THE WORD COINED IN THE YEAR 1954 IN FRANCE BY MAURICE LAURE)

VALUE ADDED TAX OR VAT IS AN INDIRECT TAX

WHICH IS IMPOSED ON GOODS AT EACH STAGE OF PRODUCTION STARTING FROM RAW MATERIALS TO

FINAL PRODUCTS. VAT IS LEVIED ON THE VALUE ADDITION AT DIFFERENT STAGES OF PRODUCTION.

Taxes Are What We Pay for

Civilized Society

STATES REVENUE COLLECTION OF COMMERCIAL TAXES DEPARTMENT IN THE YEAR 2013-2014

STATES COLLECTION (In Crore) % INCREASED

MAHARASTRA 69777 12.5 %

TAMIL NADU 51245 22 %

UTTAR PRADESH 47500 13.8%

KARNATKA 36773 15%

BIHAR 13156 20.5 %

“COMMERCIAL TAXES DEPARTMENT” BIHAR AND KARNATAKA

BIHAR

Bihar & U.P Commercial Taxes

1.Value Added Tax

2.Central Sale Tax

3.Entertainment Tax

4.Luxury Tax

5.Entry Tax

6.ProfessionTax

7.Electricity Duty

8.Advertisement Tax

Karnataka commercial Taxes

1.Value Added Tax

2.Entry Tax

3.Agricultural Income Tax

4.Central sales Tax

5.Profession Tax

6.Luxury Tax 7.Entertainment Tax

8.Betting Tax

9.Sales Tax on Petrol, Diesel & Sugarcane

ma

Maharastra Commercial Taxes

1.Value Added Tax

2.Central Sale Tax

3.Entertainment Tax

4.Luxury Tax

5.Entry Tax

6.Professional Tax 7.Entry of Motor vehicle into local area Tax 8.Maharashtra purchase

Tax on Sugar cane.

Tamil Nadu commercial Taxes 1.Value Added Tax

2.Entry Tax

3.Advertisement Tax

4.Central sales Tax

5.ProfessionalTax

6.Luxury Tax 7.Entertainment Tax

8.Betting Tax

9.Sales Tax on Petrol, Diesel & Sugarcane

STRUCTURE AND ORGANISATION OF CTD BIHAR

At the apex of our department is a senior IAS officer as commercial tax commissioner.

Commissioner is assisted by -

Additional Commissioner

Joint Commissioner

Deputy Commissioner

Assistant Commissioner

Commercial Taxes Officer

STRUCTURE AND ORGANISATION OF CTD BIHAR

For the purpose of administrative convenience the state is divided into

Administrative Division(9) and 49 circles

Appeal Division

Audit Division

Tribunal

Intelligence Bureau

Recovery Cell

Legal Cell

Economic Intelligence Unit (EIU)

Tax Research Unit (TRU)

Training Cell

Integrated Check post (5) and proposed (11 ) Intermediaries check

posts.

•Dalkola CheckPost •Karmanasha CheckPost •Dobhi CheckPost •Jalapur CheckPost •Rajoli CheckPost

Name of the Act Name of the Act in Short

Collection ( Rs in crore

Value Added Tax VAT 8546.43

Central Sales Tax

CST

83.41

Entry Tax ET 4282.84

Electricity Duty ED 140.80

Profession Tax PT 52.92

Luxury Tax LT 10.01

Entertainments Tax ET 39.31

Advertisement Tax AT 00.60

Total Collection 13156.38

COLLECTION OF TAXES IN CTD IN BIHAR 2013-2014

STRUCTURE AND ORGANISATION OF CTD KARNATAKA

At the apex of department is headed by a senior IAS officer as commercial taxes commissioner.

Commissioner is assisted by

Additional Commissioner

Joint Commissioner

Deputy Commissioner

Assistant Commissioner

Commercial Taxes Officer

Commercial Taxes Inspectors

Commercial Taxes Department in Karnataka contributes about 62 % approximately to state’s revenue.

