Only Rs 27 cr tax evasion detected through E-Trip in Punjab

Anti-tax evasion measure E-Trip system, which has been rolled back by the Punjab government after industry's protest, helped in raising tax at Rs 27 crore for the state kitty as against projection of Rs 200-300 crore.
"We have been able to detect tax evasion amounting to Rs 27 crore through E-Trip system," a senior official of Punjab Excise and Taxation department told PTI today.
The major evasion was detected in iron and steel sector, the official said.
Before the introduction of E-Trip system in 2013, the excise and taxation department had projected to garner additional revenue of Rs 200-300 crore per annum with this anti-tax evasion measure.

The department had aimed to check rampant tax evasion like bogus billing prevailing in several industrial verticals including iron & steel, yarn, plywood etc with Transportation Information within Punjab (E-Trip) system.
However, it was observed that some unscrupulous traders managed to get away from e-trip system's radar by hoodwinking the department in connivance with some employees, which almost defeated the purpose of the department to check "massive" evasion.

"E-Trip system was a sheer harassment for state's trade and industry as it tried to choke industrial growth," Ludhiana based cycle manufacturer Satish Dhanda said.
"This system marred the image of SAD-BJP government to some extent as it hit the normal business activity in the state, besides leading to corruption," said Dhanda who is part of 6-member committee formed by state government to resolve industry's issues.

"Several industrialists were harassed by being forced to pay heavy penalty even for no fault of theirs," he claimed.
The SAD-BJP led Punjab government on January 30 had announced to rollback its anti-tax evasion measure E-Trip system on six commodities. However, it raised the tax on iron and steel from 2.5 per cent to 3.85 per cent.
Despite stiff resistance from trade and industry, Punjab government had brought six items cotton, sarson (mustard), plywood, iron & steel (excluding scrap), yarn and vegetable oil (edible and non-edible) under E-Trip to check evasion from September 2013.
Under this system, any dealer selling these goods value of more than Rs 50,000 within the state will be required to submit information regarding the transaction on the website of the department before physical movement of the goods takes place.

Industry claimed that because of e-trip system, the movement of goods were hampered, causing drop in business volume by as much as 70 per cent.