Excise and Taxation Department, Govt. of HP ... - egovreach

Excise & Taxation Department
Excise and Taxation Department, Govt. of HP
Himachal Pradesh VAT IT Project
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Agenda
About Excise and Taxation Department
Background of Project
Stakeholders of Project
Value-adds to Taxpayers and Department
Current Status of Project
Change Management – Challenges and Mitigation
Milestones Planned and Vision Ahead for IT Enablement
Assistance Required from State IT Department
Excise & Taxation Department
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About Excise and Taxation Department
Excise & Taxation Department
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Excise & Taxation Department
About Excise and Taxation Department
� Excise and Taxation Department has a very important place in the fiscal structure of
Govt. of Himachal Pradesh
� Its the highest revenue collecting department of the State Govt. contributing approx.
65% of the State’s Total Revenue
� Administers VAT, CST, Excise Duty, Luxury Tax, Certain Goods Carried on Road
(CGCR), M&TP, Entry Tax, Passengers and Goods Tax (PGT), etc.
� Administrative Structure – 3 Zones, 12 Districts, 65 Circles, 37 Check-Posts
� Total Taxpayers & Licensees with Department – Approx. 65,000
� Revenue in FY 2009-2010 : Rs 2,275 Crores
� Revenue in FY 2010-2011 : Rs 3,043 Crores (Growth of 33.8% over
FY 2009-10)
� Revenue in FY 2011-12 (upto Oct’2011) : Rs 2113.47 Crores
� Cost of Collection – 1.04%
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Mission: Mobilizing
Public Revenue for
social and economic
development of the
State through effective
Tax Administration in a
symbiotic business
environment
Excise & Taxation Department
Vision and Mission of Department
To provide
Improved Service
to the citizens by:
• Bringing in
transparency
• De-layering tax
administration
To support the
move towards a
taxpayer-friendly
tax administration.
To optimize Tax
Revenue through
enhanced
compliance
Vision: Towards
Economic Self
Reliance
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Background of the Project
Excise & Taxation Department
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Excise & Taxation Department
Background of the Project
� Computerization Project of HP Excise and Taxation Project commenced in June 2010
� Being carried out under supervision of Empowered Committee of State Finance
Ministers, Govt. of India
� Duration of Project – 1.5 Years of Implementation and 5 Years of Support Operations
� Consultants to Projects – M/s Pricewaterhouse Coopers (PwC)
� Implementation Partner – M/s Tata Consultancy Services (TCS)
� Scope of Project:
– Data Centre Setup at Shimla
– Hardware for DC and Field Offices
– 3 rd Party Softwares – Databases, Enterprise Management System, Anti-Virus Systems, etc.
– Site Preparation for ETD Offices
– Application Software for Business Process Automation of Taxation Processes under Acts
Administered by Department
– Web Portal for Electronic Service Delivery for ETD’s Taxpayers and Citizens
– Facilities Management Services
– Helpdesk Operations
– Data Migration
– Data Digitization – Legacy Data starting from 1 st April 2005 (VAT regime onwards)
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Background of the Project – Outreach
Users
� 600+ Departmental Users envisaged on
the VAT Application (Intranet)
� 65,000+ Taxpayers
Technical Coverage
Excise & Taxation Department
Geography
� 110 Locations of ETD spanning across
the State
� HQ (Shimla), 3 Zones, 65 Circles, 37
Check-Posts, 18 Licensed Distilleries /
Breweries on a Central IT System
� High-End, State-of-Art Computing Infrastructure –Data Centre Setup at ETD-Shimla
� Central IT infrastructure -Servers, Storage, Firewalls, Switches, Load Balancers,
Databases, Clustering, Anti-Virus Systems, Enterprise Management System, and
application.
� 400 PCs, 48 Laser Printers, 203 DMPs, 286 UPS, 13 DG Sets, 98 Switches, 104 Routers,
36 Biometric Devices, 15 Scanners
� Network Connectivity provided by BSNL on MPLS with CDMA Backup and HIMSWAN as
alternative
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Excise & Taxation Department
Background of the Project – Application Framework
ETD
Officials
Taxpayers
TINXSYS
Banks
Treasury
App.