In terms of territorial jurisdiction the state is subdivided into

Administrative Divisions ---(13)

VAT Offices ---(118)

Check Posts ---(20)

Enforcement Divisions ---(9)

Appeals Divisions ---(13)

Mobile Squads ----(100)

Collection of Net Tax for the Last Five Years ( in crores)

Year Collections

2009-10 18132.53

2010-2011 22803.43

2011-2012 27610.81

2012-2013 31875.73

20132014 36773.00

e-Comprehensive Audit System

COLLECTION OF TAXES IN CTD KARNATKA

9/12/2014 e-Comprehensive Audit System 16

Name of the Act Name of the Act in Short

Collection ( Rs in crore

Value Added Tax VAT 23546.31

Sales Tax ST 7231.93

Entry Tax KTEG 2645.65

Central Sales Tax CST 1896.65

Profession Tax PT 808.32

Luxury Tax LT 300.46

Entertainments Tax ET 168.69

Betting Tax BT 153.70

Agricultural Income Tax

AIT 21.29

1

• e - Registration

2 • e- Payment

3 • e- Return

4 • .e - SUVIDHA

5 • e - RTPS

6 • e- Filing

e- Registration: - The process of e-Registration and issuance of “C” form is covered under RTPS Act, 2011 of Bihar.

For Registration ----Within 15 working days

For C form ---------within 7 working days

e- SUVIDHA ( Simplified Usage of Vehicle Information Data Harmonized Application)

It is a 16 digits unique number transit permit generated by the system. There are four different types of D (Declaration ) form. Viz

D vii-- Out to Out Transaction

D viii– Intra state Transaction

D xi --- Incoming Transaction.

D x --- Outgoing Transaction.

e- Return & e-Payment

Dealer declares statement of business transaction Quarterly and Annually.

RT –I ----- For quarterly Return

RT – III --- For Annual Return

RT –IV – For Compounding dealers

RT – V – For Revised Return

e- Payment :- It is a 24 x 7 facility to a dealer to make a payment online.

A new Paradigm

Making

Checkpost

Hassle free

Accessibility

Through

Mobile phones

Policing by

Citizens

Transparency

and

Accountability

E - SUGAM

E - SUVEGA

Comprehensive

Assessment

System

E - GRAHAK

E - CST

E - VARADI

E - GRIEVANCE

E - PAYMENT

Services at

doorsteps

M - SUGAM

E-reconcile

Project

Transformation

e- INITIATIVE IN KARNATAKA

20

E-enforcement

system

21

Dealers

• E-VARDAN – Online registration request & processing

• E-VARADI – Online submission of returns

• E-payment – Online payment of Taxes

• E-CST – Online request & issue of the CST forms

• E-Grievance – Online grievance redressal

• E-Clearance – Online request & issue of Clearance Certificate

• M-Services – Mobile Based Alerts

Dealers/ Transporters

• E-SUGAM/M-SUGAM forms – Online request and download of Form for Goods movement

• E-SUVEGA forms – Online request for Transit Pass for movement of goods through State

CItizens

• e-Grahak/m-Grahak – SMS based information/complaint by public on the dealer

Officers

• E-CAS – Comprehensive Audit System

• E-reconcile – Tax Collection Reconciliation system

• E-enforcement System

• E-DCB – Demand Collection Balance System

• E-Dealer File – Consolidated Dealer Information System and Analysis

E-SERVICES FOR MAIN STAKEHOLDERS

•

Has 3 Components- w.e.f 01.04.2011

• e-Audit

• e-DCB (Demand, Collection, Balance)

• e-Enforcement

1

• To Digitally Capture the Audit Process information

2

• To Digitally Capture the Additional Demand Booked and their collection

3

• To Digitally Capture all the Old and Current Arrears from 01.04.2011 onwards

4

• To Increase the efficiency /Transparency /Accountability of Audit Process

5 • To make proper, efficient and effective

use of the limited Human resources

6 • To Reduce the Paper consumption and to

move towards paper less office

e-UPaSS Electronic-uploading of purchase and sales details-Invoice wise

Purpose 1. Online Verification of Input Tax Credit (ITC ) • Manual verification of ITC is humanly impossible; 2. To Reduce Tax disputes of ITC Claims 3. Enable electronic audit 4. IT System enabled faster processing of Refunds 5. Identify bogus claims of ITC through regulation among the dealers; encourages honest tax payers 6. Preparation for GST

E- Guaranteed Response Against Hidden Activities of Tax Evasion in

Karnataka

aa

aa

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NOW! THE STATUS OF VAT !!

