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Impact Assessment of Commercial Taxes Computerization 2010

Assessment of Delivery of Key Services: The Citizens Perspective

Based on Survey of Dealers and Commercial Tax Practitioners in Five States of India

Commissioned by

Department of Information Technology Ministry of Communications and Information Technology Government of India

Copyright 2010 Department of Information Technology, Ministry of Communications and Information Technology

No part of this report may be reproduced in any publication or for any commercial purpose without prior permission from the copyright holders.

Department of Information Technology Ministry of Communications and Information Technology Electronics Niketan 6 CGO Complex, Lodhi Road New Delhi 110003 www.mit.gov.in

Indian Institute of Management Vastrapur, Ahmedabad

Printed by: Nutech Photolithographers Okhla Industrial Area, Phase-I, New Delhi-20

Project Team
Department of Information Technology
Mr. Abhishek Singh, Director, Department of Information Technology Mr. Anurag Goyal, Director, Department of Information Technology Ms. Vineeta Dixit, Principal Consultant, NeGP-Project Management Unit Ms. Sulakshana Bhattacharya, Consultant, NeGP-Project Management Unit Ms. Shiffy Varkey, Assistant Manager, NeGP-Project Management Unit

Indian Institute of Management, Ahmedabad


Prof. Subhash Bhatnagar, Study Coordinator Prof. T.P. Rama Rao Prof. Ankur Sarin Ms. Nupur Singh Mr. Anup Tripathi Ms. Anuradha Parekh Mr. Dheeraj Gupta

Acknowledgements
The team from IIMA would like to acknowledge the contribution of the Department of Information Technology (DIT), Government of India, which funded the study. Mr. Abhishek Singh, Director, DIT and Ms. Sulakshana Bhattacharya, Consultant, PMU were involved at different stages of the study. We are thankful to Mr. Anurag Goyal, Director, DIT, Ms. Vineeta Dixit, Principal Consultant, PMU and Ms. Shiffy Varkey, Assistant Manager, PMU for their contribution to this study.

Preface
The Government of India is keen to understand the nature and quantum of impact created by e-Governance projects that have been implemented by state and national agencies under the National e-Governance Plan (NeGP). The Department of Information Technology (DIT), Government of India as the nodal coordinating agency for the NeGP is directed to carry out an impact assessment study of mature state and national projects that have been implemented in India. The assessment is to focus on the nature and quantum of impact on users (citizens and businesses). Assessment of impact on other stakeholders such as the department implementing the project was not taken up. As a part of the rst phase of assessment studies, three state-level e-Government projects vehicle registration, property registration and land records were selected for assessment in twelve states across India. Three national-level projects implemented by the Income Tax department, the Ministry of Corporate Affairs (MCA), and the issue of passport by Regional Passport Ofces were also assessed in 2008. The report is available on the DIT website. Impact assessment of municipalities under the JnNURM e-Governance Project, Impact Assessment of the Commercial Taxes project in ve states and a Baseline Study of the e-District project were taken up in the current cycle of assessment studies. The Department of Information Technology (DIT) empanelled market research (MR) agencies for carrying out the eld work. Each agency was assigned the task of assessing the impact of the respective projects and preparing an individual report for each project. The Indian Institute of Management, Ahmedabad (IIMA) served as the technical advisor for the proposed study. A team from IIMA worked closely with the team from DIT in the implementation of the assessment study and provided feedback to the MR agencies at key points in the study. The eld survey of dealers and Commercial Tax Practitioners (CTP) in ve states was carried out by Research & Development Initiative Pvt. Ltd. This book consists of two parts PART I: Report prepared by IIMA and PART II: State reports by Research & Development Initiative Pvt. Ltd. The book is also available in the public domain on the DIT web site.

PART I

Report by Indian Institute of Management, Ahmedabad

Executive Summary
Assessment of Delivery of Key Services: The Citizens Perspective The report presents an overall view of the impact of varying degrees of computerization in the service delivery of Commercial Tax departments in ve states- Andhra Pradesh, Chhattisgarh, Gujarat, Rajasthan and Tamil Nadu from the perspective of the businesses (dealers) and their agents (Commercial Tax Practitioners) paying Commercial Taxes. This report is based on reports prepared by Market Research agencies that have examined the impacts at the state level using a common framework. Therefore, the information and analysis presented in this report is limited by the content of the state level reports. No new analysis has been conducted with the raw data for the purpose of this report. For the two main elements of cost-number of trips and waiting time, there does not seem to have been any real impact for ling returns across all states. However, there are clear benets in obtaining forms, obtaining information and paying taxes. Users using the online mode do not need to make any trips nor incur a waiting time, while they would have to make an average of at least one trip and wait for 30-60 minutes when using the manual mode. Whereas computerization has signicantly lowered bribery for getting statutory forms, in ling returns the impact is marginal. Overall, there is positive impact for obtaining forms and information but hardly any gains in the key activity of ling returns post computerization. Large dealers who were mandated to use online services have perceived an improvement, suggesting that the departments should enable a large proportion of dealers to access online services. Analysis of qualitative feedback from users suggests several areas of improvements in the current applications such as faster servers, improved design of online interface, more counters to minimize queues, and better trained staff. Corruption is seen to be the major problem. One way in which it can be minimized is to offer end-to-end online service. In the long run with the introduction of VAT, the systems have to be overhauled to offer end to end online services for every dealer. To cater to small dealers who may not have access to the Internet on their own, either cyber cafes have to be trained, licensed and incentivized to offer the services. In addition privately run facilitation centers dealing with only commercial tax application may be opened in larger towns. At the back-end complete work ow would have to be automated after streamlining the processes; revision of forms and review of requirement of supporting documents.

Abbreviations and Acronyms


AP CDSC CG CST CTD CTO CTP DIT G2B G2C G2G GJ IIMA IT MR Agencies NeGP NIC NMMP PMU RDI RFP RJ TINXSYS TN VAT Andhra Pradesh Centralized Dealer Service Centre Chhattisgarh Central Sales Tax Commercial Tax Department Chief Technology Ofcer Commercial Tax practitioners Department of Information Technology Government to Business Government to Citizen Government to Government Gujarat Indian Institute of Management, Ahmedabad Information Technology Market Research Agencies National e-Governance Plan National Informatics Centre National Mission Mode Programme Program Management Unit Research and Development Initiative Pvt Ltd Request for Proposal Rajasthan Tax Information Exchange System Tamil Nadu Value Added Tax

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Table of Contents
Acknowledgement ..............................................................................................................................4 Abbreviations and Acronyms............................................................................................................11 Preamble ...........................................................................................................................................15 1.0 Role of IIMA in the Assessment Study ......................................................................................17 2.0 Status of Computerization of Commercial Tax Ofces Assessed in the Study .........................18 2.1 Brief Description of the Commercial Taxes Project .........................................................18 3.0 Research Methodology ..............................................................................................................19 3.1 Counterfactual ....................................................................................................................19 3.2 Measurement Framework ...................................................................................................21 3.3 Sampling Methodology and Sample Size...........................................................................22 3.4 Prole of Respondents ........................................................................................................23 4.0 Analysis of Survey Data.............................................................................................................23 5.0 Cost Element Wise Impact .........................................................................................................24 5.1 Number of Trips..................................................................................................................24 5.2 Waiting Time (In Minutes) .................................................................................................25 5.3 Reasons for Delay in Obtaining Forms ..............................................................................26 5.4 Proportion Paying Bribe (%) ..............................................................................................28 5.5 Overall Experience of Availing Service from CTD............................................................29 5.6 Overall Quality ...................................................................................................................30 5.7 Overall Governance ............................................................................................................31 6.0 Service Wise Impact ................................................................................................................32 6.1 Obtaining Forms .................................................................................................................32 6.2 Filing of Returns .................................................................................................................33 7.0 Analysis of Qualitative Feedback from Users ...........................................................................34 7.1 Major reasons for using Online Services ............................................................................35 8.0 Recommendations for Improving Online Services ...................................................................37 8.1 Filing Returns .....................................................................................................................37 8.2 Obtaining Statutory Forms .................................................................................................37 8.3 Tax Payment .......................................................................................................................38 8.4 Awareness Campaign ..........................................................................................................38

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List of Tables
Table 1: Services Targeted ................................................................................................................18 Table 2: List of Services Offered by Different States and Mode of Delivery...................................19 Table 3: Services Analyzed and Counterfactual Used ......................................................................20 Table 4: Framework of the Study......................................................................................................21 Table 5: Sample Description .............................................................................................................22 Table 6: Sampling Units and Sample Sizes (Dealer) ........................................................................23 Table 7: Major Suggestions for Improving Online Services ............................................................34 Table 8: Major Suggestions to Increase Use of e-Service ................................................................35 Table 9: Major Reasons Given by Dealers & CTPs for Using Online Services (% of Respondents) .............................................................................................................35 Table 10: Reasons for Dependence on CTPs (%) ...........................................................................35 Table 11: Attributes Considered Important by Dealers (by % of Responses)...................................36 Table 12: Attributes Considered Important By CTPs (by % of Responses) ....................................36

List of Figures
Figure 1: Number of Trips ................................................................................................................25 Figure 2: Waiting Time (in Minutes) ................................................................................................26 Figure 3: Elapsed Time (in Hours)....................................................................................................27 Figure 4: Proportion Paying Bribes (%) ...........................................................................................29 Figure 5: Overall Experience ............................................................................................................30 Figure 6: Overall Quality ..................................................................................................................30 Figure 7: Overall Governance ...........................................................................................................31 Figure 8: Obtaining Forms (CST and VAT Forms) ...........................................................................32 Figure 9: Filing of Returns................................................................................................................33

List of Annexure
Annexure 1 : Service Delivery Process ............................................................................................39 Annexure 2 : Outline of the Survey Instrument ................................................................................41 Annexure 3 : Prole of Dealers and CTPs ........................................................................................42 Annexure 4 : Reasons for Execessive Wait.......................................................................................44

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Impact Assessment of Commercial Taxes Computerization 2010

Preamble
In view of the proposed roll out of the ambitious National e-Governance Program (NeGP), the Government of India was keen to understand the nature and quantum of impact created by e-government projects that had already been implemented by local, state and national Government agencies. In the rst phase of the assessment program initiated in 2008, the Department of Information Technology (DIT) had commissioned impact assessment studies of nearly forty mature e-Governance projects implemented by state and central agencies. Reports analyzing the impact on the basis of these studies were put out in the public domain. These reports were also discussed in workshops organized by IIM Ahmedabad in November 2009 in which many of the representatives of the agencies which were assessed had participated. These workshops provided a forum for discussing the validity of the results and also provided inputs for improving the conceptualization and design of new projects. For the second phase of assessment initiated in 2009, the Indian Institute of Management, Ahmedabad (IIMA) was contracted by the Department of IT, Government of India to become a Knowledge Partner. Projects covering four ULBs; collection of commercial taxes in ten states and a baseline survey for e-district program in ve states were taken up in the 2nd phase. Commercial Taxes constitute around 70 percent of total revenues for states and union territories. The National e-governance Plan (NeGP), Government of India includes a Commercial Taxes Mission Mode Program (CT-MMP) for Commercial Tax Departments. The CT-MMP aims to ensure standardization across states in their implementation of Value Added Taxes (VAT) as well as providing improved services to citizens. The report presents the assessment of impact of varying degrees of computerization in the service delivery of Commercial Tax Departments in 5 states- Andhra Pradesh, Chhattisgarh, Gujarat, Rajasthan, Tamil Nadu from the perspective of the businesses paying Commercial Taxes. The report identies areas of improvement which can be targeted when further computerization is undertaken by the agencies covered in the report. This report is not intended to provide a template for redesign of the applications. A detailed study of the agency has to be undertaken to propose such a template. The report submitted by the Market Research agencies provides more details on assessment of the department in the ve states.

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Impact Assessment of Commercial Taxes Computerization 2010

1.0 Role of IIMA in the Assessment Study


In its advisory role, IIMA was involved in providing inputs to the DIT and the Market Research agencies over the entire life cycle of the study. IIMAs effort was directed at ensuring that a consistent framework was used across the states; the MR agency understood the renements to the assessment framework made for the 2nd phase; good quality data was collected; impact could be estimated accurately; results could be projected to the entire population; results could be compared across different states; and overall conclusions could be drawn on the impact of e-Governance. The following inputs were provided in the key stages of the study: IIMA provided a framework for assessment covering the key dimensions on which impact on citizens (users of a service) was to be measured. The framework was similar to the one used in Phase I studies. The scope of the study was marginally widened to get an understanding of the reasons why clients made each trip (in case a number of trips were made); or paid bribes or used agents. The MR agencies were left free to add any items beyond those specied in the framework in designing the survey instrument. The MR agency was asked to submit a proposal for the study of the states based on the proposed framework. The proposal was discussed in a meeting held in IIMA which was attended by representatives of DIT, IIMA team and the MR Agency team. The IIMA team provided feedback on the proposal including the survey instrument for each state to ensure that the survey complied with the proposed framework. IIMA framed a set of guidelines for the sampling methodology to be used by the MR agencies to determine a sampling plan and the sample size. Design of a sampling plan and sample size was reviewed by the IIMA team and feedback was provided on selection of locations from where respondents were to be selected. Templates were provided for analysis of data to ensure that for each project the key impacts were reported. Formats for a set of tables were provided for reporting data on impact with the associated levels of signicance. Tables were also specied to ascertain adherence to the proposed sampling plan and to assess the response rate. Agencies were asked to report on data quality by performing analysis to check internal consistency of results. Feedback was provided in several rounds on the tables for correctness of computation, and unacceptable in level of accuracy. A format was provided for the reports to be submitted by the agency, outlining different sections that were to be included. Agencies were free to include any additional material that advanced the understanding of the extent of impact or the reasons for a certain kind of impact. Feedback was provided on the report. On the basis of the MR agency reports IIMA has compiled this report to highlight service wise and cost-element wise impact of computerization in 5 states and provided some learnings for further computerization.

