Department of Commercial Taxes is the highest revenue-earning department of Government of Madhya Pradesh and, is under the administrative control of the Department of Commercial Taxes. The Department administers following taxation Acts:
- M.P. VAT Act, 2002
- Central Sales Tax Act, 1956
- Entry Tax Act, 1976
- Professional Tax Act, 1995
- Luxury Tax Act, 1988
Around 70% of the revenue of Madhya Pradesh is collected by the department of Commercial Taxes. Under the MP VAT Act, 2002, the dealer, who becomes liable to pay tax has to get registered with Commercial Tax Department. Dealer has to pay tax to the Government according to the rates specified for various commodities.
Need for computerization of Department of Commercial Taxes:
Based on study conducted by TCS regarding the implementation of VAT in MP the total computerization of CTD was suggested.
Computerization of CTD has been accomplished as per the existing CT system with reusable components for transition to VAT in future.
Earlier, nearly all work was manual; computers, where ever used were only for neat desktop typing and recording.
The same information was required to be entered in a number of different places.
It was difficult to check evasion and frauds, and revenue was not as per expectations.
- While there was need to use the same data for a number of different analysis, for each such analysis, separate exercise was required to be done.
- Limited analysis was manually possible on data, specially on heavy volume and/or spatially distributed data.
- Timely action against defaulters (of tax, returns etc) was often not taken for reasons of inefficiency (Timely information not available) of manual operation.
- Slow transmission of instructions, reports and information existed within the department.
- Office procedures were not tax-payer friendly.
- It was difficult to formalize tax policies due to manual and non-scientific analysis of data.
Relevance of computerization of Commercial Taxes:
To make minute scrutiny of filed returns before/ without assessment of dealers.
To properly analyze available data to monitor revenue and to check evasions.
To get indicators for marking cases for selective detailed audit.
To make cross checking of transactions between 2 dealers.
To reconcile dealer’s tax receipts with banks/ treasury for minimizing scams.
Instant and smooth issuance of registrations and various forms to dealers.
To keep proper track of cases for arrears recovery.
To make possible the on-line supervision of subordinate offices.
To offer maximum departmental information to tax payers through web-portal.
Static information is kept on Web-site of Department which contains updated notifications, Act, rules and TIN search.
- E-mail directory of Department officials
- To make CTD a paperless office with e-governance.
- Addresses including telephone number of departmental offices
- Tax Payers service cell provide the online solution to the queries of general public
Existing level of computerization / e-Governance initiatives in the department and the current status.
Analysis of existing Limitations and weakness in the delivery of government services- institutional and financial
- Non availability of Interactive Public Interface: The Department of Commercial Taxes has not implemented its Public Interface facilities yet, which can provide the window for general public to access the benefits of MPTaxNet.
- Check-post Computerization: The Department of Commercial Taxes has 20 check-posts for the purpose of increasing efficiency, reducing delay in interstate transport, effective monitoring of interstate trade and stopping tax evasion in interstate transaction of goods. The Department wants to implement a fool proof system by way of Check-post computerization.
- Less use of MIS: The Department of Commercial Taxes though having full information regarding many details has not been able to take full advantage for Management Information System (MIS) due to non-availability of data warehousing tools.
- e-Returns: The facility of submission of returns online has not been provided to taxpayers. Hence taxpayers have to visit the departmental office unnecessarily. By providing e-Returns department is willing to provide easy return filing facility to dealers.
- e-Challan: The facility of payments of tax by electronic fund transfer has not been provided to tax payers. The dealer has to go to the bank and then deposit his tax through challan. This facility will help him deposit his tax while sitting at home. Also reporting of revenue get some delayed. By providing e-Challan department is willing to implement accurate and fast system for revenue reporting.
- Interlinking with other Departments: The Department cannot share its information with other departments of the state government like treasury, finance and central government department like Income tax for effective targeting and increasing revenue.
- Data Warehousing: Different kinds of data are being captured through MPTaxNet. But due to lack of Data warehousing tool it is not possible for the Department to use this data in an optimum way.
- Hardware Problem: Due to computers, printer and peripheral devices not being provided to various offices as originally envisaged full utilization of the system is not possible.
Brief description of proposed project including likely service benefits:
In any governance system e-Governance is an on-going process. Many more dimensions need to be added as structures and societies become advanced. In this department facility like e-returns, check-post computerization, online payment of tax etc. have to be added. The objective is to provide best, efficient, speedy and accurate service to citizen of the state. Roadmap for Department of Commercial Taxes in e-Governance initiatives would be:
- Online Return Filing
- On line Dealer Queries
- Online Filing of Taxes
- Standard forms Available in Downloadable format
- Policy/Act changes – Web Publishing
- Development & Management of Public Interface.
- Expansion of System( for circle-08 & for DC-12 machines)
- ISDN backup for existing network.
- Transition to VAT.
- Data warehousing tools for optimum use of data.
- Providing 24x7 based public interface. This will also included round the clock interactive services through a Data Center, based upon Interactive Voice System (IVRS), through telephone line.
Project Objectives, Service Levels & Output Indicators
The objective of the project is to provide:
- Online Return filing.
- Issue of Registration Certificates online.
- Registration Status of dealer at any time.
- e-Payments of Tax through electronic fund transfer (Cyber-treasury)
- Exchange of information with other states through TINXSYS.
- e-Tax Administration System providing information regarding assessment and demand raised
- Provide tools to stop tax evasion.
- Cost cutting in implementation, operation and maintenance.
- On-going update in application software to provide easy interface
- Provide ease of database administration.
- Make better use of gathered data through various tools.
- Allow effective version control of the application and database.
- Reduce the overall cost of implementation, operation and maintenance.
- Allow ease of access and provide user-friendly interface for the operations.
- To make Tax administration more citizen-friendly
- To increase the overall efficiency of the system.
- Transparency in departmental procedure
- Speedy response to Dealer
- Helpful in stopping Tax evasion.
- Citizen friendliness with department
- Better analysis of data
- Smooth functioning of System