Vision as a taxing authority Work in tandem

Generate awareness regarding new changes.

Win over their trust.

Make them proactive.

This vision represents WIN-WIN-WIN situation.

http://www.google.co.in/imgres?imgurl=http://www.pictures88.com/p/thank_you/thank_you_052.jpg&imgrefurl=http://www.pictures88.com/thank-you/thanks-flowers/&h=260&w=365&tbnid=MiMkrdMTcEW02M:&zoom=1&docid=IzhvptD730VCIM&ei=PIviU-iLJ4S_uATL5oC4BA&tbm=isch&ved=0CGEQMygnMCc&iact=rc&uact=3&dur=596&page=3&start=38&ndsp=19

By: GROUP I, BFS

Venue: ATI, MYSORE

1

Shaukat Ali Ansari

Amit Ankit

Abhinav Kumar Jha

Mukesh Kumar

Yaduvansh

Ganga Prasad

Ashish Ranjan

Vivek

2

‘TAXIDERMIST’…..???

The only difference between a Tax-man and a

Taxidermist is ..………… that Taxidermist leaves

the skin!!!!

- MARK TWAIN

3

The Title of the presentation presents the

framework, within which we will be striving to

decipher the two main types of taxes that

encircle our economy, albeit Direct & Indirect

Taxes.

4

Tax : Meaning, Background, Purpose(s), Principles

Direct & Indirect Taxes : Meaning, Examples

Direct Tax : Merits & Limitations

Indirect Tax : Merits & Limitations

The way ahead : DTC, GST, TARC (1st Report)

5

• A tax (from the Latin taxo: "rate") may be

defined as a "pecuniary burden laid upon a

taxpayer (an individual or legal entity) by a state

or the functional equivalent of a state to support

the government, a payment exacted by

legislative authority. A tax "is not a voluntary

payment or donation, but an enforced

contribution, exacted pursuant to legislative

authority".

• Background: - Historical Perspective

- Constitutional Provisions

[Article-265 and 246(Lists)]

6

Objectives and effects of Taxation: ‘4R’

Tax

Revenue

Redistribution

Repricing

Representation

7

Adequacy

Broad basing

Compatibility

Convenience

Earmarking

Efficiency

Equity

Neutrality

Predictability

Restricted Exemption

Simplicity

8

A Direct tax is a kind of charge, which is levied/imposed directly on the taxpayer and paid directly to the government by the persons (juristic or natural) on whom it is imposed. A direct tax is one that cannot be shifted by the taxpayer to someone else.

Some important Direct Taxes are:

Income Tax Corporation Tax

Property Tax Inheritance Tax

Gift Tax Professional Tax

Wealth Tax Securities Transaction Tax

9

An indirect tax is a tax collected by an

intermediary (such as a retail store) from the

person who bears the ultimate economic burden

of the tax (such as the customer). An indirect tax

is one that can be shifted by the taxpayer to

someone else.

10

CERTAIN DIMENSIONS:

- Why Indirect Taxation?

- RST/Pre-Retail /Multistage Sales Tax

- Forward & Backward Shifting of Incidence (eg. Automobile Industry)

11

Whole seller

Retailer

Consumer

Some important Indirect Taxes are:

VAT (Previously Sales Tax)

Central Sales Tax Entry Tax

Entertainment Tax Electricity Duty

Luxury Tax Advertisement Tax

Custom Duty Central Excise Duty

Service Tax

12

13

0

200000

400000

600000

800000

1000000

1200000

1400000

1600000

(In R

s.)