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Impact Assessment of Commercial Taxes Computerization 2010

2.0 Status of Computerization of Commercial Tax Ofces Assessed in the Study


2.1 Brief Description of the Commercial Taxes Project Commercial Taxes Mission Mode Program (CT-MMP) has been adopted with the twin goal of ensuring standardization across states in their implementation of Value Added Taxes (VAT) as well as providing improved services to citizens. The initiative is led by the Department of Revenue, Ministry of Finance, Government of India (GoI) and the CT-MMP was conceived by GoI under the National e-Governance Plan (NeGP). Commercial taxes typically account for nearly 60 to 70 percent of total state revenues and hence of critical importance to states and union territories. Among the services provided by the State Commercial Tax Departments, Table 1 describes the services that were targeted by the CT-MMP with appropriate e-Governance initiatives.
Table 1: Services Targeted1 Service Registration of dealers e-Governance Initiatives under CT-MMP Online application for registration Online dealer verication Online dealer ledger (?Should this be here?) Collection of returns Collection of taxes Provision of refunds Tax accounting services Issue of forms pertaining to inter-state trade Online issuance of CST statutory forms through Tax Information Exchange System (TINXSYS) Information services, taxpayer education and guidance Facility to dealer to obtain various online information services Online ling of returns Online payment of tax Electronic clearance of refunds

Annexure 1 provides a brief description of procedures for availing different services in the manual and

the computerized system. The states that were covered in this study included Andhra Pradesh, Chhattisgarh, Gujarat, Rajasthan, and Tamil Nadu. Different states have moved at different pace with the provision of services via e-government initiatives. Table 2 provides information on the list of services offered by the Commercial Tax Departments of different states at the time of evaluation and whether or not the service was provided only via a computerized interface or if users had the option of choosing between a manual and computerized interface.
__________
1

Adapted from Commercial Taxes: Mission Mode Program (CT MMP), Roadmap for the Commercial Taxes Mission Mode Program Department of Revenue, Ministry of Finance, Government of India, December 2006

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Impact Assessment of Commercial Taxes Computerization 2010

Table 2: List of Services Offered by Different States and Mode of Delivery Name of Service Registration Filing of returns Andhra Pradesh Computerized and Manual Computerized and Manual Payment Manual Computerized and Manual Computerized and Manual Communication/ Information Dissemination Refund Manual Manual Computerized Computerized and Manual e-submission of declaration form Issue of Forms4 Computerized Computerized Computerized Not Offered Not Offered Not Offered Computerized and Manual Computerized Computerized and Manual Computerized and Manual Not Offered Computerized Computerized Computerized and Manual
2

Chhattisgarh Manual

Gujarat Computerized

Rajasthan Computerized and Manual Computerized and Manual Computerized and Manual Computerized and Manual

Tamil Nadu Computerized and Manual Computerized and Manual 3 Computerized and manual Computerized and Manual

Computerized and Manual Computerized and Manual

3.0 Research Methodology


The study focuses on understanding and analyzing the experiences of end users of the Commercial Tax Departments, since one of the primary goals of the NeGP is to emphasize the citizen-centricity of services provided by government departments. The survey covered both Dealers as well as Commercial Tax Practitioners (CTP). Dealer refers to a business that pays taxes and les returns, statements and appeals on its own behalf i.e. the end user. CTP refers to commercial tax practitioners who do these activities on behalf of dealers (businesses) for a payment or retainer-ship from dealers. They are essentially intermediaries who have purposefully been included in the sample since a majority of dealers use their services to partly or completely perform the above activities (This was discovered during pretesting). The results presented below are both dealers and CTPs separately. However, one needs to be cautious in the latter case since the sample sizes were not determined to get sub-sample estimates with a high level of precision. 3.1 Counterfactual Since the goal of the study was to assess the impact of the e-governance initiatives, it was important for the study to understand what would have happened had e-governance initiatives not been implemented i.e. to have a counterfactual with which to compare the experiences of those who have availed services related to the CT-MMP. The experiences are dependent not only on the service providers
__________ 2 E-returns is mandatory for dealers with annual turnover of more than one crore. However, this service was considered optional because there are a large number of dealers who have turnover below one crore. 3 4

E-returns is mandatory for 100% Input Tax Credit dealers or dealers with annual turnover of more than one crore All forms of VAT are available online they can only be obtained online. However, in case of CST, forms are not available online

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Impact Assessment of Commercial Taxes Computerization 2010

but also on the users themselves their needs, their ability to negotiate the systems, educational background etc. The ideal counterfactual is of users who can report on their recent experience of both computerized delivery and non-computerized delivery for the same service. In a situation where mature projects (running for 2-3 years) are assessed, this condition will not always be met. Therefore the best alternative is to have a separate group of users of computerized and users of manual service who are similar in every respect except usage of computerized services. In the case of the evaluation of CT-MMP, random assignment was not feasible. Hence the study compares the experiences of users with non-users for services where users still have a choice between computerized and manual services. In cases where services are only delivered in the computerized mode, users were asked to recall their experiences under the manual system and compare it to the current computerized system.
Table 3 provides information on the services that were analyzed and the counterfactual used in each case. Two services that were most commonly used and offered in the computerized mode across all states are ling of returns and obtaining statutory forms.

1. Filing tax returns: The impact on ling returns has been assessed in all states. In all of them, the impact of ling tax returns has been measured by the difference between online and manual users. The only exception is Tamil Nadu, where online users were asked to recall their experience with the manual system. 2. Obtaining statutory form: The impact on users obtaining forms from the CTD was analyzed for all states, except Tamil Nadu and Chhattisgarh5. Except Andhra Pradesh, where forms can be obtained both in the manual and computerized modes and hence users of both models were interviewed,
Table 3: Services Analyzed and Counterfactual Used State Rajasthan Service Analyzed Filing Returns Obtaining VAT Forms Chhattisgarh Filing Returns Tax payment Gujarat Filing Returns Obtaining Statutory Forms Andhra Pradesh Filing Returns Obtaining Statutory Forms Tamil Nadu Filing Returns Tax payment Obtaining Information Counterfactual Manual and online users were interviewed (treatment and comparison groups) Recall method Manual and online users were interviewed (treatment and comparison groups) Manual and online users were interviewed (treatment and comparison groups) Manual and online users were interviewed (treatment and comparison groups) Recall method Manual and online users were interviewed (treatment and comparison groups) Manual and online users were interviewed (treatment and comparison groups) Recall method

__________ 5

e-return is the only major online service in Tamil Nadu in July 2009 and in case of Chhattisgarh the mode of operation is manual till 11 August 2009

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Impact Assessment of Commercial Taxes Computerization 2010

3.2 Measurement Framework The end users of commercial tax services were asked to evaluate their experiences on a range of dimensions in addition to sharing background information on themselves. The framework (Table 4) is similar to that used in the rst phase of assessment studies, and has been tested in an earlier assessment studies of eight projects encompassing service delivery to citizens (G2C), businesses (G2B) and internal staff (G2G) in three states (Andhra Pradesh, Karnataka and Gujarat). The study was carried out by a team from IIMA and was sponsored by the World Bank, DIT and IIMA.
Table 4: Framework of the Study Cost of Availing Service Measured Directly Number of trips made for the service Average travel cost of making each trip Average waiting time in each trip Estimate of wage loss due to time spent in availing the service Total time elapsed in availing service Amount paid as bribe to functionaries Amount paid to agents to facilitate service

Overall Assessment Preference for manual versus computerized systems Composite score: Measured on a 5-point scale factoring in the key attributes of a delivery system that are seen as being important by users Quality of Service: Interaction with staff, complaint handling, privacy, accuracy measured on a 5-point scale Satisfaction with the location of the service delivery center/ofce Convenience of working hours of the service delivery center/ofce Overall attitude of the functionaries in terms of courteousness and friendliness Timeliness of response to queries by clients Satisfaction with the mechanism for complaint handling and problem resolution Perception about the condentiality and security of data Satisfaction with the overall quality of service

Quality of Governance: Transparency, participation, accountability, corruption measured on a 5-point scale Level of corruption in the current working system Awareness about the citizen charter Adherence of the time frame for service delivery (elapsed time) to that specied in citizens charter Financial loss due to delay in availing the service Type/kind of nancial loss incurred due to delay in availing the service Extent to which government ofcials can be held accountable for their actions Whether the rules and procedures are simple and stated clearly Whether the agency takes responsibility for the information shared Does the agency provide any feedback and what is the quality of response to queries? Perception about the overall quality of governance

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Impact Assessment of Commercial Taxes Computerization 2010

A outline of the survey instrument (see Annexure 2) that incorporated the key dimensions in the measurement framework was prepared. The instrument was adapted to distinguish between services that are compulsorily offered only through the computerized mode and those where users can choose between the manual and computerized mode. In particular, information was collected on all elements that dene the cost (including time cost) of accessing a popular service such as ling returns that can be accessed both via the online and manual mode to compare the two modes in details. The elements included man-hours spent in completing forms and preparing supporting documents, data entry, trips made, service charges, bribery and use of intermediaries. 3.3 Sampling Methodology and Sample Size The sample size was restricted to 800 interviews for each of the states. As mentioned earlier, the sample was divided almost equally between users of computerized services and non-users of computerized services in states where all the evaluated services were being delivered by both modes. In states where one of the evaluated services was only being offered in the computerized mode (referred to as mandatory services) while the other service was being offered in both modes, the sample was further sub-divided based on activity levels . See Table 5 below
Table 5: Sample Description State Andhra Pradesh Details of Users Dealers CTP Chhattisgarh Gujarat (Optional Online Services) Gujarat (Mandatory Online Services) Rajasthan (Optional Online Services) Rajasthan (Mandatory Online Services) Tamil nadu6 Dealers CTP Dealers CTP
Dealers

Computerized 309 101 303 111 196 74 192 74 253 76 97 52 603 198

Manual 301 102 302 90 195 74 0 0 250 77 0 0 NA NA

Total 610 203 605 201 391 148 192 74 503 153 97 52 603 198

CTP Dealers CTP


Dealers

CTP Dealers CTP

The sampling strategy, described in greater detail in Table 6 was chosen to make the sample as representative of the population as possible within the constraints of budget and information available.
_________________ 6

Tamil Nadu is the only exception where online users were asked to recall their experience with the manual system

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Impact Assessment of Commercial Taxes Computerization 2010

Table 6: Sampling Units and Sample Sizes (Dealer)


State Selected Division Punjagutta Secunderabad Andhra Pradesh Abids Vijayawada-ii Charminar Visakhapatnam Raipur Chattishgarh Bilaspur Durg Jaipur-II Rajasthan Kota Bikaner Udaipur Coimbatore Tamil Nadu Tirunelveli Chennai East Vellore Sample Size 38 12 11 17 24 15 36 24 34 56 19 12 12 38 26 32 12

3.4 Prole of Respondents Some attributes indicating the prole of respondents are presented in Annexure 3. The majority of dealers in the same were proprietors doing wholesale business. With the exception of those in Chhattisgarh, most used the computerized mode for maintenance of books and accounts. The CTPs in the sample were largely a mix of CAs and holders of a LLB degree and typically had between six to ten years of experience in the eld. A majority of the CTPs worked in organizations with at least two other employees. Not surprisingly a small proportion of CTPs using the manual mode of service delivery had experience with the online mode across the states. But the reason for this is unlikely to be lack of computer literacy as even CTPs using the manual mode of service delivery reported a high degree of computer literacy.

4.0 Analysis of Survey Data


The MR agency submitted a report providing an assessment of the citizen impact on the following dimensions for each of the ve states for key services offered by them: Factors contributing to cost of access (number of trips needed, waiting time, travel costs, payment of bribes) Elapsed time (total time taken for receipt of nal document) Quality of service assessed along attributes such as responsiveness of staff, convenience of location of ofce and work timings, and facilities at the service center.

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Impact Assessment of Commercial Taxes Computerization 2010

Quality of governance assessed on attributes such as transparency, reduced corruption, fairness of treatment, quality of feedback and level of accountability. Overall impact measure (preference between manual and computerized systems) A single composite rating on a ve point scale of improvements perceived after computerization. Respondents were asked to rate the improvements on a common set of twenty attributes covering cost of access, convenience, quality of delivery, and quality of governance. For each project the respondents were also asked to select the three most desirable attributes. Based on the responses on desirability, a weighting scheme was generated for each of the twenty attributes reecting the importance of the attribute. Using the weighting scheme and the responses on a 5-point scale, a single composite score for improvement was generated. Using the analysis provided in the MR agency report, the following sections present a comparative picture of the performance of the ve states in two ways:

1. Cost element-wise impact: An aggregate picture of overall impact for a given project covering all dimensions across all states. 2. Service-wise impact: Variation across states of the impact on each of the above dimensions for a given service.

5.0 Cost Element Wise Impact


5.1 Number of Trips Figure 1 presents the number of trips averaged over all the users for a service in a particular state. Only one trip was made on average for ling returns in Andhra Pradesh, Chhattisgarh and Tamil Nadu by users in both the computerized and manual modes. While users in Gujarat and Rajasthan reported a slightly higher number of trips in the manual mode, this remained true even with the online mode. Therefore, there does not seem to have been any real impact on the number of trips that users need to make for ling returns across all states. And this is true even for Gujarat where there was clear scope for improvement. However, there are clear benets in obtaining forms, obtaining information and paying taxes. Users using the online mode do not need to make any trips when availing these services, while they would have to make an average of at least one trip (and even more in Gujarat and Rajasthan) when using the manual mode.

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Impact Assessment of Commercial Taxes Computerization 2010

Figure 1: Number of Trips7

1.6 1.4 1.2 1 0.8 0.6 0.4 0.2 0 AP GJ(M) RJ(M) AP CG

Dealer

GJ(O) Filing Returns

RJ(O)

TN

CG

TN

TN

Obtaining Forms

Tax Payment Infromation

1.6 1.4 1.2 1 0.8 0.6 0.4 0.2 0


AP GJ(M) Obtaining Forms RJ(M) AP

CTP

CG

GJ(O) Filing Returns

RJ(O)

TN

CG

TN

Tax Payment Infromation

Manual

Computerized

5.2 Waiting Time (In Minutes)


Figure 2 presents the average waiting time in minutes for each trip made for the service. When ling returns, the waiting times were relatively lower in Andhra Pradesh and Chhattisgarh even in the manual mode and have remained so in the online mode with little difference in the waiting time. The exception is CTPs in AP who report a decrease in 10 minutes in waiting time on average. There appears to have been little or no impact in Gujarat and Rajasthan, with the average waiting time actually increasingly slightly for CTPs in Gujarat. The only state where a perceptible impact has been experienced by users is Tamil Nadu. Dealers in TN report that they had to wait on average for more than hour when trying 0 fail returns in the manual model. In contrast, the waiting time has fallen to less than 40 minutes in the online mode a wait quite comparable to the better performing states AP and CG. The impact reported by dealers is also corroborated by CTPs who also report a decrease in waiting time of around 20 minutes in TN when ling returns.

Since the other services did not require any trips in the online mode, the dimension of waiting
_______________ 7

In few services since the values for the computerized mode is 0 , there is no red bar. This implies to gure (1 to 9). The colored bars in all the gures (1 to 9) represent the values of manual and computerized system.

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Impact Assessment of Commercial Taxes Computerization 2010

time was not applicable in the online mode. For detailed tables on reasons for excessive wait see Annexure 4 .
Figure 2: Waiting Time (in Minutes)
Dealer
80 70 60 50 40 30 20 10 0 AP GJ(M) RJ(M) AP CG GJ(O) RJ(O) TN CG TN TN Infromation

(in minutes)

Obtaining Forms

Filing Returns

Tax Payment

Manual

Computerized

(in minutes)

80 70 60 50 40 30 20 10
0 AP GJ(M) RJ(M) AP CG

CTP

GJ(O) Filing Returns

RJ(O)

TN

Obtaining Forms

CG Tax Payment

TN Infromation

Figure 3 presents the elapsed time between application for a service and its nal delivery. The impact

on elapsed time varies widely between states and services. While there has been a decrease in the time that elapses between the request for service and the actual delivery for some services, there also has been an increase in others. For example, when ling taxes, the percentage reduction in elapsed time for dealers varies from 17 percent in Gujarat to 36 percent in Rajasthan and Tamil Nadu. In contrast, CTPs report an increase in elapsed time for even Gujarat and Rajasthan in ling returns. The elapsed time in Andhra Pradesh appears to have increased across all services and for both dealers and CTPs. Similarly both dealers and CTPs in Gujarat report nearly a doubling of elapsed time when trying to obtain forms. Tamil Nadu is the only state in which the impact is unambiguously positive across services and type of users. 5.3 Reasons for Delay in Obtaining Forms The time taken to obtain forms has increased markedly in Gujarat and Andhra Pradesh. According to interviews done by the MR agency, the primary reason for the increase in elapsed time for obtaining

26

Impact Assessment of Commercial Taxes Computerization 2010

forms in Gujarat has largely been because of incorrect addresses of dealers in the CTD database (since they are not updated regularly). This creates a delay when statutory forms are sent through courier service after the CTD has received the application from the user. Further, some users have also felt that ofcials often delay in processing online applications. A possible explanation is that in the manual mode they would visit the CTD ofce to obtain forms and in the process often pay bribes to expedite the process a practice that is not followed now. Similarly in Andhra Pradesh, the delays are attributed to the time taken for the forms to reach by courier. In particular, many users felt that the delays resulted from the practice of dispatching statutory forms only from Hyderabad. As a result, there is signicant difference among divisions in terms of number of days taken to obtain statutory forms. For examples, while dealers/CTPs in Divisions in and around Hyderabad received statutory forms within 23 days (mean), those in divisions such as Vijayawada and Visakhapatnam received it much later: 67 days. As an aside, it would be interesting to probe how elapsed times in Rajasthan have decreased. Although the MR agency reports that the reduction is because users no longer need to visit the CTD ofce, it is unclear whether the time taken in transit by courier has been properly accounted for.
Figure 3: Elapsed Time (in Hours)
3.5 3 2.5

Dealer

(in hours)

2 1.5 1 0.5 0 AP CG GJ(O) Filing Returns RJ(O) TN CG TN TN Infromation

Tax Payment

Manual

Computerized

400 350 300 250 200 150 100 50 0

Elapsed Time (In hours)


337.66

(in hours)

147.83 76.6146 1.0946 AP GJ(M) Obtaining Forms 16.261 1.287

RJ(M)

27

Impact Assessment of Commercial Taxes Computerization 2010

7 6 5

CTP

(in hours)

4 3 2 1 0 AP CG GJ(O) Filing Returns RJ(O) TN CG TN Tax Payment TN Infromation

Manual

Computerized

400 350 300 250 200 150 100 50 0

Elapsed Time (In hours)


375.95

(in hours)

88.6123 1.1353 AP

147.11 12.5194 0.6721 GJ(M) Obtaining Forms RJ(M)

5.4 Proportion Paying Bribe (%)


Payment of bribes appears to obtain forms appears to have been fairly prevalent in Gujarat and Rajasthan, more so in the former. Nearly 40 percent of dealers and 27 percent of surveyed CTPs in Gujarat admit to having paid bribes in the manual system. The proportion is similar among CTPs in Rajasthan, but much lower (16 percent) among dealers. In both these states the only ones where payment of bribers was relatively common in the manual system, computerization seems to have resulted in a signicant lowering of bribes when obtaining statutory forms. However, the impact is no where as pronounced when ling returns. (See Figure 4). Interestingly, while expediting the process remains the primary reason why users pay bribes, it has become far less important in the computerized system relative to the manual system. Instead the attempt to inuence functionaries, to manipulate records in the users favour or avoid being audited by the CTD have become relatively more important.

