e-GOV INITIATIVES IN COMMERCIAL TAXES, WEST BENGAL GOVERNMENT OF WEST BENGAL

Tax Administration Reforms Tax Policy Reforms REFORMS UNDERTAKEN Tax Administration Reforms Tax Policy Reforms Direct Reforms (Restructuring, Reorganisation) Indirect Reforms (Through ICT & Process Reengineering) REFORMS IN VAT LAWS

Re-organization of the Enforcement Wing Direct Administration Reforms: Reorganisation in the Directorate of Commercial Taxes Re-organization of the Enforcement Wing The enforcement wing, the Bureau of Investigation has been trifurcated into three wing spatially covering the entire State. 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

Tax Administration Reforms: Reorganization in the Bureau of Investigation 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: Formation of the Data Analysis Wing (DAW) 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 Data Analysis Wing has so far generated more than 400 (Four Hundred) reports.

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

ACHIEVEMENTS OF DAW in 2013-2014 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

Online registration of dealers under 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.

Online registration of dealers under WBVAT, CST and WBST Act 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 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.

Online registration of dealers under WBVAT, CST and WBST Act Link to E-Registration

VAT, CST and WBST returns 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

Introduction of Digital Signature Certificate (DSC) Administrative Reforms through Greater Use of Information and Communication Technology in Directorate of Commercial Taxes Introduction of Digital Signature Certificate (DSC) 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) Link to Digital Signature Certificate

One common portal for all Government Receipts. Administrative Reforms through Greater Use of Information and Communication Technology in Directorate of Commercial Taxes Online payment and digitization of over the counter payment through GRIPS 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 Link to e-Payment through GRIPS

No manual issue of ‘C’ forms and ‘F’ forms. Administrative Reforms through Greater Use of Information and Communication Technology in Directorate of Commercial Taxes Online application, generation and printing of dematerialised CST related Forms 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 Link to generate CST Related Forms

Administrative Reforms through Greater Use of Information and Communication Technology in Directorate of Commercial Taxes Installation of State of the art Server for Internal Application (IMPACT) 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

New IMPACT

MIS AVAILABLE IN IMPACT

MIS AVAILABLE IN IMPACT (contd)

MIS AVAILABLE IN IMPACT (contd)

MIS AVAILABLE IN IMPACT (contd)

VAT Refund and Payment through ECS Indirect Administrative Reforms through Greater Use of Information and Communication Technology in Directorate of Commercial Taxes VAT Refund and Payment through ECS 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 Link to E-Refund

E-Industrial Promotion Assistance Scheme (e-IPAS) Administrative Reforms through Greater Use of Information and Communication Technology in Directorate of Commercial Taxes E-Industrial Promotion Assistance Scheme (e-IPAS) 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) Link to e-IPAS

Online Dealer’s Profile Indirect Administrative Reforms through Greater Use of Information and Communication Technology in Directorate of Commercial Taxes Online Dealer’s Profile 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

View of Dealer’s Profile

View of Dealer’s Profile (contd)

View of Dealer’s Profile (conts)

Online Appeal, Revision & Review 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.

Document Management System 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

Tax Policy Reforms by Directorate of Commercial Taxes 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

AUDIT BY C.A. OR COST ACCOUNTANT Tax Policy Reforms 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

Directorate of Commercial Taxes Tax Policy Reforms by 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.

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 System Compliance 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.”

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