COMBINED REVENUE RECEIPTS OF THE CENTRE & THE STATES

DIRECT TAXES

INDIRECT TAXES

14

DIRECT TAXES

INDIRECT TAXES

67 %

33 %

COMBINED REVENUE RECEIPTS OF THE CENTRE & THE STATES (2013-14)

15

16

17

MERITS:

• Progressive

• important instrument of reducing inequalities of income and wealth

• Revenue elasticity of direct taxes, especially if they are of progressive type is quite high

• Unlike indirect taxes, direct taxes do not cause distortion in the allocation of resources. As a result these leave the consumers better off as compared to indirect taxes.

18

Business Firm

Goods

Profit

19

Income Reserve/Retained

for Reinvestment

LIMITATIONS:

People are aware of their tax liability and therefore propensity of tax evasion and avoidance is more in direct taxes than in case of indirect taxes.

Supposed effect on the will to work and save. It is assessed that work (given Income) and leisure are two alternatives before any taxpayer. If therefore, a tax is imposed say on income, the taxpayer will find that the return from work has decreased as compared with return from leisure. He therefore tries to substitute one for another.

20

MERITS:

Usually hidden in the prices of goods and services being transacted and therefore their presence is not felt so much.

If properly administered, the chances of tax evasion are less

Can change the pattern of demand

Indirect taxes are a powerful tool in moulding the production and investment activities of the economy i.e. they can guide the economy in its resource allocation.

Less negative impact on willing to work

21

LIMITATIONS:

Negate the principle of ability- to-pay and are

therefore unjust to the poor and regressive in effect.

Many are unaware of how much they are paying in

taxes – goes against Principle of Transparency.

Direct taxes take away a part of the purchasing

power of the taxpayer and that has the effect of

reducing demand and prices. On the other hand,

indirect taxes are added to the sale prices of the

taxed goods without touching the purchasing power

in the first place. The result is that in their case

inflationary forces are fed through higher prices,

higher costs and wages and again higher prices.

22

Indirect Taxes

Added to the sale prices of the taxed goods

Purchasing power remain stagnant

Fed inflationary forces

Cost – push Inflation

23

Illustration:

Direct Tax

Code

Goods & Services

Tax

24

First Report of TARC (Tax Administration Reform

Commission) headed by Dr. Parthasarathi Shome

A controversial issue in Public Finance has been

what should be preferred in Tax-Structure…..

Direct or Indirect Tax!!!

25

26

27

PÀ£ÁðlPÀ £ÁUÀjPÀjUÉ ¸ÉêÉUÀ¼À SÁvÀj ¤AiÀĪÀÄUÀ¼ÀÄ-2012

(Karnataka Guarantee of Services to Citizen- Rules, 2012)

DqÀ½vÀ vÀgÀ̈ ÉÃw ¸ÀA¸ÉÜ,

ªÉÄʸÀÆgÀÄ

• DqÀ½vÀ AiÀÄAvÀæ ZÀÄgÀÄPÀÄUÉƽ¸ÀÄ«PÉ • £ÁUÀjPÀgÀ ¸À§°ÃPÀgÀt ºÁUÀÆ d£ÀjUÉ ¸ÀàA¢¸ÀĪÀ DqÀ½vÀ • DqÀ½vÀzÀ°è s̈ÀæµÀÖvÀ£À PÀrªÉÄUÉƽ¸ÀĪÀ eÉÆvÉUÉ ¥ÁgÀzÀ±ÀðPÀvÉ C¼ÀªÀrPÉ • UÀÄgÀÄw¸À¯ÁzÀ ¸ÉêÉUÀ¼À£ÀÄß MzÀV¸À®Ä UÀjµÀ× PÁ®«Äw ¤UÀ¢ • £ÁUÀjPÀgÀ PÀÄAzÀÄPÉÆgÀvÉUÀ¼À£ÀÄß PÀrªÉÄUÉƼÀ¹ CªÀgÀ K½UÉUÉ