28

Impact Assessment of Commercial Taxes Computerization 2010

Figure 4: Proportion Paying Bribes (%)


45.00% 40.00% 35.00% 30.00% 25.00% 20.00% 15.00% 10.00% 5.00% 0.00% GJ(M) RJ(M) GJ(O) Filing Returns RJ(O)

Dealer

Obtaining Forms

Manual
30.00% 25.00% 20.00% 15.00% 10.00% 5.00% 0.00% AP GJ(M) Obtaining Forms RJ(M)

Computerized

CTP

AP

GJ(O) Filing Returns

RJ(O)

5.5 Overall Experience of availing service from CTD While the reported improvement in overall experience is low across states, it is higher in states that performed relatively poorer in the manual mode. Users in Gujarat report the highest impact in overall experience despite the increases in elapsed time when ling returns. This can perhaps be understood as an expression of relief that users experienced from not having to deal with a poorly performing manual system when dealing with other services. (Figure 5)

29

Impact Assessment of Commercial Taxes Computerization 2010

Figure 5: Overall Experience

4.5 4 3.5 3 2.5 2 1.5 1 0.5 0 AP CG GJ(O)

Dealer

GJ(M)

RJ(O)

RJ(M)

TN

Manual
4.5 4 3.5 3 2.5 2 1.5 1 0.5 0
AP CG GJ(O)

Computerized

CTP

GJ(M)

RJ(O)

RJ(M)

TN

5.6 Overall Quality The impacts on overall quality largely mirror those of overall experience. (Figure 6)
Figure 6: Overall Quality
Dealer

4.5 4 3.5 3 2.5 2 1.5 1 0.5 0

AP

CG

GJ(O)

GJ(M)

RJ(O)

RJ(M)

TN

30

Impact Assessment of Commercial Taxes Computerization 2010

Manual

Computerized

4.5 4 3.5 3 2.5 2 1.5 1 0.5 0

CTP

AP

CG

GJ(O)

GJ(M)

RJ(O)

RJ(M)

TN

5.7 Overall Governance The impacts on overall quality largely mirror those of overall experience. (Figure 7)
Figure 7: Overall Governance
4.5 4 3.5 3 2.5 2 1.5 1 0.5 0

Dealer

AP

CG

GJ(O)

GJ(M)

RJ(O)

RJ(M)

TN

4.5 4 3.5 3 2.5 2 1.5 1 0.5 0

CTP

AP

CG

GJ(O)

GJ(M)

RJ(O)

RJ(M)

TN

31

Impact Assessment of Commercial Taxes Computerization 2010

6.0 Service Wise Impact


6.1 Obtaining Forms The impact of computerization has been felt most by users trying to obtain forms. Users do not have to make any trips across the three states that offer this service via the computerized mode, and although this seems to have resulted in an increase in elapsed time they seem willing to take this tradeoff as reported above by the largely positive impacts in the overall experience and quality. Further computerization seems to have markedly reduced corruption in Gujarat as far as Obtaining Forms is concerned, where nearly 40 percent of dealers and 25 percent of CTPs report paying bribes when using in the manual mode but not doing so in the computerized mode. (See Figure 8 below)
Figure 8: Obtaining Forms (CST And VAT Forms)9 Dealer
1.4 1.2 1 8 6 4 2 0 AP GJ(M) Obtaining Forms RJ(M)

Number of Trips

(in minutes)

70 60 50 40 30 20 10 0 AP

Waiting Time (in minutes)

GJ(M) Obtaining Forms

RJ(M)

400 350 300

Elapsed Time (in hours)


337.66

45.00% 40.00% 35.00% 30.00% 25.00%

Proportion Paying Bribes (%)

(in hours)

250 200 100 50 0


76.6146 1.0946

147.83 16.261

20.00% 15.00%

1.287

10.00% 5.00% 0.00%

AP

GJ(M) Obtaining Forms

RJ(M)

GJ(M) Obtaining Forms

RJ(M)

CTP
1.6 1.4 1.2 1 8 6 4 2 0 AP

Number of Trips

80 70 60 50 40 30 20 10 0

Waiting Time (in minutes)

(in minutes)

GJ(M) Obtaining Forms

RJ(M)

AP

GJ(M) Obtaining Forms

RJ(M)

400 350 300 250 200 150 100

Elapsed Time (in hours)


375.95

30.00% 25.00% 20.00%

Proportion Paying Bribes (%)

(in hours)

147.11 88.6123 1.1353 12.5194 0.6721

15.00% 10.00% 5.00% 0.00%

50 0

AP

GJ(M) Obtaining Forms

RJ(M)

AP

GJ(M) Obtaining Forms

RJ(M)

______ 9

In Andhra Pradesh Way Bills, which are used by both VAT and CST dealers, are also delivered through CDSC. Therefore dealers who are registered only for VAT (and not for CST) have also availed this service.

32

Impact Assessment of Commercial Taxes Computerization 2010

6.2 Filing of Returns With the exception of Tamil Nadu, computerization seems to have had little impact on users experience when ling returns. In Tamil Nadu both waiting time and elapsed time have noticeably decreased for both CTPs and dealers. While dealers in Rajasthan report a drop in elapsed time, CTPs actually report an increase. (Figure 9) Further corruption still remains an issue for users in Gujarat with nearly 15 percent of dealers reporting payment of bribes a number not very different from the manual mode. Similarly in Rajasthan nearly 20 percent of online and manual CTP users report payment of bribes when ling returns. There are surprisingly no reports of corruption from other states, except a very small proportion by CTPs in Andhra Pradesh.
Figure 9: Filing of Returns
Dealer
1.6 1.4 1.2

Number of Trips

Waiting Time (in minutes)


80 70 60

(in hours)
AP CG GJ(O) Filing Returns
3.5 3 2.5

1 0.8 0.6 0.4 0.2 0

50 40 30 20 10 0

RJ(O)

TN

AP

CG

GJ(O) Filing Returns

RJ(O)

TN

Elapsed Time (in hours)

20.00% 18.00% 16.00% 14.00% 12.00% 10.00% 8.00% 6.00% 4.00% 2.00% 0.00%

Proportion Paying Bribes (%)

(in hours)

2 1.5 1 0.5 0

AP

CG

GJ(O) Filing Returns

RJ(O)

TN

GJ(O) Filing Returns

RJ(O)

CTP
1.6 1.4 1.2 1 0.8 0.6 0.4 0.2 0

Number of Trips

70 60 50 40 30 20 10 0

Waiting Time (in minutes)

(in hours)

AP

CG

GJ(O) Filing Returns

RJ(O)

TN

AP

CG

GJ(O) Filing Returns

RJ(O)

TN

7 6 5

Elapsed Time (in hours)


25.00% 20.00% 15.00% 10.00% 5.00% 0.00%

Proportion Paying Bribes (%)

(in hours)

4 3 2 1 0

AP

CG

GJ(O) Filing Returns

RJ(O)

TN

AP

GJ(O) Filing Returns

RJ(O)

33
____________________

Impact Assessment of Commercial Taxes Computerization 2010

7.0Analysis of Qualitative Feedback from Users


Table 7 below lists some suggestions for improving online services. These suggestions cover improvements in hardware, improved application software design, better training of staff and process reforms. Table 8 lists some suggestions for increasing the uptake of e-services. Table 9 provides a list of reasons cited by the users of online services for why they preferred to go online. Annexure 4 lists the main reasons cited by users who had either to make extra trips or wait long in the department ofces. The reasons relate to adequate processing capacity in the department resulting in long queues. More counters, better training, improved technology, increasing productivity would help in reducing queues. A large proportion of dealers use CTPs as agents to deal with the Commercial Tax Department on their behalf. Normally, one of the objectives of an e-governance application is to simplify a service delivery process so that users can directly access services without having to use intermediaries. Table 10 lists the major reasons cited by dealers for using intermediaries. Except for the last reason of not wanting to spend effort themselves, other reasons have to do with the complexity of procedures or lack of awareness about procedures-areas that can be improved. Tables 11 and 12 provide a list of attributes of a service delivery system that were seen to be important by dealers and CTPs in the 5 states. Two attributes where improvement is sought in most states are the level of corruption and knowledge levels of the staff. Corruption can be minimized by an end-to-end online delivery in which the unnecessary discretion available to ofcials is minimized.
Table 7: Major Suggestions For Improving Online Services
Suggestions Eliminate practice of submission of hard copy to CTD (w.r.t e-ling) Server speed should be increased CTD ofcials should be given adequate training, so that they can handle queries on online services efciently Provide templates (w.r.t. returns) that can perform data verication ofine Changes in processes/templates should be immediately communicated to users Involve more banks in E-payment Provide templates (w.r.t. returns) that can perform data verication ofine Tax consultants should be allowed to make E-payment on behalf of their clients through Consultants Internet Banking A/C (dealers do not want to give CTPs access to their accounts) Maintenance of website should not be done during ofce hour Andhra Pradesh Chhattisgarh Gujarat Rajasthan Tamil Nadu

34

Impact Assessment of Commercial Taxes Computerization 2010

Table 8: Major Suggestions to Increase Use of e-Service


Suggestions Awareness campaigns on online services for users Establishment of common service centres to facilitate e-services to all Online processes should be made much more user friendly & simple Andhra Pradesh Chhattisgarh Gujarat Rajasthan Tamil Nadu

Other Suggestions All forms, including CST Forms, should be provided online Local language interface needed for online services

7.1 Major reasons for using Online Services


Table 9 : Major Reasons Given by Dealers & CTPs for Using Online Services (% of Respondents)
Suggestions Online process is faster Online process is more secure Fewer errors in online process Fewer visits to commercial taxes department Online process is more transparent Andhra Pradesh 69.27 27.56 40.49 29.76 33.17 Chhattisgarh 92.27 58.70 43 56.52 24.40 Gujarat 27.59 17.58 11.90 33.81 8.57 Rajasthan 50.14 25.21 17.38 40.74 10.83 Tamil Nadu 30.59 10.55 5.94 10.73 17.49

Table 10: Reasons for Dependence on CTPs (%)


Reasons Andhra Pradesh M Percentage of Dealers outsourcing at least part of task to CTPs Reasons for depending on CTPs Lack of full knowledge of procedures To ensure accuracy of data given to Department Want to avoid interface with Dept. ofcials Do not want to spend time on this 22.1 83. 40.9 7.4 34.7 69.3 30.7 6.7 69.9 30.9 15.3 17.4 34.4 45.3 18.8 33.6 89.7 47.1 1.3 12.3 80.0 60.7 6.4 25.7 89.5 39.3 6.3 15.7 81.8 35.3 10.6 13.5 52.1 33.2 6.1 40.9 84.6 27.5 2.4 17.5 72.7 C 75 Chhattisgarh M 92.9 C 73.1 Gujarat M 93.4 C 80.9 Rajasthan M 77.4 C 82.9 Tamil Nadu M 68.5 C 70.0

35

Impact Assessment of Commercial Taxes Computerization 2010

Table 11 : Attributes Considered Important by Dealers (by % of Responses)10


Attributes Andhra Pradesh Rajasthan11 Optional Transparency in CTD Ability to inuence policies rules and procedures Clarity and simplicity of processes and procedures Condentiality and security of data Knowledge of ofcials Accountability of ofcials Level of corruption Courtesy and helpfulness of ofcials Problem resolution Complaint handling mechanism Cost incurred in procuring statutory forms Time and effort in ling returns Cost of availing service Time and effort in procuring forms 7.2 9.1 9.3 8.8 9 6.1 7.6 9.3 14.8 6.3 7.5 8.9 19.4 11.6 16.5 7.1 7.6 11.1 6.5 Mandatory Gujarat Optional Mandatory 10.7 7.4 Tamilnadu Chattisgarh

Table 12: Attributes Considered Important by CTPs (by % of Responses)12


Attributes Andhra Pradesh Rajasthan13 Optional Transparency in CTD Ability to inuence policies , rules and procedures through feedback Level of corruption Knowledge of ofcials Courtesy and helpfulness of ofcials Queuing system at the CTD ofce Design and Layout of forms Convenience of location of ofce Complaint handling mechanism and problem resolution Cost incurred in procuring statutory forms Time and effort in ling returns Time and effort in procuring forms Cost of availing services 7.1 12 7 12.2 10.1 10.8 6.3 7.9 9.5 6.3 6.8 8.9 14.1 7.1 18.7 11.9 18 22.1 Mandatory Gujarat Optional Mandatory 7.7 6.9 9.6 Tamilnadu Chattisgarh

Quality of governance
__________
10

Quality of service

Cost of availing service

The list of attributes presented in the table is not exhaustive. Only few important attributes have been picked up. Therefore the percentage may not total to 100. 11 In Rajasthan and Gujarat dealers were analyzed for optional and mandatory services separately and were asked to select three important attributes in each of the cases. Values presented are for both optional and mandatory services. In case of other states the values represent combined scores for optional and mandatory services 12 The list of attributes presented in the table is not exhaustive. Only few important attributes have been picked up. Therefore the percentage may not total to 100. 13 In Rajasthan and Gujarat CTPs were analyzed for optional and mandatory services separately and were asked to select three important attributes in each of the cases. Values presented are for both optional and mandatory services. In case of other states the values represent combined scores for optional and mandatory services

36

Impact Assessment of Commercial Taxes Computerization 2010

Taken together, the feedback from users points to areas where improvements can be made in the delivery of services. These are discussed in the next section.

8.0 Recommendations for Improving Online Services


Following recommendations emerge from the suggestions and feedback of users to improve the working of the current computerized systems. 8.1 Filing Returns 1. Preparation of documents: Online dealers have to enter data on an online template this is a complex and time consuming process. There is a need to make this process simpler and faster. One major problem pointed out by users is that while uploading online template (after data entry), if there is an error (usually syntax error), the online application will not accept the template. Consequently the user has to rectify the error and upload the template yet again. This leads to wastage of time many dealers therefore suggest that the template should be designed to detect errors during data entry stage itself, so that time is not wasted while uploading the template Many dealers have suggested that the online template of CTD should be made compatible with popular accounting software (e.g. Tally) so that data could be directly transferred to the online template - thus avoiding data entry. The study reveals that most online dealers maintain book of accounts on their computers and therefore it could be worthwhile to consider this suggestion.

