E-TRIP system: ACCI Punjab delegation meets FCT

Ludhiana, August 30, 2012: E-TRIP system is very disturbing to the industry and trade. It is a highly retrogative step.  Government is still dithering on this proposal even against the hue and cry from the business community. 

A delegation of Apex Chamber of Commerce and Industry (Punjab) led by P.D. Sharma, President met the Financial Commissioner Taxation today at Chandigarh in this regard.  The matter was discussed in detail.

It was explained to the Financial Commissioner Taxation that dispatch of goods from industry in particular is very sensitive and should have no control of the Taxation Department.  There are numerous reasons which can arise spontaneously and can cause delays and disruptions.

All over the world it is becoming a practice by the industry to keep the inventory as minimum as possible.  Stock of inventory increases the cost of production as it involves interest bearing capital.  World over interest rates are vey low and in our country they are 4-5 times higher than the average bank interest rate in the world.  So no industry can tolerate delay in the dispatch of goods.  A large section of Punjab’s industry works as vendors to major companies and if there are delays in the supply of goods from the vendors, the vendor will loose its customer.

Further, Sharma apprised FCT that it is a well known fact that servors of the computer oftenly remain down.  The power supply in Punjab is very irregular.  Thus, timely despatches are not possible and delays can be of any duration.  Computer culture has yet not developed in Punjab and disruptions are very much possible.

After e-billing tripping many contingencies can arise which may take long time to set them right?  This can violate the requirement of e-billing which will put the dealer in great trouble.

It is a common knowledge that computer hacking is on the increase.  Many frauds in the ATM’s are detected daily.  Cyber crimes are on the increase and the matching solutions to such crimes are lagging far behind.

Central Excise Department had control over the despatches of the industry long years back. As and now there is absolutely no control over the despatches.  State Government can certainly draw a lesson from the Central Excise Department in making the despatches free of control.

Financial Commissioner Taxation after hearing these difficulties asked the Chamber to send points of irritation to him for the re-consideration of the proposal.