¸ÀºÀPÀj¸ÀÄ«PÉ • Erà gÁµÀÖçzÀ°èAiÉÄà Cwà ºÉaÑ£À ¸ÉêÉUÀ¼À£ÀÄß ªÁå¦ÛUÉ M¼À¥Àr¸ÀÄ«PÉ

£ÁUÀjPÀ ¸ÉêÉUÀ¼À SÁwæ ¤AiÀĪÀiÁªÀ½UÀ¼À ¤jÃQëvÀ ¥sÀ®±ÀÈw

K G S C - Rules, 2012 Duties & Responsibilities of Public Office

Comes in to effect from 02.04.2012 through out Karnataka

Display of information on Notice Board.-(Rule-3) (Form-A)

Information of Scheduled Services available

Form of application

Checklist of Documents to be enclosed

Prescribed Fee (If any)

Issue of Acknowledgement

How to Appeal & Documents to be enclosed for Appeal

Manner of receiving Compensatory Cost

Mode of obtaining and Monitoring status of Application

(All the above shall be Displayed in front of the Office)

Competent Officer shall take remedial measures through Designated Officer for Non-Display of above

Mode of Receiving Application and Issue of Acknowledgement (Rule-4)

1) Citizen shall apply to DO for one or more services in the

prescribed format along with documents prescribed {R-4(1)}

2) Designated /Authorized Person on receipt of written

application (Form, if prescribed) give an Acknowledgement to

applicant for each application in Form-B-{R-4(2)}

Allot a (Computerized-GSC No) Number for each Application.

3) If Necessary Documents are not enclosed , it shall be

mentioned in the acknowledgement and date of delivery shall

not be mentioned in such acknowledgements.{R-4(3)}

4) When the Application has all required enclosures & complete

in all respects, then the date of delivery shall be mentioned.

{R-4(4)}

5) Public Holidays are not included while calculating

stipulated time limits for delivery of Services (Rule-5)

Manner of seeking payment of Compensatory Cost. Sec-6

1. Citizen on denial of service is entitled for Compensatory Cost.

Submit Application to CO in Form-B1- {Rule-6(1)}

2. Acknowledgement issued with date & seal- {Rule-6(2)}

3. CO assess the Compensatory Cost as per entitlement &

make payment from out of imprest amount as per Form-B-2

4. Initiate action to recover the C Cost from Defaulting Public

Servant with in 30 days as per section 11-{Rule-6(3)}

5. Show cause Notice to be issued to the Defaulting Officer

(along with the copy of the Application for Compensatory cost

as per Form-B2 )indicate the time limit for offering reasons as

per Form-C (Rule-7)

6. No Fee is levied for Appeal to C Officer/

A- Authorities-(Rule -8)

Procedure of application to Competent Officer or

through Call Centre

The Application in Form-B shall include: (Rule-9)

a) Acknowledgement No;

b) Name and Address; Mobile No:

c) Appeal Against: Name & Address

d) Gist of the order :

e) Date of Application, Name & Address of D Officer

f) Basis for Appeal & Relief sought:

Documents to be enclosed(Rule-10)

a) Table of contents of Documents

b) Self attested copies of the Order

c) Copies of Documents mentioned in the Appeal

d) Proof of Compensatory Cost

Procedure for Appeal-I &II-(Rule-11)

Decision of DO/CO shall be reviewed as below:

1) Review of Documents, Records & Copies

2) Investigation Reports by Special Officer(in Spl cases)

3) Summon the DO/CO, if required.

Process of Communication of Hearing: (Rule-12)

1) Hand Delivery

2) By Regd Post

3) Through Fax, e-Mail, SMS (As requested by the Applicant)

4) Software under KGSC

Attendance: (Rule-13)

1) Seven days advance notice

2) Authorization to represent

3) Ex-parte hearing, if the Appellant fails to appear

Appeal Order(Rule-14)

The Competent Officer or Appellate Authority

1) Shall pronounce Order in open & in writing-Form-D

2) Copy of the Order: 7 days from date of order

3) Copy of the Appeal order to Appellant DO/CO/

4) Mark a copy to the Public Authority instruction to recover

from salary/Hon of the DO

5) If Departmental enquiry is required send a copy of the order

to the Public Authority or Appointing Authority

Recovery of Compensatory Cost: (Rule-15): The Competent Officer shall

1) Cause to recover Comp Cost from the next salary/Hon

2) Deposit under concerned Head of Account &

3) Send copy of the Challan to the concerned DO

Maintenance of Records- (Rule-16) :