2. Submitting returns to CTD ofce: Online dealers have to submit hard copy of online returns to CTD ofce thus they have to make at least on trip to the ofce. There is a need to make this service end-to-end and eliminate the need to visit ofce. We understand that this service can be made an endto-end service through use of digital signature. However, the use of digital signature among dealers is minimal because: Most dealers lack proper awareness regarding digital signature Many are reluctant to use it because they believe that digital signature is not secure it could be hacked and misused The study has revealed that most dealers depend on CTPs (either fully or partially) for ling returns. This means that the dealer will have to give the CTP access to his/her digital signature which are not supposed to be shared. Considering the above mentioned points we feel that service should be made end-to-end by circumventing the challenges posed by digital signature.

8.2 Obtaining Statutory Forms 1. CTD must ensure that the addresses of dealers maintained in their database are accurate the study revealed that, in many cases, there were delays in delivery of statutory forms because they were dispatched to wrong addresses. 2. Ofcials must process applications and dispatch statutory forms ASAP forms should be delivered within 15 days of receipt of application.

37

Impact Assessment of Commercial Taxes Computerization 2010

Obtaining Statutory Forms (Online Mode): At present statutory forms are being dispatched from a centralized location (Hyderabad). If this process is decentralized, by dispatching statutory forms from Divisions/Circles, the time taken to deliver forms to dealers, especially those in Vijaywada and Visakhapatnam, can be reduced signicantly. 8.3 Tax Payment 1. One of the major suggestions that we received dealers and CTPs is that Tax Consultants should be allowed to make e-payment on behalf of their clients through Consultants Internet Banking A/C (dealers do not want to give CTPs access to their accounts). This will not be a good practice. Therefore the process of e-payment should be further simplied so that the service can be used by the dealers themselves. 2. Another major suggestion was to Involve more banks in e-payment 8.4 Awareness Campaign 1. Awareness Campaigns on Online return ling and other processes (Downloading statutory forms etc) should be held to increase the percentage share of online mode. This awareness will increase the condence in dealers as well as Commercial Tax Practitioner. These awareness programs will also provide the training to the dealers or their representative, so that they can ll the data in a right manner while ling the e-returns in future. 2. Any change in the template or form should be notied through various communication channels such as newspapers, email, website etc. 3. A help manual should be prepared which guides Dealers and Commercial Tax Practitioner step wise how to le return electronically and this manual should be made online so as to reach the maximum users. In the long run with the introduction of VAT, the systems have to be overhauled to offer end to end on line services for every dealer. To cater to small dealers who may not have access to the Internet on their own, either cyber cafes have to be trained, licensed and incentivized to offer the services. In addition privately run facilitation centers dealing with only commercial tax application may be opened in larger towns. At the back-end complete work ow would have to be automated after streamlining the processes; revision of forms and review of requirement of supporting documents.

38

Impact Assessment of Commercial Taxes Computerization 2010

Annexure 1

Service Delivery Process


Obtaining Statutory Forms
Manual Procedure Andhra Pradesh 1. To obtain statutory forms dealers have to give application to CTD number of forms required and details regarding forms received earlier are given in the application After verication of application, dealers are given statutory forms as per their requirement dealers have to collect the forms from CTO Ofce There is no service charge but dealers have to pay some amount towards cost of Statutory Forms Online Procedure 1. Dealers (who wish to apply online for statutory forms) have to register with Centralized Dealer Service Centre (CDSC). Registration can be done either manually or online. To obtain statutory forms the dealer sends an online application to CDSC After verication of application, statutory forms are dispatched to dealers through courier service Courier charges and transaction charges are collected from dealers To obtain CST forms (C, F, H forms etc.) the dealer sends an online application to CTD After verication of application, statutory forms are dispatched to dealers through courier service There is no service charge. However, dealers have to pay Rs. 200/ annually towards courier charges

2.

2. 3. 4.

3.

Gujarat

(-do-)

1. 2. 3.

Filing Returns
Manual Procedure Online Procedure

Andhra Pradesh

1.

Return documents are prepared manually (using various forms such as VAT forms, CST forms) in the format specied by the department Dealer submits the original return documents to CTD. After verication of return documents by the clerk/ CTI, the dealer receives a receipt of submission An ofce copy of the return documents is maintained by the Dealer There is no service charge for ling returns

1.

Dealer downloads templates for Return Filling from CTD website this is a one time activity, unless changes in template are brought about by the CTD Dealer compiles data as per the templates some dealers take a print out of the template and ll it up manually

2.

2.

3. 4. 5.

Data is entered in the template Template is uploaded and dealer receives an acknowledgement from CTD There is no service charge for ling returns

3. 4.

Chhattisgarh Gujarat Rajasthan

(-do-) (-do-) (-do-)

(-do-) (-do-) (-do-)

39

Impact Assessment of Commercial Taxes Computerization 2010

Manual Procedure

Online Procedure

Tamil Nadu

(-do-)

1. 2.

Dealer compiles data, which is to be submitted to CTD, manually. Dealer has to login to his/her account on the website of the department and enter data online. The dealer also has to upload excel les of sales/purchase details. Unlike other States, in Tamil Nadu data entry template cannot be downloaded as a result data entry is done online After uploading data, dealer receives an acknowledgement from CTD There is no service charge for ling returns

3. 4.

Tax Payment
Manual Procedure Chhattisgarh 1. Payment is accepted in Banks/Treasuries Online Procedure 1. Dealers can make payment online through their online Bank Accounts7. There is no need to visit Bank/Treasury to make payment e-forms are lled by dealers (giving payment details) and after this the software leads user to selected Banks gateway After online payment, hard copy of e-challan is provided through Banks interface, which can be printed and provided to CTD, as is done with the regular challan Hard copy of the e-challan is submitted to CTD this is done along with submission of returns and therefore dealers do not make separate trips for this.

2.

Dealers have to ll challan (Banks/Treasuries) - giving payment details

2.

3.

One has to go in person to Banks/Treasuries and stand in queues to make payment at least one trips is required for this Tax payment receipt (challan) is submitted to CTD this is done along with submission of returns and therefore dealers do not make separate trips for this.

3.

4.

4.

Tamil Nadu

(-do-)

(-do-)

40

Impact Assessment of Commercial Taxes Computerization 2010

Annexure 2

Outline of the Survey Instrument


Section No. 1 Identication of respondents: Name, address, status of the respondents, village/city, taluka and district where he/she belongs to, residential address of the respondent and status in the family. 2 Awareness of the respondent regarding the computerized services: Duration and source of awareness, actual user prole from the household at the computerized centre 3 4 Services Availed: Incidence of services availed and date of actual availing of the service Costs of Availing Service: Distance, usual mode of travel, number of trips, travel time and cost of each trip, waiting time, wage loss, service charges, errors in documents, number of trips, incidence of bribes, amount of bribe paid, purpose of paying bribes, payments made to intermediaries, total payments made, level of anxiety in order to obtain the service 5 Overall Assessment: Perception about improvement in 22 of attributes related to costs, service quality and governance regarding manual vis--vis computerized systems, ranking of 3 most important attributes out of the above, preference or otherwise of the computerized land records centre vis--vis the manual land records centre 6 7 Perception of the user about quality of governance and quality of service Perception of user about e governance: General statements to understand the level of liking or otherwise of the respondent to the e governance system Dealing with questions related to

41

Impact Assessment of Commercial Taxes Computerization 2010

Annexure 3

Prole of Dealers and CTPs


Dealer- Prole
Dimensions Constitution of enterprise Proprietorship
Partnership Private Limited Company Public Limited Company Hindu Undivided Family Cooperative Society Govt. Undertaking Type of business Manufacture Wholesale Retail Export Hire purchase Work contract Leasing Hotels Food Drink C & F Agent Others Banking Mode of maintenance of books and accounts Number of staff involved in activities w.r.t. commercial taxes Manual Computerized 1 2 3 4 5 >5 2.1 97.9 41.3 41.3 12.1 15.4 51.5 22.0 1.1 .5 6.2 .2

AP 83.1 5.2 11.6

CG 69.6 14.9 13.9


1.7

GJ (O) 62.2 23.5 9.2 3.1


.5

GJ (M) 52.6 28.1 18.2 1.0

RJ (O) 58.6 20.1 16.9 3.2


.8

RJ (M) 63.9 12.4 19.6 3.1

TN 72.8 17.6 7.8 1.3

.5 1.0

.4

1.0

.5

17.9
36.4

32.7
63.3

34.9
58.3

15.7
62.0

18.6 63.9 11.3 3.1

13.1 25.0 56.7 .5


3.3 .2 1.2

43.3 .5 .3 1.2 .5

3.6 .0 .5

6.8

18.1 2.4
. .2 .4 .6 .4 .2

1.5 1.6

2.0
1.0

43.0
57.0

21.7
78.3 100.0

29.4 70.6 76.7 17.5 3.6 2.2

3.1 96.9 69.1 25.8 3.1 2.1

6.3 93.7 77.8 19.7 1.7 .5


.4

93.9
6.0

76.7
17.6

72.9
18.2

.1

4.3 .5 .8

4.7 2.1 2.0

4.6 .7

42

Impact Assessment of Commercial Taxes Computerization 2010

CTP Prole (%)


Dimensions Education of CTP CA LLB B Com Years of experience of CTP 1-5 6-10 11-15 16-20 21-25 >25 Number of staff involved in activities w.r.t. commercial taxes 0 1 2 3 4 5 >5 Computer literacy of CTP Online Manual Experience in using online services Online Manual 100.0 96.1 100.0 30.6 100.0 65.6 100.0 3.4 100.0 63.5 100.0 38.3 100.0 100.0 43.8 42.4 8.4 3.9 1.5 76.6 18.9 4.5 2.7 25.7 33.8 23.0 9.5 5.5 21.6 31.1 20.3 13.5 13.7 21.6 46.4 16.3 7.8 6.5 1.4 100.0 79.2 100.0 31.1 100.0 100.0 11.5 46.2 21.2 3.8 7.7 9.6 100.0 46.5 23.7 14.1 8.6 5.1 2.0 100.0 AP 54.7 42.4 3.0 14.9 55.2 24.6 5.0 CG 33.3 59.2 7.5 14.9 34.8 35.3 14.9 GJ (O) 13.5 77.0 9.5 GJ (M) 18.9 78.4 2.7 RJ (O) 55.6 39.2 5.2 22.20 25.50 17.80 10.5 11.2 13.30 RJ (M) 61.5 26.9 11.5 21 24.9 30.8 3.8 5.7 13.4 TN 46.0 7.1 47.0 10.6 31.3 33.3 16.7 8.1

43

Impact Assessment of Commercial Taxes Computerization 2010

Annexure 4

Reasons for Execessive Wait


Dealers15
Reasons for excessive waiting time(%) Rajasthan (Optional services) M C Rajasthan (Mandatory services) Computerized Gujarat (Optional services) M C Gujarat (Mandatory services) Computerized Tamilnadu Chattisgarh16 Andhra Pardesh17

Dealers Long queue/ Too many applicants at ofce Ofcials of CTD are inefcient (slow in processing) Too many Applicants at ofce Processes are too complex & take lot of time to complete Some windows/ counters were not operational Badly managed queue Power Breakdown Computer and network connectivity failure Others

57.4

70.2

56.7

23.9

3.8

47.4

25

83.2

65

26.5

14.9

36.7

71.4

80.8

39

25

11.6

15

25

10

10.3

10.6

4.8

3.8

4.2

8.3

5.9

2.1

6.7

5.1 25

1.1

1.7 0 0 2.1 0 11.5 6.8 1.7

___________

Rajasthan and Gujarat have analyzed both mandatory and optional services separately which is not done for other states. In Chhattisgarh the values represent total of both manual and computerized system only for the service of ling of returns ( both dealers and CTPs). Payment of taxes has not been considered 17 In Andhra Pradesh the values represent total of both manual and computerized system only for the service of ling of returns ( both dealers and CTPs).
16

15

44

Impact Assessment of Commercial Taxes Computerization 2010

CTPs18
Reasons for excessive wait (%) Rajasthan (Optional services) CTP Long queue/ Too many applicants at ofce Ofcials of CTD are inefcient (slow in processing) Processes are too complex & take lot of time to complete Too many applicants at ofce Badly managed queue Power breakdown Some windows/ counters were not operational Computer and network connectivity failure Others 4.2 0 0 0 12.5 4.3 4.2 5.6 8.3 0 1 1.4 13 13 9.1 13 100 8.3 16.7 0 13.0 8.3 1.4 9.1 25 27.8 45.8 39.1 58.3 39.1 4.3 9.1 58.3 50 45.8 47.8 16.7 17.4 92.8 72.7 M C Rajasthan (Mandatory services) Computerized Gujarat (Optional services) M C Gujarat (Mandatory services) Computerized Tamilnadu Chhattisgarh Andhra Pradesh

__________________ 18

Rajasthan and Gujarat have analyzed both mandatory and optional services separately which is not done for other states.

45

PART II

State Reports by Research and Development Initiative Pvt. Ltd., Delhi

Andhra Pradesh Impact Assessment of Commercial Taxes Computerization 2010

Acknowledgements
We express our sincere thanks to the Department of Information Technology, Government of India for giving us the opportunity to conduct the assessment. For helping us conceptualize this study, we express our foremost thanks to Mr. R. Chandrashekhar, Secretary, Department of Information Technology & Prof. Subhash Bhatnagar, Adjunct Professor, IIM, Ahmedabad. We are extremely indebted to Mr. S. P Singh, Senior Director, DIT and Ms. Radha Chauhan, Principal Consultant, DIT, for entrusting us with this study. We wish to thank Ms. Ranjeev R. Acharya, Commissioner, Commercial Taxes Department, Government of Andhra Pradesh, Mr. G.S. Mishra, Commissioner, Commercial Taxes Department, Government of Chhattisgarh, Mr. P.K. Pujari, Commissioner, Commercial Taxes Department, Government of Gujarat, Mr. B.N. Sharma, Commissioner, Commercial Taxes Department, Government of Rajasthan, Mr. T. Jacob, Secretary, Commercial Taxes and Registration Department, Government of Tamil Nadu for facilitating the survey at every stage. Ms. Vineeta Dixit, Principal Consultant, National e-Governance Division, DIT Ms. Sulakshana Bhattacharya, DIT, Ms. Shiffy Thankam Varkey, DIT and Ms. Nupur Singh, In-charge, Center for Electronic Governance, IIMA provided us with constant help and support. We express our sincere gratitude to them. We express our heartfelt gratitude to all Field Supervisors and Investigators who carried out the survey.