Users
Internet,
Direct
/post,
Comm
Links
Registration
Payments
Returns
Tax
Calculation
Error
Processing
Forms
Act &
Rules
Assessment
Alerts
Engine
Security
Dealer
Master
Penalty
Refunds
Payment
Details
Appeals/
Revisions
Enforcement/
Recovery
Goods
Movement
Notice
Service
Rules
Engine
Rates/
Commodity
MIS
Print
Services
Housekeeping
Archival Waybills/
Invoices
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Excise & Taxation Department
Background of the Project – Application & Portal – Broad Overview
E – Services
• E – Registration, E – Returns
and E – Payments
• E-Declarations for Goods
Movement
• E- Refund & E – Appeals
• E-CST Forms
• E-Communication
Appeals & Revisions
• First & Second Level Appeal
• Stay of Recovery
• Revisions & Corrections
• Rectification of Mistakes
Excise and M & TP
• Issuance of Licenses
• Issuance of Passes & Permits for
Goods Movement from Units
• Returns and Payments
Registration
•Dealer & Tax Type Registration
•Amendment / Cancellation /
Suspension / Restoration
•GST to TIN Conversion
•Dealer Data Correction
Features
Recovery & Enforcement
• Compliance Notice to defaulters
• Tracking of Recovery Action
• Investigation
• Search & Seizure
Returns & Payments
• Returns & Payment Entry
• Scrutiny of Return
• Automated Compliance Check
• Calculation of Interest & Penalty
and issuance of notices
Audit & Assessment
• Provisional Assessment and
Other Assessments
• Risk based Audit
• Audit Selection & Assignment
Penalty & Refunds
• Determination of Penalty under
various sections and Order
Generation
• Composition of Offences
• Refunds Processing
• Refunds Adjustments
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Stakeholders of the Project
Excise & Taxation Department
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Excise & Taxation Department – ETD, Govt. of HP
Finance Department, Govt. of HP
Treasury Offices, Govt. of HP
Banks (who are authorized to Collect Taxes)
Office of the Accountant General (AG)
PriceWaterhouseCoopers – PWC (Project Consultants)
Tata Consultancy Services – TCS (Implementation Partner)
And above all…………………
Stakeholders of the Project
TAXPAYERS / LICENSEES
TAX CONSULTANTS / ADVOCATES / CAs
Excise & Taxation Department
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Tax office
Counters
Hybrid
Model
Excise & Taxation Department
Service Delivery – The Transformation
Tax
Practitioner
Office
Own Office
or Home
Kiosks /
Cyber Cafes
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Value-Adds to Taxpayers and Department
Excise & Taxation Department
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Excise & Taxation Department
Value-Adds to Taxpayers
Increased Service time Window for taxpayers to 24x7
� No more bank/government office time constraints for submissions
Reduced Cost of Compliance for taxpayers – Time and Cost
� No more standing in queue, any time submission
� No more stack of papers, no more multiple copies of returns
Location Independent for compliance
� Just a click away, from anywhere internet access
Faceless Services adding to Transparency
� Reduced person dependency
ETD Portal to work as mentor for taxpayers
� what, how, when … dealer friendly guide for dealers and practitioners for VAT regime
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Value-Adds to Taxpayers
Availability of Information
� Copy of latest Act, Rules, Notification available instantly on portal
� Copy of Notices and acknowledgement sent to tax payer in his inbox
Excise & Taxation Department
Tracking of Service Delivery of Department
� Dealer can track the status of his application from portal which results in reduction in
visits, time & cost
Ease in Refund Processing
� Chances of Self Assessment is increased due to process of only corrected returns to
be accepted on portal.
� Assist ETD in processing refund claim
Quick Service towards RTI and to Stakeholders
� With availability of all information in a single, central system, ETD can render quick
services to all concerned
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S.
No.
Item Manual System New IT System (Targets)
1 Registration Approx. 21 Days for TIN and RC
Issuance
Visit to Office multiple times
2 Tax Payment 3-10 Days prior to due date via
Cash/DD & Cheque respectively
Visits to Banks
3 Returns Filing Compile bulky papers and submit to
ETD office
4 Declaration of Goods
for Imports and
Exports
Impact on Taxpayers
Obtain Forms
Fill and Submit manually in office /
checkpost
5 Refund of Credits Apply manually
Verification took time to release
Refund Order
Visit to Bank by Dealer
Excise & Taxation Department
• Approx. 1-7 Days for TIN Issuance
• Apply from Own Office (24X7)
• Receive TIN on Email
• Reduction in visits
• Can be done upto due date including
holidays and up to 11:59 hours
• Savings in Bank Charges & Interest
• No Need to visit Bank and Office
• File from Own Office (24X7)
• Online Submission
• No need to visit office
• Apply Online (In Pipeline)
6 Communication Letters / Physical Visits to ETD • Online Communication System
• 24X7 Helpdesk Already Operational at
Shimla
SAVINGS IN TIME, EFFORT, MONEY & VISITS
EASE OF COMPLIANCE & ADDED CONVENIENCE
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Excise & Taxation Department
Value-Adds to Department
� Reduced Cost of Collection for each Rupee collected
� less time to reconcile, reduced follow-ups, prompt collections
� Real-time Supervision & Monitoring of Work Done at Different Levels in All Field
Offices by Commissioner
� Availability of real-time work tasks information at all levels of hierarchy – completed,
pending, ageing, etc.