Maintenance of Record: DO/CA/AA are required to maintain

records of all cases in Form E-1,E-2,E-3 & periodical report to

the Head of Public Authority;

• Show Cause Notice through e-Mail in Form-E-4

• SC Notice to through e-mail in Form-5 shall be issued to

CO/AA who have exceeded the time limit

• Report on default cases shall be intimated to DPAR in Form-

E-6 at the end of the Month.

• The Head of Public Authority shall include the same in Annual

Report. List of officers with “No-Default” shall be published &

letter of Appreciation in Form-E-7 - Rule-16

Training: Training different Public Authority and all other Authorities;

1) Organize campaigns for Public Awareness Programs to exercise the Rights contemplated under the Act

2) Provide Staff & Infrastructure for effective implementation

3) Give timely & effective dissemination of accurate informn by Public Authorities about Notified Services, Timelines & processes

4) Train DOs/COs & AAs of their duties under the Act

5) Departments to frame guidelines containing such information

6) Departments to Update information & publish

Monitoring & Implementation (R-18)

• Introduce centralized Monitoring using ICT & delivery status of services on line

Dissemination & Training- (Rule-17)

How Pilot Taluks have Performed? (As on 11.03.2012)

.Department wise pending

RDPR -003

Revenue -015

Transport -106

BBMP -017

Total -141

Taluk Wise

Bidar: 52

Dharwar: 78

Chitradurga: 08

Dakshin Kannada: 03

Total : 141

Out of 52643 Applications received 28650 Applications

are disposed-(54.42%)

141 Applications are Defaulted(Compensation Cost)

Innovations in SAKALA Success of SAKALA depends on People participation

People need to be empowered with Information

Information holds the Key to Good Governance

Provide right information to the people on Sakala

Help Desks are proposed engaging People/NGOs

Help Desks driven by Technology/Internet/ will be opened in all Taluk Office

All information on SAKALA will be provided face to face/telephone/e-mails etc.,

Few Ideas for SAKALA • Pay compensation to the Bank Account of the

Applicant electronically

• Automatic escalation to the CO in case of Default

• Citizen Ratings should be taken by e-mail/Mobile

• Include demand based services like Rt to Food/Ration Card/Voter Regn/Property Regn/

• Give widespread Publicity/Collect Feed back regularly on Toll free

• Include B’lore-One & other Centers for Service

Suggestions based on Study by IIMB

The system has to be improved to till ultimate purpose of Customer Satisfaction is achieved

Analyse the Root cause for Default & take Preventive & Corrective Action for making system robust & error proof

Re-Define definition of Disposal with the completion of the process but the Applicant has not turned out

Reengineering the process & simplify

Develop Roadmap for expansion of SAKALA to other departments

GOVERNMENT OF BIHAR COMMERCIAL TAX DEPARTMENT

PRESENTED BY:

GROUP 4

CTO (PROBATIONERS)

GROUP PARTICIPANTS

• KUMARI ANAMIKA

• NIHARIKA CHHABI

• INDU KUMARI

• SANTOSH KUMAR

• Md. SHABBIR

• RAJEEV RANJAN

• ARUN CHOUDHARY

WELCOME TO THE PRESENTATION ON TAX to GDP RATIO

OF UNION AND STATES

INTRODUCTION

VS It is a economic measurement that compares the amount of taxes collected by a government to the amount of income that a country recieves for its products. Tax to GDP ratio = Total government tax collection Country’s GDP It gives a rough idea of how much the economy of a specific government is fuelled by its tax collection.