51

Table of Contents

Executive Summary ...........................................................................................................................55 1.0 Introduction .................................................................................................................................57 2.0 Prole of Respondents ................................................................................................................59 3.0 Awareness and Usage of Online Services ..................................................................................59 4.0 Time, Effort and Cost of Availing Services................................................................................60 5.0 Overall Assessment.....................................................................................................................71 6.0 Suggestions of Respondents .......................................................................................................72 7.0 Opinion of Service Providers ......................................................................................................72 8.0 Recommendations for Improving Online Services .....................................................................73 Annexure A: Sampling Methodology ...............................................................................................74 Annexure AI: Quasi-Experimental Design: Nonequivalent Groups Design (Post-test Only).........78 Annexure AII: Number of dealers using e-Services for the period: 01.04.2009 to 31.07.2009.......79 Annexure AIII: Selection of Circles Status Report from 01.04.2009 to 31.07.2009........................80 Annexure B: Listing Schedule ...........................................................................................................82 Annexure C: Interview Schedule for Dealers ...................................................................................83 Annexure D: Interview Schedule for CTPs .......................................................................................89 Annexure E: Field Work ....................................................................................................................96 Annexure F: Tables - Dealers Using Optional Online Services ........................................................97 Annexure G: Tables - CTPs Using Optional Online Services ........................................................116

53

Abbreviations and Acronyms

DIT

Department of Information Technology

IIMA Indian Institute of Management, Ahmedabad CTP Commercial Taxes Practitioner

CTD Commercial Taxes Department CDSC Centralized Dealer Service Centre

54

Impact Assessment of Commercial Taxes Computerization 2010-Andhra Pradesh

Executive Summary
The Commercial Taxes Department of Andhra Pradesh has introduced online services for dealers. Major services include ling of returns and applications for statutory forms. The primary objective of this study was to assess the impact of online services on end users (Dealers and Commercial Taxes Practitioners). In order to gather information from end users, a survey was undertaken. Two different interview schedules were used in the survey, which covered 813 end-users in six Divisions of Andhra Pradesh. This report summarizes major ndings of this survey. Awareness and Usage of Online Services Data obtained from Commercial Taxes Department, Andhra Pradesh showed that the number of users of online services is limited. Among dealers, lack of awareness about e-services, is one of the major reasons for this 31.6% of comparison group (manual mode users) were not aware of online services. However, among CTPs awareness is not an issue - as 98% of comparison group CTPs were aware of online services. Time, Effort and Cost of Availing Service: Obtaining Statutory Forms This online service has had signicant impact it has eliminated trips to ofce for obtaining statutory forms (as it is delivered to dealers by courier service) thereby saving waiting time, travel time, travel cost and salary/wages spent on availing service. However, total elapsed time in availing service is signicantly higher in the case of online mode. This is because in the online mode, statutory forms are sent through courier service after receipt of application from users. In the manual mode, on the other hand, dealers visit CTD ofce to obtain forms they receive it on the same day. It may be noted that in the online mode, statutory forms are dispatched (through courier service) from Hyderabad. Consequently, there is signicant difference among divisions in terms of number of days taken to obtain statutory forms. While dealers/CTPs, who are based in divisions near Hyderabad, received statutory forms within about 23 days, those in divisions such as Vijayawada and Vishakhapatnam received it much later: around 67 days. It is suggested that statutory forms should be dispatched from Division/Circle level rather than from Hyderabad this will reduce the number of days taken to deliver statutory forms in the online mode. The department could also reduce the cost of statutory forms for online users presently the cost of statutory forms for online users is more than twice that of manual users. Filing Returns Both manual and online users have to make at least one trip to CTD ofce - manual users to submit their returns and online users to submit hard copy of e-returns. Online service, therefore, has not been successful in terms of eliminating visits to ofce. Total elapsed time in availing service is signicantly higher in the case of online users - this is because online users have to spent time on online transactions in addition to the time spent in manual submission of hard copy to CTD Ofce. There is a need to make this service (e-returns) end-to-end by eliminating the need to visit ofce (for submission of hard copies of returns). Perhaps a user generated PIN could replace digital signature.

55

Impact Assessment of Commercial Taxes Computerization 2010-Andhra Pradesh

1.0 Introduction
The Department of Information Technology (DIT), Government of India, is mandated to periodically assess impact of Mission Mode Projects (MMPs) on end users. In line with this, the rst round of assessment was carried out in 2008 during which some Central and State MMPs were assessed. The framework for this study was developed by the Centre for Electronic Governance (CEG) of IIMA. Eleven empanelled market research agencies carried out surveys among end users across India, analyzed data and presented reports. In the current round of assessment (2nd round) RDI has been entrusted with impact assessment of commercial taxes e-governance projects in ve States viz. Rajasthan, Chhattisgarh, Gujarat, Andhra Pradesh and Tamil Nadu. This report will discuss, in detail, impact of Commercial Taxes e-Governance projects in Andhra Pradesh. The broad framework for this study has been developed by IIMA. RDI was primarily responsible for conducting pilot study, developing research design and sampling methodology, modifying interview schedules (that was developed by IIMA and used in the 1st round), survey, analysis and preparation of State level reports. 1.1 Objectives of the study Commercial Taxes Department (CTD) of Andhra Pradesh has introduced many online services2 for dealers including ling of returns and applications for statutory forms. This study was commissioned primarily to assess the impact of online services on end users. The interview schedule designed for the study has ve major sections, each with specic objectives: 1. User Prole: To form a prole of end users - dealers and Commercial Taxes Practitioners (CTPs). 2. Awareness and Usage of Online Services: To understand the extent of awareness and usage of various online services. In addition, this section will also give information as to why certain users prefer online services over manual services and vice versa. 3. Time, Effort and Cost of Availing Services: To assess the impact of online services on factors including number of trips for availing service, waiting time, salary/wages spent for availing service, total payment made and total elapsed time in availing service. 4. Overall Assessment: Perception of users regarding certain key attributes of the service delivery was captured in this section. Attributes included overall quality of service and overall quality of governance. 5. Suggestions: In this section we have captured suggestions of users on improving online services and increasing usage of online services.

Electronic service delivery launch date: April 2005

57

Impact Assessment of Commercial Taxes Computerization 2010-Andhra Pradesh

1.2

Research design and sampling methodology


Table 1: Percentage of Online and Manual Users (1st April 08 to 11th August 2009) (01.04.2009 to 31.07.2009)

Service M Filing of returns2 Application of statutory forms Information Dissemination* Applications for Registration**
*Approximate gures based on perception of Ofcials **Online Applications for Registration was introduced in November 2009 Source: Commercial Taxes Department, Andhra Pradesh

VAT (%) O 1.39 1 M 98.44 37.52 99 -

CST (%) O 1.56 62.48 1 -

98.61 99 -

There were several factors that had to be taken in to account while developing research design and sampling methodology for this study: 1. There were four major online services in Andhra Pradesh in July 2009. Table 1 give details of online services in the State and service wise percentage of users 2. All online services were voluntary dealers could either use manual mode or online mode according to their convenience 3. During pilot study we understood that many dealers in Andhra Pradesh relied (either partially or fully) on Commercial Taxes Practitioners (CTPs) for availing services. Users of online services would therefore include Dealers and CTPs (who were availing service on behalf of their clients) and we had to cover both categories of users in this study. After factoring in the above mentioned points, Nonequivalent Groups Design (with treatment and comparison groups), a type of Quasi-Experimental Design was adopted for the study. Multi Stage Random Sampling has been used in this study. The sampling methodology factored in activity level and geographical location for selection of Divisions and Circles. Please refer Annexure A for details on research design and sampling methodology. 1.3 Interview schedules

There were separate interview schedules for dealers and CTPs thus two interview schedules were used in this study. Interview schedules are given in Annexure C & D. 1.4 Listing and eld work To select dealers and CTPs for this study we needed several key-information. Listing exercise was carried out among dealers and CTPs in selected wards to gather following information:
_________ 2

E-returns is optional for dealers.

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Impact Assessment of Commercial Taxes Computerization 2010-Andhra Pradesh

1. Services availed in last three months (90 days) and mode of service used (online/manual) this is needed to classify dealers and CTPs as control or treatment group 2. Whether processes w.r.t services used were done in-house or CTPs assistance was taken (partially/ fully). If the dealer is completely relying on CTP there is no point in interviewing the dealer as he/she will not be able to answer most questions in the interview schedule. In such cases the CTP was interviewed instead of dealer 3. Address of CTP - in case CTPs assistance was sought Field work (survey) in Andhra Pradesh was carried out during December 2009 and January 2010. Listing schedule used for this study is given in Annexure B and details regarding eld work are given in Annexure E.

2.0 Prole of Respondents


The survey covered 813 respondents (Dealers and Commercial Taxes Practitioners) in six Divisions of Andhra Pradesh. The table below gives details of users covered. Detailed (questionnaire wise) tables are given in Annexure F & G.
Table 2: Users covered Details of Users

Dealers Commercial Taxes Practitioners

610 [Treatment/Online:309 & Comparison/Manual:301] 203 [Treatment/Online:101 & Comparison/Manual: 102]

3.0 Awareness and Usage of Online Services


Data obtained from Commercial Taxes Department, Andhra Pradesh showed that the number of users of online services is limited - especially w.r.t Filing Online Returns (Please refer Table 1). Therefore one of the objectives of this study was to nd out the reasons for low usage of online services. 3.1 Reasons for low usage of online services

Dealers: Among the comparison group about one third (31.6%) were not aware of online services this highlights the need for awareness generation among dealers. Those dealers who were aware (68.4%) avoided using online services because of various reasons major ones are given below: Do not have skills to use online services Online process is prone to errors Online process is not secure Online process is slow Have to submit hard copy to CTD (e-returns)

CTPs: Unlike Dealers, almost all comparison group CTPs (98%) were aware of online services. However, these CTPs (who were aware) chose not to use online services because of the following

59

Impact Assessment of Commercial Taxes Computerization 2010-Andhra Pradesh

major reasons: 3.2 Online process is prone to errors Online process is not secure Online process is slow Have to submit hard copy to CTD (e-returns) Major reasons for using online services

Major reasons given by Dealers & CTPs for using online services are: Online process is faster Online process is more secure Fewer errors in online process Fewer visits to commercial taxes department Online process is more transparent

Detailed (questionnaire wise) tables are given in Annexure F & G.

4.0 Time, Effort and Cost of Availing Services


In this section we shall analyze time, effort and cost incurred in availing the following services: Obtaining Statutory Forms and Filing of Returns. Other services could not be analyzed as there werent sufcient responses for them. 4.1 Obtaining statutory forms
Table 3: Difference between Manual & Online processes of obtaining statutory forms
Manual 1. To obtain statutory forms dealers have to give application to CTD number of forms required and details regarding forms received earlier are given in the application After verication of application, dealers are given statutory forms as per their requirement dealers have to collect the forms from CTO Ofce There is no service charge but dealers had to pay some amount towards cost of Statutory Forms Cost of Statutory forms (For 100 forms): Form Way bills C,F,H 4. At Division / Circle Ofces Rs. 120/Rs.108/Form Way bills C,F,H Online 1. Dealers (who wish to apply online for statutory forms) have to register with Centralized Dealer Service Centre3 (CDSC). Registration4 can be done either manually or online. To obtain statutory forms the dealer sends an online application to CDSC After verication of application, statutory forms are dispatched to dealers through courier service Courier charges and transaction charges are collected from dealers Cost of Statutory forms (For 100 forms): At CDSC Rs. 250/Rs. 250/-

2. 3. 4.

2.

3.

In manual mode dealer have to visit CTO Ofce at least once to obtain statutory forms

Courier charges at CDSC: First(25)Forms or part thereof : Rs.12.60 Transaction charges at CDSC: First(50)Forms or part thereof : Rs. 5.40 In online mode dealers do not have to visit CTO Ofce to obtain CST Forms as they are dispatched through courier service

Note: In Andhra Pradesh Way Bills, which are used by both VAT and CST dealers, are also delivered through CDSC. Therefore dealers who are registered only for VAT (and not for CST) have also availed this service.
__________

Rama Informatics Ltd. is the service delivery partner w.r.t CDSC Dealers have to submit a specied amount with CDSC during registration cost of statutory forms, transaction charges and courier charges are deducted from this deposit.
4

60

Impact Assessment of Commercial Taxes Computerization 2010-Andhra Pradesh

As part of the survey 610 dealers and 203 CTPs were interviewed for gathering information on the service: obtaining statutory forms. Independent-Samples T Test has been used to analyze data.

Number of trips
Table 4: Number of trips Obtaining forms Dealer CTP Manual 1.00 1.00 Computerized .00 .00 Change (C-M) -1.00 -1.00 Signicance ** **

Number of Trips
1.5 1 0.5 0 Manual -0.5 -1 -1.5 Com puterized Change (C-M) -1 -1 1 1 0 0

Dealers

CTPs

None of the online users visited CTD to obtain statutory forms. Clearly, online service has helped users - it has eliminated trips to CTD ofce and thus saved waiting time, travel time, travel cost and salary/wages spent on availing service.

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Impact Assessment of Commercial Taxes Computerization 2010-Andhra Pradesh

Amount spent as salary/wages on total time spent in availing service5

Table 5: Amount spent as salary/wages on total time spent in availing service (INR) Obtaining forms Dealer CTP Manual 26.75 26.64 Computerized 9.67 8.16 Change (C-M) -17.078 -18.479 Signicance ** **

30 25 20 15 10 5 0 -5 -10

Amount spent as salary/wages on total time spent in availing service


26.75 26.64

9.67

8.16

Manual

Computerized

Change (C-M)
-17.078

-15 -20 -25

-18.479

Dealers

CTPs

Online users did not visit CTD Ofce to obtain forms - thus saving salary/wages that would have been spent for waiting time and travel time.

____ 5 Traveling time + waiting time + time for online transaction (man-hours spent X wage per man-hour)

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Impact Assessment of Commercial Taxes Computerization 2010-Andhra Pradesh

Total elapsed time in availing service

Table 6: Total elapsed time in availing service (Hours) Obtaining forms Dealer CTP Manual 1.0946 1.1353 Computerized 76.6146 88.6123 Change (C-M) 75.52001 87.47696 Signicance ** **

Total Elapsed Time in Availing Service (Hours)


100 90 80 70

88.6123 75.52001

87.47696

76.6146
60 50 40 30 20 10 0

1.0946

1.1353

Manual

Computerized

Change (C-M)

Dealers

CTPs

The data show that is signicant difference between the two modes w.r.t. total elapsed time for availing service time taken for delivery of statutory forms is much higher in the case of online mode. This is because in the online mode, statutory forms are sent through courier service after receipt of application from users. However, in the manual mode, dealers visit CTD ofce to obtain forms they receive it on the same day. In the online mode, statutory forms are dispatched from Hyderabad. As a result, there is signicant difference among divisions in terms of number of days taken to obtain statutory forms. While dealers/ CTPS in Divisions in and around Hyderabad received statutory forms within 23 days (mean), those in divisions such as Vijayawada and Vishakhapatnam received it much later: 67 days.

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Impact Assessment of Commercial Taxes Computerization 2010-Andhra Pradesh

It is suggested that statutory forms should be dispatched from Division/Circle level rather than from Hyderabad this will reduce the number of days taken to obtain statutory forms in the online mode. 4.2 Filing Returns Dealers registered with the CTD are required to le returns periodically, monthly/ bi-monthly/ quarterly/annually depending on turnover of dealer, in a prescribed format. Filing Returns has two major components: I. Preparation of documents: Time and cost in compiling data, preparation of documents and data entry in online template II. Submitting returns to CTD: Time and cost in submitting return documents to CTD and getting receipt of submission Most dealers (manual and online) take help from CTPs for either one or both components mentioned above, mainly because: dealers lack sufcient knowledge to prepare returns; they want to ensure that the data submitted to CTD is free of errors. There are several differences between manual and online mode of ling of returns. Major differences are given below:
Table 7: Differences between manual and online mode of ling of returns Manual 1. Return documents are prepared manually (using various forms such as VAT forms, CST forms) in the format specied by the department Dealer submits the original return documents to CTD. After verication of return documents by the clerk/ CTI, the dealer receives a receipt of submission An ofce copy of the return documents is maintained by the Dealer There is no service charge for ling returns Online 1. Dealer downloads templates for Return Filling from CTD website this is a one time activity, unless changes in template are brought about by the CTD Dealer compiles data as per the templates some dealers take a print out of the template and ll it up manually Data is entered in the template Template is uploaded and dealer receives an acknowledgement from CTD Dealer has to submit a hard copy of the return (print out of template) to CTO Ofce and receive a receipt of submission receipt is given without verication as the dealer has already submitted return online There is no service charge for ling returns

2.

2.

3. 4.

3.

5.

4.

6.

Respondents were asked to provide details on time, effort and cost incurred in ling returns. Responses of 305 dealers (Treatment/Online: 100 & Comparison/Manual: 205) and 88 CTPs (Treatment/Online: 31 & Comparison/Manual: 57) has been analyzed using Independent-Samples T Test and results are given in sections 4.2.1 and 4.2.2. Please refer Annexure F & G for details.

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Impact Assessment of Commercial Taxes Computerization 2010-Andhra Pradesh

4.2.1 Time and Cost of Preparation of Documents for Filing of Returns Total man-hours for preparation of documents
Table 8: Total man-hours for preparation of documents6 for Filing of Returns Filing Returns Dealer CTP Manual 1.5205 1.6442 Computerized 2.2611 2.0532 Change (C-M) 0.74061 0.40902 Signicance ** **

Total man-hours for preparation of documents


2.5
2.2611

2.0532

1.5
1.6442 1.5205

0.5

0.74061 0.40902

Manual Dealers

Computerized

Change (C-M) CTPs

Total man-hours spent in preparation of documents are signicantly higher for online users. This is mainly because online users have to enter data in online template.