� Real time complete data
� latest positions of tax collections
� correct information exchange
� Sharing taxpayer ledger with taxpayer
� improved transparency
� self-verification by dealer about taxes, returns, etc.
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Value-Adds to Department
Excise & Taxation Department
Major Aim of VAT – Self Assessment – Movement in that direction
� Availability of online returns and increase in compliance and correctness of information
� ETD officials get more time to focus on defaulters / incorrect returns
� Reduction in time for scrutiny
Policy Making and Decision Making
� MIS, Detailed Analysis, Slicing-Dicing available which assists Department in reviewing
policies and decisions
Achieving Taxpayers Delight – Maximizing Impact
� Electronic Services available on 24 x 7 basis
� Dedicated Helpline available on 24 X 7 basis for quick redressal of queries / problems /
requests
� Application tracking system available for online requests – reduces phone calls / visits
required to ETD Offices
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Excise & Taxation Department
Value-Adds to Department
Exchange of Information
� Data available on electronic format can be exchanged between different Government
Departments / Agencies i.e. TINXSYS, NSDL, BANKS
Increase in Taxpayer Base
� Due to availability of all information, cross checking of information, increased
transparency results in increased tax compliance
Reduction in Time Barred Cases
� Selection of dealer for audit through risk parameters
� Reduction of time in scrutinizing all information
� Reduction of time in gathering information for Management Submission on month,
quarter, half year or yearly basis
� More time available to focus on assessment, refund and recovery
Opportunity for process improvement
�with information being available centrally and online checks available, number of
manual checks going down gradually
�processes getting streamlined
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Excise & Taxation Department
Value-Adds to Department – Impact on Cost Savings and
Revenue Growth
Increment in Revenue
� Increase in taxpayer base
� With penetration of IT and Taxpayer Awareness of Information Availability with
Department, increase in self-compliance and self-declarations
� On-time tax collections to avoid penalties and interests
Targets to Reduce Costs on Following Parameters:
� Time to process files based on documents
� Time to scrutinize returns in details resulting in netting of more revenue
� Reduce consumption of Stationery
� Reduce expenditures towards courier / postages
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Current Status of Project
Excise & Taxation Department
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Work Item Current Status
Excise & Taxation Department
Current Status of Project
Infrastructure Services � Data Centre setup and Operational at ETD Head Quarters at Shimla
� Infrastructure for All Offices, Barriers, Distilleries, Breweries and Bottling Plants
Setup and Operational
� Internet Connectivity at Data Centre Operational
Site Preparation Services � 109 Sites of ETD ready with Electrification, LAN, etc. works
Application Software � Core Modules of Registration, Returns, Payments and MIS are Operational at
all ETD Offices
� Check-Post Software Operational at 7 Check-Posts
� Application Software for Other Modules – In Process of Pre-Roll-Out Testing
ETD Web Portal
(https://hptax.gov.in)
� Electronic Payments facility Operational with SBI, PNB and UCO
� Electronic Returns facility Operational (* Made Mandatory for a Class of
Dealers)
� E-Declarations for Imports and Exports of Goods into/outside HP Operational
(* Made Mandatory for a Class of Dealers)
� Portal Successfully Audited for Security by Govt. of India empanelled Auditor
� Portal is multi-browser compatible
Data Digitization � Work in Progress in 57 out of 65 Circles as on date
Data Migration � Data Migration – Completed for all 65 Circles and Old Software closed
Training – IT Awareness,
Security and Application
� IT Awareness & Security – Completed for all Officials of ETD except those on
leave etc.
� Application Software and Web Portal – Phase I training completed for all ETD
Officials
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Network Connectivity at DC, ETD
HQ and ETD Offices
Excise & Taxation Department
Current Status of Project (Cont’d)
• 37 out of 109 Offices connected by BSNL on WAN as on 30-
Nov-2011
• Internet Connectivity available at Data Centre @ Shimla
Area Key Usage Statistics – Web Portal
Dealers Signed-up On Portal Till Date 5,700+
E-Payments Collected Till Date Rs 72+ Crores
E-Returns Filed Till Date 1,800+
E-Declarations Carried out Till Date 28,000+ ( At 7 Check-Posts where System is Rolled-Out
Presently)
E-Registrations 80+
Area Key Usage Statistics – VAT Application (HimTAS)
New Registrations Issued from New
System
VAT – 1350+ ; CST – 900+
Returns Filed in New System 17,500+ (Manual Returns submitted by Taxpayers to ETD
Offices)
Manual Declarations of Goods
Declared at Check-Posts
300+
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Excise & Taxation Department
Change Management – Challenges and Mitigations
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Within Department
Challenges
• Processes are not streamlined – different
processes in different offices
• IT Awareness
• Risk of IT System replacing Manpower
• Fear of using system and working on
system
Change Management
Excise & Taxation Department
Mitigations
• Application and Process trainings
conducted for All Officials
• Extensive Awareness Programs
organized for all Officials with exit tests
• Using system, officials realized that
system is for decision making and not
replacement of officials
• Complete handholding training given.
