The Shiromani Akali Dal (SAD) led Punjab government is once again under pressure from its ally,the BJP,this time over the implementation of the e-TRIP regime. Two months after the Punjab government started the virtual information collection centre,e-TRIP (Transportation Information Within Punjab),to facilitate submission of information regarding intra-state movement of goods by traders,there are talks regarding its roll back. In July,the excise and taxation department had made it mandatory for all VAT payers in the state to furnish information regarding movement of goods within Punjab,wherein the sale amount was Rs 3 lakh or above in a single transaction. In case of iron and steel units,this limit is fixed at Rs 2 lakh and above. The information was to be provided on the department's website. Once the information is provided,an acknowledgement slip is generated which will have to be carried with the consignment of goods,failing which the transaction will be deemed illegal. Secondary units dealing in iron and steel in the state had vehemently objected to the facility when it was introduced. More than 600 induction units went on a week-long strike objecting the move. The representatives of the industries had met Deputy Chief Minister Sukhbir Singh Badal over the issue. He had assured them that he would agree to roll back the system,in case they come up with suggestions to introduce transparency in collection of VAT and plugging of leakages in the payment of taxes. Sources added that though traders had been unable to suggest a better system,they have increased pressure on the BJP to convince the government to revoke the decision. Till now,out of the 2.2 lakh VAT payers in Punjab,almost 5,000 have started working on the system. Those who have nothing to hide don't mind the system. The problem is that the data which is generated by following the system in Punjab is shared by the central taxation agencies. Once a transaction comes within the government system,it is automatically picked by the central board of direct taxes and the central excise department. These traders are then liable to pay taxes to the central agencies for these transactions. In order to avoid paying those taxes these traders do not want to expose their transactions to any government system, pointed out an excise department officer. Traders said that the uploading of intra-state transaction data had been made compulsory by merely a public notice which amounted to the state exceeding its powers,specially when no such system was envisaged in the rules and regulations that defined VAT collection in the state. Industry representatives also apprehended that business transactions could be severely affected if the department's online system developed any technical snag. They also feared that this would entail them revealing their user names and passwords,used for e-filing,to data entry operators that could be misused. BJP ministers are said to have discussed the issue during the cabinet meeting held on Wednesday. Sukhbir is,however,reportedly adamant on continuing with the system.