__________
6

This includes man-hours spent in compiling data and man-hours were spent for data entry in online template

65

Impact Assessment of Commercial Taxes Computerization 2010-Andhra Pradesh

Total cost of preparation of documents

Table 9: Total cost of preparation of documents7 (INR) Filing Returns Dealer CTP

Manual
769.1463 351.75

Computerized
815.200 400.55

Change (C-M)
46.05366 48.794

Signicance
NS **

Total Cost of Preparation of Documents (INR)


900 800 700 600 500 400 300

815.2 769.1463

351.75
200 100 0

400.55

46.05366

48.794

Manual Delers

Computerized

Change (C-M) CTPs

Dealers: There is no signicant difference between the two modes w.r.t total cost of preparation of documents. CTPs: Total cost of preparation of documents is signicantly higher in online mode.

__________ 7

This includes amount spent as salary/wages for preparation of documents, expenses on stationery, cost of Internet, cost of Statutory Forms and other Forms including courier charges and Service charge paid to Tax Consultant for preparation of documents

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Impact Assessment of Commercial Taxes Computerization 2010-Andhra Pradesh

4.2.2 Time and Cost of Submitting Documents for Filing Returns Number of trips for Filing Returns

Table 10: Number of trips Filing Returns Dealer CTP Manual 1 1 Computerized 1 1 Change (C-M) 0 0 Signicance NS NS

1.2

Number of Trips

0.8

0.6

0.4

0.2

Manual Dealers

Computerized

Change (C-M) CTPs

Both manual and online users have to make at least one trip to CTD ofce. Therefore there is no signicant difference between the two modes w.r.t. number of trips for availing service.

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Impact Assessment of Commercial Taxes Computerization 2010-Andhra Pradesh

Waiting time8 for Filing Returns


Table 11: Waiting time (Minutes) Filing Returns Dealer CTP Manual 31.32 32.37 Computerized 37.19 19.52 Change (C-M) 5.873 -12.852 Signicance ** **

Waiting time (Minutes)


40

30 32.37 20 31.32

37.19

10

19.52 5.873

-12.852 -10

Manual
-20

Computerized

Change (C-M) CTPs

Dealers

Dealers: Waiting time is higher in the case of online users. This is despite the fact that hard copies of returns submitted by online users are not scrutinized.

CTPs: Waiting time is higher in the case of manual users. This is because hard copies of returns submitted by online users are not scrutinized whereas returns submitted by manual users are scrutinized.

__________ 8

Time spent in queue and transaction time at counter

68

Impact Assessment of Commercial Taxes Computerization 2010-Andhra Pradesh

Amount spent as salary/wages on total time spent in availing service9


Table 12: Amount spent as salary/wages on total time spent in availing service (INR) Filing Returns Dealer CTP Manual 30.79 31.46 Computerized 51.54 40.74 Change (C-M) 20.755 9.286 Signicance ** **

60

Amount spent as salary/wages on total time spent in availing service

50

40 51.54 30 31.46 30.79 20 40.74

10

20.755 9.286

Manual
Dealers

Computerized

Change (C-M)
CTPs

The difference seen is because online users have to submit hard copy to CTD for which they have to make at least one trip and also spent time for online transaction. Total payment made10 for Filing Returns
Table 13: Total payment Made (INR) Filing Returns Dealer CTP Manual .00 .00 Computerized .00 .00 Change (C-M) .00 .00 Signicance

None of the dealers/CTPs made any payment for availing the service.

__________
9

Traveling time + waiting time + time for online transaction (man-hours spent X wage per man-hour)

Includes a) service charge paid to CTP, b) amount paid to department for which receipt was given, and c) amount paid as bribe to department staff/ functionaries

10

69

Impact Assessment of Commercial Taxes Computerization 2010-Andhra Pradesh

Total elapsed time in availing service


Table 14: Total elapsed time in availing service Filing Returns Dealer CTP Manual .5173 0.5396 Computerized 1.1979 0.88 Change (C-M) 0.68063 0.34035 Signicance ** **

Total Elapsed Time in Availing Service (Hours)


1.4 1.2 1

1.1979
0.8 0.6 0.4

0.88 0.68063 0.5396 0.5173 0.34035

0.2 0

Manual Dealers

Computerized

Change (C-M) CTPs

Total elapsed time is signicantly higher in the case of online users. This is because they have to spent time on online transactions in addition to the time spent in manual submission of hard copy to CTD Ofce.

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Impact Assessment of Commercial Taxes Computerization 2010-Andhra Pradesh

5.0 Overall Assessment


Dealers and CTPs were asked to rate some attributes11 w.r.t optional services provided by CTD on a ve point scale. Independent-Samples T Test was used for analysis. Dealers: Analysis shows that in the case of 18 attributes, difference of mean scores (of manual and online users) was not statistically signicant. In the remaining 9 attributes there was signicant difference between the two modes. The table given below lists the attributes that showed signicant difference:
Table 15: Attributes that showed signicant difference

Attributes on which online service was rated higher than manual service 1. Time and effort in ling returns 2. Cost incurred in ling returns 3. Time & effort in procuring statutory forms 4. Cost incurred in procuring statutory forms 5. Queuing system at CTD Ofce

Attributes on which manual service was rated higher than online service 1. Overall quality of governance 2. Condentiality & security of data 3. Accountability of Ofcials 4. Convenience of location of ofce

CTPs: Analysis shows that in the case of 16 attributes difference of mean scores (of manual and online users) was not statistically signicant. In the remaining 11 attributes there was signicant difference between the two modes. The table given below lists the attributes that showed signicant difference:
Table 16: Attributes that showed signicant difference

Attributes on which online service was rated higher than manual service 1. Cost incurred in ling returns 2. Accountability of ofcials 3. Knowledge of ofcials 4. Convenience of location of ofce 5. Queuing system at CTD Ofce 6. Durability and legibility of certicates/ receipts CTP

Attributes on which manual service was rated higher than online service 1. Cost incurred in procuring statutory forms 2. Clarity and simplicity of processes and procedures 3. Transparency in CTD 4. Level of corruption 5. Adherence to Citizen Charter

______________ 11

There were 27 attributes for dealers and CTPs

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Impact Assessment of Commercial Taxes Computerization 2010-Andhra Pradesh

Composite Score Interview schedule wise Composite Scores were calculated based on information collected from the section: Overall Assessment. Results are given in the gure below:

Composite Score
0.025 0.02 0.015 0.01 0.005 0.006219 0

Dealers CTPs

0.021438

6.0 Suggestions of Respondents


Major suggestions for improving online services Eliminate practice of submission of hard copy to CTD (w.r.t e-ling) Server speed should be increased Maintenance of website should not be done during ofce hour Provide templates (w.r.t. returns) that can perform data verication ofine

Major suggestions to increase use of e-service Awareness campaigns on online services for users Establishment of common service centres to facilitate e-services to all Online processes should be made much more user friendly & simple

7.0 Opinion of Service Providers


As part of the study we interviewed ofcials of CTD (41 Ofcers) at the Circle level. Information gathered from them is summarized below: Impact of Commercial Taxes E-Governance Project Productivity of CTD ofcials has increased Maintenance of records have become easier Errors have reduced signicantly

72

Impact Assessment of Commercial Taxes Computerization 2010-Andhra Pradesh

It has reduced corruption

Suggestions for Improving Online Services Online services should be mandatory All services of CTD should be provided online Eliminate practice of submission of hardcopy to CTD Server should be well maintained and its speed should be increased

8.0 Recommendations for Improving Online Services


Obtaining Statutory Forms (Online Mode): At present statutory forms are being dispatched from a centralized location (Hyderabad). If this process is decentralized, by dispatching statutory forms from Divisions/Circles, the time taken to deliver forms to dealers, especially those in Vijaywada and Visakhapatnam, can be reduced signicantly.

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Impact Assessment of Commercial Taxes Computerization 2010-Andhra Pradesh

Annexure A

Sampling Methodology Andhra Pradesh


1.1 Introduction The Commercial Taxes Department of Andhra Pradesh has 25 Divisions (each Division roughly coinciding with a District HQ except Hyderabad - the City of Hyderabad is made of 5 Divisions) and 193 Circles. In addition, there are 18 check posts operating currently on the borders of Andhra Pradesh. Out of these, 5 are Integrated Check Posts & 13 are Border Check posts. Online services in Andhra Pradesh and service wise percentage of users are given below:

Table 1: Percentage of Online and Manual Users (01.04.2009 to 31.07.2009) Service Filing of returns Application of statutory forms Information Dissemination* Applications for Registration**
*Approximate gures based on perception of Ofcials **Online Applications for Registration was introduced in November 2009 Source: Commercial Taxes Department, Andhra Pradesh

VAT (%) M O 98.61 1.39 99 1 -

M 98.44 37.52 99 -

CST (%) O 1.56 62.48 1 -

1.2 Research Design Nonequivalent Groups Design, with treatment and comparison groups, has been adopted for impact assessment of Optional Online Services (Please refer Annexure A-I). Treatment Group has been dened as: Dealers who have availed at least one of the following online services (reference period is last 90 days): 1. e-returns; 2. Collecting information online (including application tracking), 3. Online application for statutory forms. Treatment groups were asked to provide information pertaining to online services only. Comparison Group has been dened as: Dealers who have not availed any of the optional online services, but availed at least one of the following manual services (reference period is last 90 days): 1. Filing of returns; 2. Collecting information (including application tracking), 3. Application for statutory forms. Comparison group were asked to provide information pertaining to manual services only.

______________ 12

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E-returns is optional for dealers.

Impact Assessment of Commercial Taxes Computerization 2010-Andhra Pradesh

1.3 Selection of Divisions


Since there are only two levels in Andhra Pradesh Divisions and Circles it was decided to select maximum number of Divisions in the rst stage of selection itself. All 25 Divisions were arranged in decreasing order of their activity level: online ling of returns and online application for statutory forms. Please refer Annexure AII. Out of 25 Divisions, 13 divisions that had limited number of e-users were eliminated as it would be difcult to nd treatment group (online users). Please refer Annexure AII. The remaining 12 divisions were divided in 6 groups and one division was selected from each group. Please refer Annexure AII.

Table 2: Selected Divisions Division No. of Dealers Using e-Services 59102 11040 8582 5964 3098 1463 89249 Percentage13 Sample Size proportionate to activity level 530 99 77 53 28 13 800 Modied Sample Size* 304 96 99 102 96 105 802

Punjagutta Secunderabad Abids Vijayawada-II Charminar Visakhapatnam Total

66.22 12.37 9.62 6.68 3.47 1.64 100%

* Sample size in Punjagutta and Secunderabad have been reduced and that in other divisions have been increased

1.4 Selection of Circles


Circles within each Division were arranged in descending order of their activity level. Then Circles with less than ninety e-users were eliminated (as it was difcult to nd treatment group in these Circles) and the remaining Circles were selected. In all, 42 Circles has been covered in 6 Divisions (Please refer Annexure AIII).

______________ 13

Percentage of users in each Division

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Impact Assessment of Commercial Taxes Computerization 2010-Andhra Pradesh

Table 3: Selected Circles Division Selected Circle LTU Vengalrao Nagar Srinnagar Colony Panjagutta Khairatabad Somajiguda Sanatnagar Jubilee Hills LTU Tarnaka General Bazar Circle Musheerabad Mahankali Street R.P. Road Gandhinagar Vidyanagar LTU Basheerbagh M.J. Market Narayanaguda Abids Sultan Bazar Hyderguda Barkatpura Nampally LTU Benz Circle Autonagar Suryarao Pet Sitarampuram Vuyyuru LTU Malakpet Afzalgunj Begum Bazar Daba Gardens Anakapalli Suryabagh China Waltair Dwarakanagar Narisipatnam (Steel Plant) Gajuwa

Punjagutta

Secunderabad

Abids

Vijayawada-II

Charminar

Vishakhapatnam

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Impact Assessment of Commercial Taxes Computerization 2010-Andhra Pradesh

1.5 Selection of Respondents from Circles


At the Circle Level, a listing exercise was carried out to categorize Dealers and CTPs as treatment and control groups.

1.6 Total Sample Size


Table 4: Total Sample Size Division Punjagutta Secunderabad Abids Vijayawada-II Charminar Visakhapatnam Total Sample Size/Division 304 96 99 102 96 105 802 No of selected Circles/Division 8 8 9 6 4 7 42 Sample Size/ Circle 304/8 = 38 96/8= 12 99/9 = 11 102/6 = 17 96/4 = 24 105/7 = 15

Out of the total respondents (800), 75% (600) were dealers and 25% (200) are CTPs.

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Impact Assessment of Commercial Taxes Computerization 2010-Andhra Pradesh

Annexure AI

Quasi-Experimental Design: Nonequivalent Groups Design


(Post-test Only)

N X O N O
Each group is described on a single line (i.e., treatment group on top, comparison group at the bottom) N indicates that groups are Nonequivalent (i.e., people have not been randomly assigned to groups) X depicts the implementation of a program O stands for the administration of a measure to a group (only post-test in this case) The Non-Equivalent Groups Design (NEGD) is probably the most frequently used design in social research. It is structured like a pretest-posttest randomized experiment, but it lacks the key feature of the randomized designs -- random assignment. In the NEGD, we most often use intact groups that we think are similar as the treatment and control groups. In education, we might pick two comparable classrooms or schools. In community-based research, we might use two similar communities. We try to select groups that are as similar as possible so we can fairly compare the treated one with the comparison one. But we can never be sure the groups are comparable. Or, put another way, its unlikely that the two groups would be as similar as they would if we assigned them through a random lottery. NEGD is susceptible to the internal validity threat of selection. Any prior differences between the groups may affect the outcome of the study. Under the worst circumstances, this can lead us to conclude that our program didnt make a difference when in fact it did, or that it did make a difference when in fact it didnt. Reference Trochim, William M. The Research Methods Knowledge Base, 2nd Edition. Internet WWW page, at URL: http://www.socialresearchmethods.net/kb/ (version current as of October 20, 2006)

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Impact Assessment of Commercial Taxes Computerization 2010-Andhra Pradesh

Annexure AII

Number of dealers using e-Services for the period:


01.04.2009 to 31.07.2009
Sl.No 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Division Name Punjagutta Saroor Nagar Secunderabad Hyderabad Rural Abids Begumpet Eluru Vijayawada-II Charminar Nalgonda Vijayawada-I Vishakhapatnam Kakinada Chittoor Nizamabad Kurnool Anantapur Warangal Guntur Vizianagaram Adilabad Karimnagar Kadapa Narasaraopet Nellore Total Online Issue of Statutory Forms 57651 16976 10918 10726 8511 7100 6470 5821 3058 1636 1425 35 Eliminated Divisions 1442 15 300 267 91 1 0 0 0 0 0 0 0 132443
Note: Divisions in Bold have been selected Source: CTD, Andhra Pradesh

Online Filing of Returns 1451 166 122 188 71 140 0 143 40 5 77 1428 0 342 3 1 4 12 2 1 0 0 0 0 0 4196

Total e-Users 59102 17142 11040 10914 8582 7240 6470 5964 3098 1641 1502 1463 1442 357 303 268 95 13 2 1 0 0 0 0 0 136639

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Impact Assessment of Commercial Taxes Computerization 2010-Andhra Pradesh

Annexure AIII

Selection of Circles
Status Report from 01.04.2009 to 31.07.2009
Issue of Statutory Forms Online LTU Vengalrao Nagar Srinnagar Colony Panjagutta Khairatabad Somajiguda Sanatnagar Jubilee Hills TOTAL LTU Tarnaka General Bazar Circle Musheerabad Mahankali Street R.P.Road Gandhinagar Vidyanagar Ashok Nagar Market Street Circle Hissamgunj Circle TOTAL LTU Basheerbagh M.J.Market Narayanaguda Abids Sultan Bazar Hyderguda Barkatpura Nampally Gowliguda Agapura TOTAL LTU Benz Circle Autonagar Suryarao Pet Sitarampuram Vuyyuru Krishnalanka Machilipatnam Governorpet TOTAL 14734 13086 7926 7229 6938 3932 2993 2813 59651 5853 2097 1203 698 680 516 237 113 86 40 28 11551 3593 1773 1255 807 464 344 289 229 101 78 15 8948 2249 2410 514 504 402 74 35 21 0 6209 Filing of Returns VAT Online 0 31 836 95 53 46 38 8 1107 4 21 15 5 5 23 0 3 3 12 8 99 5 19 1 0 1 1 1 17 4 4 17 70 0 3 0 0 0 130 0 0 0 133 CST Online 0 20 544 0 0 38 31 0 633 0 21 14 2 3 21 0 3 0 5 3 72 5 15 1 0 1 0 1 13 4 3 7 50 0 0 0 0 0 0 0 0 0 0 14734 13137 9306 7324 6991 4016 3062 2821 61391 5857 2139 1232 705 688 560 237 119 89 57 39 11722 3603 1807 1257 807 466 345 291 259 109 85 39 9068 2249 2413 514 504 402 204 35 21 0 6342 Total

Sl. No.

