"We decided to select only those items to be covered in e-Trip where maximum tax evasion was there. The main advantage of this system is to keep a check on bogus billing which lead to evasion," he said.
After Punjab Assembly passed Punjab Value Added Tax (Amendment) Bill 2013 in March this year, E-Trip system was introduced to record the intrastate transactions which would help in curb the incidents of tax evasion, aiming to generate additional revenue of Rs 200-300 crore per annum. The person-incharge of the goods shall carry along with him electronic receipt bearing unique number allotted to such person while submitting the information on the website of the Department, he said.
Moreover, any dealer sending iron & steel, hosiery & readymade garments, pipes of all kinds like MS Pipe, GI Pipes, ERW Pipes, Plastic Pipes etc., rice and nut-bolt/fasteners outside the state will be required to furnish information regarding the same before the physical movement of goods starts, he said.
Rule 64-B has been added to Punjab VAT Rules in this regard, Verma added.
Verma added that during this week, the Excise & Taxation officials have been directed to conduct checking in the field, but not to impose penalties.
The basic purpose is to make the traders aware about the new provisions.
After that, any violation of the provisions of the Act or Rules will attract penalty under Section 51 of the Punjab VAT Act, he said.
Notably traders have been criticising the e-trip system, saying that it is a time consuming and their data can be compromised.