53 pc traders now ‘jump the queue’,virtually

Nearly a lakh of the total 1.9 lakh value added tax (VAT) dealers registered with the department are now logging on to its portal to upload their bills. By March 31 this year,the figure is expected to reach 80 per cent as Punjab’s dealers get Net-savvy to beat long queues at its 36 inter-state tax barriers.

As if the congestion and long queues where consignments were held for hours owing to manual clearing of bills were not daunting enough,there were also instances of clerical mistakes during data entry at the barriers — Rs 5,000 worth goods entered as 50,000 or even Rs 5,00,000 — which,by the department’s own admission,led to traders being ‘taxed’ for more than they ‘traded’ for.

The excise and taxation department also cites a third,and perhaps the most crucial reason for going electronic — human interference. “Corruption creeps in whenever you leave room for human interference. There were also instances of many trying to jump the queue as a trader with nearly 50 bills would have to first stand in the queue and then get all the bills cleared manually,which took anywhere between two and five hours,” says Punjab Excise and Taxation Commissioner A Venuprasad.

By availing this facility,the dealers are now uploading data of their transactions or bills from their place of convenience — offices or homes — instead at the information collection centres at the barriers and take print-out of the relevant VAT forms. When at the barrier,they can directly go to taxation inspector’s window and get the documents stamped without wasting any time for data entry.

Citing it as one of the most successful reforms in Punjab,Chief Secretary S C Aggarwal says the scheme has cut down congestion and delays at the tax barriers for truckers and traders. “The figure of those using this facility has already crossed the halfway mark and the percentage is expected to touch 80 throughout the state by the end of this fiscal,” he adds.

The dealers are also being incentivised to log on. The ones using the facility are being charged Rs 5 less for the documents against the Rs 15 for manual clearing. There is also help for those who are not computer or internet-savvy as they can visit facilitation centres of the department to help them go electronic.

During its trial run in July this year,the facility was provided to bulk companies such as courier,cement and petroleum and in October,it was opened to all categories of VAT payers or owners of goods. Since December 6,2010,it has been made mandatory for some categories — cement,courier,automobiles,distilleries,bottling plants,petroleum dealers,clearing and forwarding (C&F) agents,transport companies with more than two vehicles crossing any of the information collection centres in Punjab and vehicles carrying goods of more than five dealers — who are being allowed to pass the barriers only if they produce a self-generated form in VAT 35/36 at the tax inspector’s window on the information collection centre at the barriers.