Selected Division

Circle Name

Punjagutta

Secunderabad

Abids

Vijayawada-II

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Impact Assessment of Commercial Taxes Computerization 2010-Andhra Pradesh

Sl. No.

Selected Division

Circle Name

Issue of Statutory Forms Online

Filing of Returns Total VAT Online 0 11 0 0 2 7 1 3 0 0 24 461 383 173 128 87 80 76 47 3 1438 CST Online 0 9 0 0 0 5 1 0 0 0 15 145 83 47 78 56 32 48 35 3 527 1947 560 426 91 75 27 12 3 0 0 3141 606 471 220 206 143 126 124 82 22 2000

LTU

1947 540 426 91 73 15 10 0 0 0 3102 0 5 0 0 0 14 0 0 16 35

Malakpet Afzalgunj 5 Charminar


Begum Bazar Lord Bazar Mehdipatnam Osmangunj Charminar Maharajgunj Nizam Shahi Road

TOTAL
Daba Gardens Anakapalli Suryabagh

Vishakhapatnam

China Waltair Dwarakanagar Narisipatnam (Steel Plant) Gajuwaka Kurupam Market LTU

TOTAL

Note: Circles highlighted in Bold have been selected

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Impact Assessment of Commercial Taxes Computerization 2010-Andhra Pradesh

Annexure B

Andhra Pradesh - Listing Schedule for Dealers


Address of Dealer Division Circle < 50 lakhs.1 50 lakhs 1 crore2 > 1 crore.3 Services availed in last 90 days Service Filing Returns Obtaining Statutory Forms Applications for Registration Obtaining Information Used/Not Yes-1; No-2 Yes-1; No-2 Yes-1; No-2 Mode Manual -1; Online - 2 Outsourcing In-house - 1, Partial - 2, CTP - 3 In-house - 1, Partial - 2, CTP - 3 In-house - 1, Partial - 2, CTP - 3 In-house - 1, Partial - 2, CTP - 3 Name Code

Turnover in FY 2008-09

Manual -1; Online - 2 Manual -1; Online - 2

Yes-1; Manual -1; Online - 2 No-2 Address of CTP (only if CTPs service has been availed by the Dealer)

Name and Code of Investigator: Date:

Andhra Pradesh - Listing Schedule for CTPs


Address of CTP Division Circle Turnover in FY 2008-09 (INR) Optional Services availed in last 90 days Service Filing Returns Obtaining Statutory Forms Applications for Registration Obtaining Information Used/Not Yes-1 Yes-1 Yes-1 Yes-1 No-2 No-2 No-2 No-2 Mode Manual -1 Manual -1 Manual -1 Manual -1 Online - 2 Online - 2 Online - 2 Online - 2 Name Code

Name and Code of Investigator: Date:

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Impact Assessment of Commercial Taxes Computerization 2010-Andhra Pradesh

Annexure C

Andhra Pradesh: Interview Schedule for Dealers


A. IDENTIFICATION DETAILS
Sl. No. State State Code District District Code Phone Land : Mobile: TIN Group14 Treatment (online)..1 Interviewer Name Code Signature Editor Name Code Signature Supervisor Name Code Signature Comparison (manual)2 Distance from Circle (Km.) Circle Date of Interview (DD/MM) Respondents Name & Designation

Address of Dealer with landmark

Location of Ofce Town/ Code Village

Rural..1 Urban.2 Division Division

Code Circle code

B. DEALER PROFILE
1B. Please specify the Constitution of your enterprise Proprietor ....................................................1 Partnership...2 Private Limited Company...3 Public Limited Company4 Hindu Undivided Family 5 Co-operative Society...6 Government Undertaking....7 Others (Specify) Manufacture........1 Wholesale........2 Retail.......3 Export..........4 Hire Purchase..........5 Works Contract...........6 Leasing........7 Hotels......8 Food & Drink......9 Others (Specify)

2B.

Please specify the type of business15

3B. 4B.

What was the annual turnover in Financial Year: 2008-09 (INR) Please give details of Commercial Taxes paid in Financial Year: 2008-09 (INR) Tax Registered

Amount Paid (INR)

5B.

6B.

Please specify the mode in which Books of Accounts are maintained within the organization Number of staff in your organization who are involved in activities related to Commercial Taxes

VAT Yes-1 No-2 CST Yes-1 No-2 Entry Tax Others (Specify) Manual .....1 Computerized...2 Not maintained at all.3

________________ 14

As per the listing exercise As per Commercial Tax Department records

15

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Impact Assessment of Commercial Taxes Computerization 2010-Andhra Pradesh

C. AWARENESS AND USAGE OF ONLINE SERVICES


1C. Are you aware of online services provided by Commercial Taxes Department? Please specify the rst source of awareness about online services provided by Commercial Taxes Department Yes - 1 No - 2 Part D

2C.

Newspaper...1 Television.2 Other Dealers..3 CTPs....4 Commercial Tax Dep. Ofcial..5 Others (Specify) Application for Registration....1 Application for issue of statutory forms2 Filing Returns3 Information Dissemination..4 Yes 1 No 2 Online Service Filing Returns Application for Forms Application for registration Seeking information

3C.

Which are the online services provided by Commercial Taxes Department? (Multiple Responses)

4C.

Have you used any of the online services provided by Commercial Taxes Department? Please give details regarding online services used and frequency of use Frequency of Use Fortnightly.1 Monthly. 2 Quarterly3 Annually..6 Others (Specify) What are the reasons for using online service (s) (Multiple Responses)

7C Used/Not Yes-1 Yes-1 Yes-1 Yes-1 No-2 No-2 No-2 No-2

5C.

Frequency

6C.

PLEASE PROCEED TO PART D AFTER ANSWERING THIS QUESTION

Online process is faster ....1 Online process is more secure..2 Fewer errors in online process..3 Fewer visits to Commercial Taxes Department....4 Online process is more transparent....5 It is mandatory...6 Others (Specify) Do not have skills to use online services....1 Do not have access to hardware/software.....2 Do not have access to internet....3 Unreliable power situation....4 Online process is prone to errors....5 Online process is not secure.......6 Online process is slow..7 Have to submit hard copy to Ofce.8 Others (Specify)

7C.

What are the reasons for not using online service (Multiple responses)

D. TIME AND EFFORT AND COSTS OF AVAILING SERVICES


Please provide the following details with reference to maximum of two services that you have availed from Commercial Tax Department in last 90 days 1D. Services Availed in Last 90 Days: (Only Online services for Treatment Group and only Manual Services for Comparison Group) Filing Returns.1 Application of statutory forms....2 Application for Registration3 Seeking information (including application tracking)4 15D A 2 B

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Impact Assessment of Commercial Taxes Computerization 2010-Andhra Pradesh

2D. 3D.

Mode of service: Online 1; Manual 2 Was the online service availed mandatory/optional? Mandatory 1; Optional 2 [NOT APPLICABLE FOR MANUAL USERS] Were processes related to the service outsourced? No, it was done completely in-house 1 6D Yes, it was partially done by CTP 2 What are the reasons for depending on CTP (Multiple responses) Due to lack of sufcient knowledge on processes.1 To ensure accuracy of data given to Department..2 Want to avoid interface with Dep. Ofcials.3 Do not want to spent time on this.4 Others (Specify)

4D.

5D.

D-1: Time and Effort and Cost of Preparation of Documents (Only for Filing Returns)
6D. How many man-hours were spent in completing various forms and preparing supporting documents for manual ling of returns? PLEASE NOTE THAT THIS COULD BE APPLICABLE FOR ONLINE USERS AS WELL - MANY OF THEM ARE REQUIRED TO FILE HARD COPIES, EVEN AFTER FILING RETURNS ONLINE 7D. 8D. 9D. How many man-hours were spent for data entry in online template? (NOT APPLICABLE FOR MANUAL USERS) Total man-hours spent for preparation of documents for ling returns (6D + 7D) Please calculate the amount spent as salary/wages for preparation of documents for ling returns (Total man-hours spent X wage per man-hour) {INR} Cost of stationery16 and photo copies w.r.t ling returns {INR} Cost of access to Internet17 (INR) (NOT APPLICABLE FOR MANUAL USERS) Cost of Statutory Forms and other Forms including courier charges (INR) Service charge paid to Tax Consultant for preparation of documents (INR) (NOT APPLICABLE IF DONE IN-HOUSE: PLEASE SEE 4D) Total cost of preparation of documents for ling returns (INR)

10D. 11D.

12D. 13D. 14D.

D- 2: Time and Effort and Cost of Availing Services From Commercial Taxes Department
15D. 16D. How many trips did you need to make for the service including trips for error correction? Purpose of each trip and time spent waiting (Including time spent in queue and transaction time at counter ) for availing service - (min) To submit documents...1 To collect certicate.....2 To correct error in certicate/document issued by CTD..3 To correct errors in documents submitted by Dealer/Tax Consultant.4 To track application.5 To seek information.....6 To fulll requirement of physical presence.....7 Others (Specify)
____________ 16 17

Trip I II III IV V

Purpose Time Purpose

Time

Ledgers, CDs, printing paper, printing ink, carbon paper etc. Internet charges based on hours of internet used for this particular service

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Impact Assessment of Commercial Taxes Computerization 2010-Andhra Pradesh

17D.

Please see 15D if the number of trips is more than one, then ask: Why did you have to make more that one trip? It was required as per CTD procedure.......1 To follow up, as there was delay on the part of CTD to provide service..2 Could not avail service in previous visit (s) as there was a long queue..3 Concerned functionary was not available.4 Counter was not operational.....5 Documents/application submitted by me were incomplete..6 Others (Specify) Do you think you had to wait excessively for availing service in any of the trips? Yes 1 No 2 20D Please specify the reasons for excessive wait Long queue.1 Ofcials of CTD are inefcient (slow in processing).2 Processes are too complex & takes lot of time to complete...........3 Too many applicants at ofce.4 Badly managed queue5 Some windows/counters were not operational..6 Power breakdown...7 Computer/network connectivity failure..8 Others (Specify) Please specify the travel cost incurred in making a round trip to CTD Ofce (INR) Total travel cost incurred in availing service (number of trips X travel cost per trip) INR Please specify the travel time spent in making a round trip to CTD Ofce (Min.) Total travel time spent in availing service (number of trips X travel time per trip) Min. How many times did you log-in to avail online service? [NOT APPLICABLE FOR MANUAL USERS] Please see the previous question if the number is more than one, then ask: Why did you have to log-in more than once? [NOT APPLICABLE FOR MANUAL USERS] Service was not available as server was slow.1 Portal was undergoing maintenance..2 Templates had changed, therefore it had to be downloaded rst3 Others (Specify) What was the total time taken to complete transaction Online - it does not include time taken for data entry? (Min) [NOT APPLICABLE FOR MANUAL USERS] Do you think that the time taken to complete online transaction was excessive? Yes 1; No 2 29 D [NOT APPLICABLE FOR MANUAL USERS] Why do you think are the reasons for excessive time in online transactions? Server is slow.1 Processes are complex and time consuming2 Errors occur while uploading template3 Others (Specify) Please calculate the amount spent as salary/wages on total time spent in availing service: traveling time + waiting time + time for online transaction (man-hours spent X wage per man-hour) {INR} THIS DOES NOT INCLUDE TIME TAKEN FOR FILLING FORMS, PREPARATION OF SUPPORTING DOCUMENTS AND DATA ENTRY Service Charge paid to department for which you got a receipt? (INR) Service charge paid to Tax Consultant for facilitating service from CTD Ofce (INR) (NOT APPLICABLE IF DONE IN-HOUSE: PLEASE SEE 4D) What was the total payment18 made by you for availing the service? (INR)

18D.

19D.

20D. 21D. 22D. 23D. 24D. 25D.

26D. 27D. 28D.

29D.

30D. 31D. 32D.


____________

18 Includes a) service charge paid to intermediary/agency, b) amount paid to department for which receipt was given, and c) amount paid as bribe to department staff/functionaries

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Impact Assessment of Commercial Taxes Computerization 2010-Andhra Pradesh

33D.

Manual What was the total elapsed time in availing service - how long did it take for the Manual Process Process task to be completed, right from the date of applying to actually receiving the service applied for? (This does not include time taken for lling forms, preparation of Online Process Online Process supporting documents and data entry)? (Hours) IN CASE OF ONLINE USERS, TOTAL ELAPSED TIME IS THE TIME TAKEN TO COMPLETE THE TRANSACTION ONLINE PLUS TIME SPENT TO SUBMIT HARD COPIES TO CTD Total Total

34D. 35D.

Did you pay a bribe directly to Ofcials? Yes-1; No-2 Part E For what purpose did you pay the bribe indicated in the previous question? (Multiple responses) To avoid audit assessment by CT Department.1 To inuence functionaries to manipulate records in your favor..2 To expedite the process...3 Others (Specify)

E. OVERALL ASSESSMENT
On a 5 point scale (Dissatised-1; Somewhat dissatised-2; Neutral-3; Somewhat satised-4; Very satised-5) please rate the following attributes (Online services for Treatment Group and Manual services for Comparison Group) 1E 3E 4E FILING OF RETURNS Time and effort in ling returns 2E Cost incurred in ling returns Design and layout of forms (templates in case of online services) PROCURING STATUTORY FORMS Time and effort in procuring statutory forms 5E Cost incurred in procuring statutory forms COMMON ATTRIBUTES (Applicable For All Services) 6E 8E 10E 12E 14E 16E 18E 20E 22E 24E 26E 28E Overall quality of service19 Overall experience of availing service from CTD Condentiality and security of data Time and effort in accessing information Clarity and simplicity of processes and procedures Transparency21 in CTD Ability to inuence policies, rules and procedures through feedback Courtesy and helpfulness of Ofcials Complaint handling mechanism (including service provided by Call centre/Helpline) Queuing system at CTD Ofce Adherence to Citizen Charter26 7E 9E 11E 13E 15E 17E 19E 21E 23E 25E 27E Overall quality of governance20 Accuracy of transactions Predictability of outcome Accountability of Ofcials Knowledge of Ofcials Level of corruption22 Problem resolution23 Convenience of working hours24 Convenience of location of ofce (accessibility and ambience) Dependence on CTPs25 Durability and legibility of certicates/receipts

Among the above given factors please list the three factors that you consider the most important RECORD THE S.NO. OF THE FACTOR

_______________ 19

Quality of service is understood as fairness, speed of processing, accuracy of transactions, legibility and durability of certicates and printouts, convenience of obtaining service 20 Governance is understood as transparency, accountability and corruption-free working 21 Understanding and awareness of the basis on which decisions affecting you/other users are taken by ofcials 22 Very corrupt-1; Somewhat corrupt-2; Neutral-3; Somewhat less corrupt-4; Not at all corrupt-5 23 Mechanism to rectify inadvertent errors in forms/documents submitted by Dealers to CTD e.g. computational errors/wrong gures 24 Hours of service in case of online services 25 Very much dependant -1; Somewhat dependant -2; Neutral-3; Somewhat less dependant-4; Not at all dependant-5 26 Adherence of the time frame for service delivery (elapsed time) to that specied in citizens charter

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Impact Assessment of Commercial Taxes Computerization 2010-Andhra Pradesh

F. SUGGESTIONS27
1F. Please give your suggestions in improving online services: (Multiple Responses) Eliminate practice of submission of hard copy to CTD........1 Server speed should be increased....2 Maintenance of website should not be done during Ofce Hours of Traders/Tax Consultants.............3 CTD ofcials should be given adequate training, so that they can handle queries on online services efciently.........4 Provide templates(w.r.t. returns) that can perform data verication ofine.......5 Changes in processes/templates should be immediately communicated to dealers................6 Others (Specify) Please give your suggestions to increase use of online services: (Multiple Responses) Awareness campaigns on online services for dealers..1 Establishment of Common Service Centres to facilitate E-services to all dealers.......2 Online processes should be made much more user friendly and simple......3

2F.