TAX

GDP

FEATURES

•DEPENDENCY ON BORROWINGS

• SHOWS REVENUE GENERATION CAPACITY

•CONTRIBUTION OF DIRECT TAX MORE IN DEVELOPED COUNTRIES

• IMPORTANT INDICATOR OF ECONOMIC DEVELOPMENT

MORE TAXABLE CAPACITY

GROWTH WITH EQUITY

FISCAL DEFICIT

EFFICIENT TAX ADMINISTRAT

ION

ACTS AS ECONOMIC DEVELOPMENT INDICATOR

HIGH RATIO

BROAD SERVICE SECTOR

HIGH TAX PAYING

CAPACITY

HIGH DIRECT

TAX

LOW RATIO

UNORGANIZED

SECTOR

LOW TAX PAYING

CAPACITY

WELFARE STATE

SHARE OF TAX IN REVENUE

Sources of Tax Revenue

TAX TO GDP RATIO COMPARISION WITH OTHER COUNTRIES

TAX TO GDP RATIO (YEARWISE)

TAX TO GSDP RATIO

CAUSES OF LOW TAX – GDP RATIO

NARROW

TAX BASE

UNEQUAL

DISTRIBUTION OF

INCOME

TAX

EVASION

TAX

AVOIDANCE

LACK OF

POLICY

INITIATIVE

INEFFICIENT

REVENUE

ADMINISTRATION

LARGE

UNORGANISED

SECTOR

SUBSIDIES & NON

DEVELOPMENT

EXPENDITURE

POOR

GOVERNANC

E

COMPLEX

TAX

STRUCTU

RE

GOVERNMENT INITIATIVES

Introduction of VAT in 2003 Steps taken to broaden the tax base

Rationalisation of tax rate and tax slabs

Proposed introduction of GST

Proposed introduction of DTC

Steps taken increase compliance

Making PAN compulsory for every transactions

Inclusion of new services under service tax

E-initiatives

Fiscal consolidation measures

Signing of DTAAs

CHALLENGES

Global Economic slowdown

Low economic growth

Agriculture based economy

Populist measures

Slow growth of investment

Slow process of fiscal consolidation

Improving tax buoyancy

Matching tax potential to revenue

Raising revenue in a progressive

way

High level of Inflation

SUGGESTIONS

Widening tax base

Low rates : Few rates

Enhancing equity of tax system

Establishing effective revenue administration

Efficient strategy to deal with non – compliance

Simplification of tax laws and regulations

Slashing wasteful subsidies

Good governance

CONCLUSION

NEED TO INCREASE THIS RATIO

GST in place – replace all the indirect taxes and boost tax revenue

Retrogenic taxation will be done away with

Direct taxes already sharing positive trend

Need to work on corporate sector and service sector

We need to ensure our commitment and dedication

Together, we can and will make a difference

** • “To collect taxes from citizens the way a Bee

collects Honey from the flowers - quietly without inflicting pain".

Chanakya's Arth Shastra

Presented By

Ms. Pratima Kumari

Ms.Hemlata Kumari

Ms. Shashibala

Ms. Renu

Ms. Anju Kumari

Ms. Swarnalta Kiran

Mr. Ajay Kumar Singh

Mr. Shivanad Singh

"A customer is the most important visitor on

our premises.He is not an interruption in our

work ‐ he is the purpose of it.We are not

doing him a favour by serving him. He is

doing us a favour by giving us the

opportunity to serve him.”

E-governance is the application of Information and Communication Technology (ICT)

for delivering government services,

exchange of information communication transactions,

integration of various stand-alone systems

and services between government-to-customer (G2C), government-to-business (G2B), government-to-government (G2G) as well as back office processes and interactions within the entire government framework.

1 • Simplification of processes

2 • Transparency

3 • Accountability

4 • Online Service Delivery

5 • Anywhere and Anytime

6 • Seamless integration with other system

7 • Effective Monitoring

Core issue

Methods for institutional & policy analysis

9

Dealers

• E-VARDAN – Online registration request & processing

• E-VARADI – Online submission of returns

• E-payment – Online payment of Taxes

• E-CST – Online request & issue of the CST forms

• E-Grievance – Online grievance redressal

• E-Clearance – Online request & issue of Clearance Certificate

• M-Services – Mobile Based Alerts

Dealers/ Transporters

• E-SUGAM/M-SUGAM forms – Online request and download of Form for Goods movement

• E-SUVEGA forms – Online request for Transit Pass for movement of goods through State