Further complete support at the time of
processing application being provided
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Outside Department
Challenges
• E-Services Awareness
• Risk of Information
• Process Simplification and Re-
Engineering – Communication
Change Management
Excise & Taxation Department
Action Taken
• Awareness Workshops, Sessions and
Detailed Process Demonstrations for E-
Services Organized in all Districts
• Through session and internal
communication methods, message
conveyed that e-Services are for
convenience of Taxpayers
• Through awareness sessions, workshops,
web portal and advertisements, taxpayers
are communicated regarding changes and
simplification in current processes
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Excise & Taxation Department
Milestones Planned and Vision Ahead for IT Enablement
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Excise & Taxation Department
Milestones Planned and Vision Ahead for IT Enablement
Area Tentative Timelines
Roll-Out of Core Modules of Registration and Returns for 6 Other
Allied Acts in 5 Pilot Locations and then Remaining Locations
Roll-Out of Secondary Modules of Assessment, Penalty, Refunds,
Enforcement, Recovery, Appeals in 5 Pilot Locations and then
Remaining Locations
Pilot Locations – Dec’2011
Other Locations – Dec’2011
Pilot Locations – Dec’2011
Other Locations – Jan’2012
Roll-Out of E-CST Forms for Taxpayers All Locations – Dec’2011
Implementation of New E-Payment System (based on Nation-wide
Electronic Funds Transfer – NEFT Model )
Dec’2011 – Jan’2012
Complete Roll-Out of New IT System in All Locations of State March’2012
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Excise & Taxation Department
Milestones Planned and Vision Ahead for IT Enablement
� Current project was planned way back in 2006-07 with Govt. of India – EC
� Over past 5 years, lot of business process modernizations and technological
advancements have taken place in Country
� Dept. has planned to adopt modern systems over and above the current project via the
National E-Governance Plan – Commercial Taxes – Mission Mode Programme (CT-
MMP)
� Funding upto 75% is granted by Govt. of India, balance 25% to be borne by State Govt.
of HP under CT-MMP
� Detailed Project Proposal approved by State Govt. and Submitted to Govt. of India
� Broad Areas Planned to be Covered:
� Business Continuity and Disaster Recovery Setup
� Data Centre Upgradation
� Infrastructure Augmentations at Data Centre and Field Offices
� VoIP System for all Offices of ETD
� Integration with Himachal Pradesh Citizen Service Centres (CSCs)
� Setup of Facilitation Centres for Taxpayers
� Software Augmentations - Extended E-Services, PAN Verification System, End-to-End ECS based
Refunds, Migration to GST, etc.
� Security System for Digital Signature based Documents Processing
� Consultancy Charges
� Training, Capacity Building, Workshops, etc.
� Certifications and Assessment of Systems
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Excise & Taxation Department
Assistance Required from State IT Department
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Excise & Taxation Department
Assistance Required from State IT Department
ETD WAN and Internet Connectivity – Criticality and Dependencies
� HP VAT Application is a centralized system hosted out of ETD Data Centre at Shimla
� HP ETD Web Portal is hosted out of ETD Data Centre at Shimla
� Due to nature of business, all operations are very crucial – to be completed on time and properly
� Since revenue is involved, 24X7 availability of services are essential
� In next few months, 30,000+ taxpayers are expected to be on portal for availing e-services - this will
increase the load, dependency on network and internet connectivity
� Network Connectivity is a very crucial aspect towards meeting Taxpayer expectations, running of IT
Operations and ensuring full uptime of systems
� ETD is now on a irreversible automation process involving 65,000+ taxpayers and real-time connectivity is
essential on 24X7 basis for successful implementation of the project
ETD WAN Connectivity – Assistance Required from Dept. of IT
� Dedicated Internet Connectivity to ETD Data Centre – at least 16 MBPS with backup
� Robust and Scalable WAN
� Secured Bandwidth dedicated to ETD Operations and no sharing of B/W
� Meet Uptime and SLAs as agreed between ETD and DIT/BSNL
� Auto-Switching between BSNL, CDMA and HIMSWAN Connectivity Modes in Field Offices
� Regular Monitoring of ETD WAN Setup by BSNL
� DIT to fund the cost of WAN Setup and Recurring B/w Charges for ETD since HIMSWAN is not usable
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Excise & Taxation Department
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