Financial Daily from THE HINDU group of publications
Wednesday, Sep 22, 2004

News
Features
Stocks
Cross Currency
Shipping
Archives
Google

Group Sites

Industry & Economy - Taxation
Info-Tech - E-Governance


ICICI Info consortium bags VAT panel deal — For tax information exchange system

Our Bureau

The TINXSYS project would primarily facilitate information exchange between sales tax departments across the country and establish a database for all inter-State transactions.


Mr Manoj Kunkalienkar (left), Executive Director and President, ICICI Infotech Ltd, with Mr Ramesh Chandra, Member Secretary, Empowered Committee of State Finance Ministers, at a press conference in the Capital on Tuesday. - Kamal Narang

New Delhi , Sept. 21

SALES tax administrators and fiscal policy makers can, in the coming months, look forward to more reliable data on inter-State transactions.

For the first time, States have agreed to share with each other the basic information on sales tax that is available at their end.

The Empowered Committee of State Finance Ministers on Value Added Tax (VAT) has awarded the contract for roll out of a National Tax Information Exchange System (TINXSYS) to a consortium led by ICICI Infotech Ltd.

The TINXSYS project would primarily facilitate information exchange between sales tax departments across the country and establish a database for all inter-State transactions. It would also provide a platform for dealers to verify the validity of registration numbers of counter-party dealers.

The project would be implemented on a build, own, operate and transfer (BOOT) basis over a period of 5 years. It will cover all States and Union Territories and would be completed in two phases.

The first phase involves pilot implementations in seven States (West Bengal, Karnataka, Kerala, Delhi, Punjab, Haryana and Assam) over the next seven months.

The remaining States and Union Territories would be covered in the next nine months. The entire project is expected to go live in the next 16 months.

The contract to ICICI Infotech was awarded after a tendering process in which a TCS-led consortium and a Wipro-led consortium also participated.

Announcing the appointment of ICICI Infotech as the managed service provider for TINXSYS, Mr Ramesh Chandra, Secretary, Empowered Committee of State Finance Ministers on VAT, made it clear that this project had nothing to do with the implementation of the proposed VAT system.

States are gearing up to implement a VAT regime that would replace the sales tax system from April 1, 2005.

"Whether there is VAT or no VAT, from April 1 next year, such an information exchange system is necessary for us. It would help in the verification and tracking of inter-State transactions and curtail the scope for tax evasion. One of the reasons for under development of the tax system is the absence of reliable data. TINXSYS would help in construction of a database and generate requisite MIS reports for participating States," Mr Chandra said.

He pointed out that many sales tax administrators are even today not very sure whether they are getting a "fair share" of what is due to them from inter-State transactions.

Mr Manoj Kunkalienkar, Executive Director and President, ICICI Infotech, told newspersons that the value of the project would be between $5-7 million.

He also said that Bharti, as a consortium partner, would provide networking component for the project.

"This project is very special for us as it is of national importance. Other than the agreed $5-7 million, there would be no other revenue stream for us. It is our vision that one day the system that we build would become a backbone for commercial taxes in India and integrate with various commercial systems across the country," Mr Kunkalienkar told Business Line here.

He also said that the proposed system is to be built on an open architecture and therefore can be adjusted to factor in future decisions relating to implementation of VAT and phasing out of central sales tax.

More Stories on : Taxation | E-Governance

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page



Stories in this Section
Manmohan, Bush express desire to strengthen ties


To ensure growth in harmony with nature — UNIDO proposes 4 basic principles
`Glocalisation can help preserve natural resources'
Canadian academy in talks with CII for policy initiatives
ONGC to hire 12 more survey vessels
NTPC issue price band set at Rs 52-62
No service tax for export cargo by aircraft operators
ICICI Info consortium bags VAT panel deal — For tax information exchange system
VAT compensation package: States may press for base year change
Ministry may revisit `irrecoverable taxes' issue with PSU refiners
SMB debt revamp: Chamber for I-T sops to lenders
CMERI bid to promote small, medium-scale industries
BPCL studying scope of leasing satellite for DTH
BCCI in talks with TWI for Australian tour of India
`10 lakh teachers needed for universal primary education'
Time-frame to reform grant-in-aid system planned in Karnataka
IIIE national convention at Thiruvananthapuram
Kalam to attend NAAC meet
Ceramic park near Vizag planned
Kerala industries dept clarifies GO on mineral sand mining
Private sand mining opposed in Kerala
Textile unions meet on tribunal issue
In Hyderabad today
India tops in US home textiles market
Lobbies at work to get customs duty on maize import cut
RBI winds up State-level export panel
Telugu film industry seeks people's help to fight piracy
Ayurveda majors plan common brand
AP Govt to organise tourism fests
Silk body plans new label



The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription
Group Sites: The Hindu | Business Line | Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |

Copyright 2004, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line