CItizens

• e-Grahak/m-Grahak – SMS based information/complaint by public on the dealer

Officers

• E-CAS – Comprehensive Audit System

• E-reconcile – Tax Collection Reconciliation system

• E-enforcement System

• E-DCB – Demand Collection Balance System

• E-Dealer File – Consolidated Dealer Information System and Analysis

E-SERVICES FOR MAIN STAKEHOLDERS

10

1 • E-VARDAN – Online registration request & processing

2 • E-VARADI – Online submission of returns

3 • E-payment – Online payment of Taxes

4 • E-SUGAM forms – Online request and download of Form for Goods movement

5 • E-SUVEGA forms – Online request for Transit Pass for movement of goods through State

6 • E-CST forms – Online request and issue of the CST forms

7 • E-Grievance – Online grievance redressal

8 • E-Clearance – Online request and issue of the Clearance Certificate

M-SERVICES – MOBILE BASED SERVICES

1 • M-SUGAM request – SMS based request and issue of SUGAM Form

2 • M-TIN Verify – SMS based verification of dealer details

3 • M-CST form Verify – SMS based verification of CST forms

4

• M-SUGAM alert – SMS based daily alert to dealer on SUGAM downloads from his account

5 • M-payment Alert – SMS based alert to dealer on e-Payment receipt

6

• M-SUGAM Verify – SMS based verification of SUGAM form by mobile Check Post Officers

7 • M-Grahak– SMS based information/complaint by public on the dealer

11

E-UPaSS “Uploading of Purchase and Sales Statement

“

An electronic service like e-payment, e –Sugam, e-

Suvega, e-subidha, etc.,

A facilities to the dealers to upload the details of

purchase and sales

Synergy between the department and the stake holders

PURCHASE

• UPLOAD XML FILE

• DIRECT ENTRY

SALE

• UPLOAD XML FILE

• DIRECT ENTRY

REVISION

• UPLOADED FILE OR DIRECT ENTRY

APPROVAL • UPLOADED FILE OR DIRECT ENTRY

Uploading Software : User friendly and simple

Training :all stake holders from block to state level

Department Personnel , dealers , Advocates , Accountants

etc.

Help Desks: dealer care , customer care ,User Manual -booklets

Inclusive Approach: Each one , teach one

Feedback : Electronic (Whatsapp, e mails etc.) , FAQs , Time bounded queries resolution

Simple Uploading of Goods Arrival and Movement .

Sugam – The trader accounts the transactions first and only then can he/she despatch the goods.

Highlights

Anytime any

anywhere from

parallel web-sites

No need of printed

form, SUGAM Number

is sufficient.

SUGAM generation

through SMS.

Average 1.20 Lakh

SUGAM generated/day

(83 SUGAM/minute)

Online Request

Online Delivery

Status Checking

Online Process

Time-bound Processing

Effective Service

Delivery

Paradigm Shift

Department as regulator

Frequent visits by dealers

Policing by Department

Paper based information

Old paradigm – Post event confirmation

Department as a service provider

All services at doorsteps

Self Policing by Dealers

Everything is electronic

New paradigm - Pre event confirmation

THE OUTCOMES - 1

Advantage Trade

• Services at door steps

• Dealers no longer come to the offices.

• About 30,000 visits of dealers saved/day.

• Zero scope for corruption.

Fast Track Transportation

• Check posts became much more friendly.

• The delays at check posts were reduced.

THE OUTCOMES - 2

Efficient Tax Administration • Tax administration has become more

efficient.

• There was a marked increase in revenue (cannot be ascribed to Sugam only).

• The drudgery of officer has reduced and his/ her accountability has increased.

• Effective analysis of dealer file by officers

Environment friendly • Saves about one ton of paper per day.

• Saves waiting time and fuel consumption at check posts for transporters.

THE CHALLENGES

E - governance

BPR – New Laws, Rules &

Procedures

Technological Interventions –

Environment Building Capacity Building

Supervision and Discipline