Any intra-state transaction above Rs 20,000 for any commodity has to be registered online with the state excise and taxation department from June 1 onwards. The department has issued the instruction to all 1.25 lakh tax assesses of Punjab in the industry sector and the department is all set to upgrade the software within a few days. This has been done mainly to target the major tax evaders iron and steel,edible oil,tiles and marbles and hosiery industry from where the department is seeking Rs 200 crore additional tax if this system is followed. The industrialists have,however,reacted sharply to this proposal,calling it another blow after the increase in power tariffs. They are all set to hold a protest against the department on May 12. The All Industries and Trade Forum of Punjab said this was another way to harass the overburdened industry. Narinder Bhamra,convenor of this forum,said: We are already filing online returns and the new instruction will keep us busy all the time. K B S Sidhu,Director,Excise and Taxation,said: We have observed massive tax evasion in these sectors and that is why this system has been evolved. If the business is clean,there is no need to worry. Normally,we have observed that the client sends computer generated bill from one place to another,along with goods,and once the goods are received,the bill details are deleted from their computer. We evolved an idea to catch the evasion. Any transaction above Rs 20,000 will have to be registered online. Only wholesalers and not small retailers will come in this net. He added: For the time being,we are upgrading the existing system and within six months our new system worth Rs 210 crore will be ready. Technical glitches,if any,will not be faced later on. Sidhu said the system would bring in more transparency and industrialists should adopt it.
