Despite stiff opposition from trade and industry,the Punjab government is all set to implement anti-evasion measure e-Trip system from September.
The e-Trip system will be implemented from September 1 to check tax evasion as almost all the issues with trade are resolved now, Anurag Verma,Punjab Excise and Taxation Commissioner,said today.
After facing widespread resistance from industry,the state government had postponed the implementation of e-Trip till August 31,enabling the industry to upgrade their IT infrastructure to comply with the provisions of the law. Penal action will be taken by the Punjab Excise and Taxation department (PETD) if industry fails to follow the e-Transportation of Information within Punjab (Trip) system,a department official said.
Ever since Deputy Chief Minister Sukhbir Singh Badal held a meeting with industry to allay their fears over e-Trip system on July 30,PETD has been holding meetings with trade representatives to study their suggestions on the system for implementation. There is a widespread tax evasion especially in yarn,plywood segment and e-Trip is the only way which will keep a check on revenue leakage, a department official said.
Plywood manufacturers are against the departments proposal of imposing Rs 12 lakh tax per press,saying that the department should adopt Haryanas model where only Rs 9 lakh per press is charged. Currently,plywood makers are paying just Rs 2 lakh per press as tax. There are 125 plywood manufacturers with 245 presses in Punjab,paying just Rs 10 crore per year to the state exchequer. The excise and taxation department is getting tax revenue of Rs 250 crore from yarn sector.