Others (Specify)

ADDITIONAL INFORMATION: PLEASE ASK THE RESPONDENT IF HE/SHE WOULD LIKE TO MAKE ADDITIONAL COMMENTS. RECORD VERBATIM.

__________ 27

This part is for all users - manual and online

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Impact Assessment of Commercial Taxes Computerization 2010-Andhra Pradesh

Annexure D

Andhra Pradesh: Interview Schedule for CTP


Sl. No. State State Code G. IDENTIFICATION DETAILS District District Date of Interview (DD/MM) Code Location of Ofce Town/ Code Village
Group28
Mobile:

Respondents Name

Address with landmark

Rural..1 Urban.2

Phone
Land Line :

Division

Division Code

Treatment (online)..1

Interviewer Name Code Signature

Editor Name Code Signature

Supervisor Name Code Signature Comparison (manual)2 Distance from Circle (Km.)

Circle

Circle code

1B.

2B. 3B. 4B.

H. Prole of Tax Consultant Educational qualication of Tax Consultant FICA. - 1 LLB - 2 Others (Specify) Years of Experience as Tax Consultant What was the annual turnover in Financial Year: 200809 (INR) Major services provided to clients (only those Tax Service for which service charge is taken), service charge (average) SERVICE Registration 1; Filing Returns 2; Others Specify. TAX VAT -1; CST 2; Others (Specify) Number of staff in your organization who are involved in activities related to Commercial Taxes Is the Tax Consultant computer literate? Yes 1 No - 2 Has the Tax Consultant used any online E-Gov. service Yes 1 No - 2

Service Charge (INR) Manual Online

5B. 6B. 7B.

Part C

1C.

I. AWARENESS AND USAGE OF ONLINE SERVICES Are you aware of online services provided by Yes - 1 Commercial Taxes Department? No - 2 Part D

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Impact Assessment of Commercial Taxes Computerization 2010-Andhra Pradesh

2C.

Please specify the rst source of awareness about online services provided by Commercial Taxes Department

3C.

Which are the online services provided by Commercial Taxes Department? (Multiple Responses) Have you used any of the online services provided by Commercial Taxes Department? Please give details regarding online services used and frequency of use Frequency of Use Daily...1 Weekly....2 Fortnightly..3 Monthly. 4 Quarterly.5 Annually..6 Others (Specify) What are the reasons for using online service (s)
(Multiple Responses)

Newspaper..1 Television...2 Dealers........3 Other CTPs.........4 Commercial Tax Dep. Ofcial........5 Others (Specify) Application for Registration....1 Application for issue of statutory forms.2 Filing Returns..3 Information Dissemination......4
Yes 1

4C. 5C.

No 2

7C
Used/Not Yes-1 No-2 Yes-1 No-2
Yes-1

Online Service Filing Returns Application for Forms


Application for registration

Frequency

No-2 No-2 No-2

Seeking information Others (Specify)

Yes-1 Yes-1

6C.

PLEASE PROCEED TO PART D AFTER ANSWERING THIS QUESTION

Online process is faster ....1 Online process is more secure..2 Fewer errors in online process..3 Fewer visits to Commercial Taxes Department...4 Online process is more transparent.5 It is mandatory.6 Others (Specify) Do not have skills to use online services....1 Do not have access to hardware/software......2 Do not have access to internet....3 Unreliable power situation....4 Online process is prone to errors....5 Online process is not secure.......6 Online process is slow...7 Have to submit hard copy to Ofce.8 Others (Specify) B

7C.

What are the reasons for not using online service (Multiple responses)

J. TIME AND EFFORT AND COSTS OF AVAILING SERVICES Please provide the following details with reference to maximum of two services A that you have availed from Commercial Tax Department in last 90 days 36D. Services Availed in Last 90 Days: (Only Online services for Treatment Group and only Manual Services for Comparison Group) Filing Returns...1 Application of statutory forms...2 Application for Registration..3 Seeking information (including application tracking)4 12D 2

__________
28

As per the listing exercise

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Impact Assessment of Commercial Taxes Computerization 2010-Andhra Pradesh

37D. 38D.

Mode of service: Online 1; Manual 2 Was the online service availed mandatory/optional w.r.t client? Mandatory 1; Optional 2 [NOT APPLICABLE FOR MANUAL USERS] D-1: Time and Effort and Cost of Preparation of Documents for Filing Returns

39D.

How many man-hours were spent in completing various forms and preparing supporting documents for manual ling of returns? PLEASE NOTE THAT THIS COULD BE APPLICABLE FOR ONLINE USERS AS WELL - MANY OF THEM ARE REQUIRED TO FILE HARD COPIES, EVEN AFTER FILING RETURNS ONLINE How many man-hours were spent for data entry in online template? (NOT APPLICABLE FOR MANUAL USERS) Total man-hours spent for preparation of documents for ling returns (6D + 7D) Please calculate the amount spent as salary/wages for preparation of documents for ling returns (Total man-hours spent X wage per manhour) {INR} Cost of stationery29 and photo copies w.r.t ling returns {INR} Cost of access to Internet30 (INR) (NOT APPLICABLE FOR MANUAL USERS) Cost of Statutory Forms and other Forms including courier charges (INR) Total cost of preparation of documents for ling returns (INR) D- 2: Time and Effort and Cost of Availing Services From Commercial Taxes Department How many trips did you need to make for the service including trips for error correction? Purpose of each trip and time spent waiting (Including time spent in queue and transaction time at counter ) for availing service - (min) To submit documents...1 To collect certicate..2 To correct error in certicate/document issued by CTD..3 To correct errors in documents submitted by Dealer/Tax Consultant.........................................................4 To track application5 To seek information.........6 To fulll requirement of physical presence.7 Others (Specify) Trip I II III IV V Purpose Time Purpose Time

40D. 41D. 42D.

43D. 44D. 45D. 46D.

47D. 48D.

___________________ 29 30

Ledgers, CDs, printing paper, printing ink, carbon paper etc. Internet charges based on hours of internet used for this particular service

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Impact Assessment of Commercial Taxes Computerization 2010-Andhra Pradesh

49D.

Please see 12D if the number of trips is more than one, then ask: Why did you have to make more that one trip? It was required as per CTD procedure.............1 To follow up, as there was delay on the part of CTD to provide service..............................................................2 Could not avail service in previous visit (s) as there was a long queue................................................................3 Concerned functionary was not available............4 Counter was not operational..5 Documents/application submitted by me were incomplete6 Others (Specify) Do you think you had to wait excessively for availing service in any of the trips? Yes 1 No 2 17D Please specify the reasons for excessive wait Long queue......1 Ofcials of CTD are inefcient (slow in processing).2 Processes are too complex & takes lot of time to complete....3 Too many applicants at ofce..............4 Badly managed queue.............5 Some windows/counters were not operational6 Power breakdown........................7 Computer/network connectivity failure......8 Others (Specify) Please specify the travel cost incurred in making a round trip to CTD Ofce (INR) Total travel cost incurred in availing service (number of trips X travel cost per trip) INR Please specify the travel time spent in making a round trip to CTD Ofce (Min.) Total travel time spent in availing service (number of trips X travel time per trip) Min. How many times did you log-in to avail online service? [NOT APPLICABLE FOR MANUAL USERS] Please see the previous question if the number is more than one, then ask: Why did you have to log-in more than once? [NOT APPLICABLE FOR MANUAL USERS] Service was not available as server was slow....1 Portal was undergoing maintenance...2 Templates had changed, therefore it had to be downloaded rst3 Others (Specify) What was the total time taken to complete transaction Online - it does not include time taken for data entry? (Min) [NOT APPLICABLE FOR MANUAL USERS]

50D.

51D.

52D. 53D. 54D. 55D. 56D. 57D.

58D.

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Impact Assessment of Commercial Taxes Computerization 2010-Andhra Pradesh

59D.

Do you think that the time taken to complete online transaction was excessive? Yes 1; No 2 26D [NOT APPLICABLE FOR MANUAL USERS] Why do you think are the reasons for excessive time in online transactions? Server is slow...........1 Processes are complex and time consuming2 Errors occur while uploading template3 Others (Specify) Please calculate the amount spent as salary/wages on total time spent in availing service: traveling time + waiting time + time for online transaction (man-hours spent X wage per man-hour) {INR} THIS DOES NOT INCLUDE TIME TAKEN FOR FILLING FORMS, PREPARATION OF SUPPORTING DOCUMENTS AND DATA ENTRY Service Charge paid to CTD for which you got a receipt (INR) What was the total payment31 made by you for availing the service? (INR) What was the total elapsed time in availing service - how long did it take for the task to be completed, right from the date of applying to actually receiving the service applied for? (this does not include time taken for lling forms, preparation of supporting documents and data entry)? (Hours) IN CASE OF ONLINE USERS, TOTAL ELAPSED TIME IS THE TIME TAKEN TO COMPLETE THE TRANSACTION ONLINE PLUS TIME SPENT TO SUBMIT HARD COPIES TO CTD Did you pay a bribe directly to Ofcials? Yes-1; No-2 Part E For what purpose did you pay the bribe indicated in the previous question? (Multiple responses) To avoid audit assessment by CT Department..............1 To inuence functionaries to manipulate records in your favor..2 To expedite the process .........3 Others (Specify)

60D.

61D.

62D. 63D. 64D.

Manual Process Online Process Total

Manual Process Online Process Total

65D. 66D.

____________________ 31

Includes a) amount paid to department for which receipt was given, and b) amount paid as bribe to department staff/functionaries

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Impact Assessment of Commercial Taxes Computerization 2010-Andhra Pradesh

K. OVERALL ASSESSMENT On a 5 point scale (Dissatised-1; Somewhat dissatised-2; Neutral-3; Somewhat satised-4; Very satised-5) please rate the following attributes (Online services for Treatment Group and Manual services for Comparison Group) FILING OF RETURNS 1E. Time and effort in ling returns 2E. Cost incurred in ling returns 3E. Design and layout of forms (templates in case of online services) PROCURING STATUTORY FORMS 4E. Time and effort in procuring statutory forms 5E. Cost incurred in procuring statutory forms COMMON ATTRIBUTES (Applicable For All Services) 7E. Overall quality of governance33 6E. Overall quality of service32 8E. Overall experience of availing service from CTD 9E. Accuracy of transactions 10E. Condentiality and security of data 11E. Predictability of outcome 12E. Time and effort in accessing information 13E. Accountability of Ofcials 14E. Clarity and simplicity of processes and 15E. Knowledge of Ofcials procedures 16E. Transparency34 in CTD 17E. Level of corruption35 18E. Ability to inuence policies, rules and procedures 19E. Problem resolution36 through feedback 20E. Courtesy and helpfulness of Ofcials 21E. Convenience of working hours37 22E. Complaint handling mechanism (including 23E. Convenience of location of ofce service provided by Call centre/Helpline) (accessibility and ambience) 24E. Queuing system at CTD Ofce 25E. Durability and legibility of certicates/ receipts 26E. Adherence to Citizen Charter38 27E. Dependence on Ofcials39 28E. Among the above given factors please list the three factors that you consider the most important RECORD THE S.NO. OF THE FACTOR
L. SUGGESTIONS40 1F.

Please give your suggestions in improving online services: (Multiple Responses) Eliminate practice of submission of hard copy to CTD........................1 Server speed should be increased2 Maintenance of website should not be done during Ofce Hours of Traders/Tax Consultants..........3 CTD ofcials should be given adequate training, so that they can handle queries on online services efciently..4 Provide templates(w.r.t. returns) that can perform data verication ofine5 Changes in processes/templates should be immediately communicated to dealers6 Others (Specify)

____________________ 32 Quality of service is understood as fairness, speed of processing, accuracy of transactions, legibility and durability of certicates and printouts, convenience of obtaining service 33 34 35 36 37 38 39 40

Governance is understood as transparency, accountability and corruption-free working Understanding and awareness of the basis on which decisions affecting you/other users are taken by ofcials Very corrupt-1; Somewhat corrupt-2; Neutral-3; Somewhat less corrupt-4; Not at all corrupt-5 Mechanism to rectify inadvertent errors in forms/documents submitted by Dealers to CTD e.g. computational errors/wrong gures Hours of service in case of online services Adherence of the time frame for service delivery (elapsed time) to that specied in citizens charter Very much dependant -1; Somewhat dependant -2; Neutral-3; Somewhat less dependant-4; Not at all dependant-5 This part is for all users - manual and online

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Impact Assessment of Commercial Taxes Computerization 2010-Andhra Pradesh

2F.

Please give your suggestions to increase use of online services: (Multiple Responses) Awareness campaigns on online services for dealers..1 Establishment of Common Service Centres to facilitate E-services to all dealers2 Online processes should be made much more user friendly and simple...3 Others (Specify)

Additional Information: Please Ask the Respondent if He/She Would Like to Make Additional Comments. Record Verbatim.

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Impact Assessment of Commercial Taxes Computerization 2010-Andhra Pradesh

Annexure E

Field Work
At the Circle Level, two locations on the basis selected on their distance from Circle Ofce one far and the other near. List of Dealers in the selected locations was obtained from CTD Dealers were randomly selected from the list. Number of dealers selected was about 10% more than the number of dealers to be interviewed in that Ward as dealers who outsource entire processes to CTPs could not be included in the study. Listing exercise was carried out among selected dealers, which helped us in collecting information such as turnover, services availed, mode used, dependence on CTPs etc. Based on information gathered through listing exercise, Dealers were classied as treatment/ control group Similarly, CTPs were also classied as treatment/control group. Contact details of CTPs were collected through listing exercise among Dealers

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Impact Assessment of Commercial Taxes Computerization 2010-Andhra Pradesh

Annexure F

Andhra Pradesh: Dealers Using Optional Online Services

SECTION A: Identication Details


Table 1: Group wise frequency Group Treatment (Online) Comparison (Manual) Total Frequency 309 301 610 Percent 50.7 49.3 100.0

Table 2: Division and circle wise frequency Division Circle LTU Vengalrao Nagar Srinagar Colony Punjagutta Khairatabad Somajiguda Sanatnagar Jubilee Hills Tarnaka Total LTU (2) Tarnaka General Bazaar Circle Musheerabad Mahankali Street R P Road Gandhinagar Vidyanagar China Waltair Dwarkanagar Narisipatnam Gajuwaka Total Online 15 15 14 14 16 14 17 4 8 117 4 4 4 4 5 5 5 5 0 0 0 0 36 Manual 0 18 16 16 16 16 13 16 0 111 1 4 4 4 5 5 5 8 0 0 0 0 36

Punjagutta

Secunderabad

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Impact Assessment of Commercial Taxes Computerization 2010-Andhra Pradesh

Division

Abids

Circle LTU (3) Basheerbagh M J Market Narayanaguda Abids Sultan Bazaar Hyderguda Barakatpura Nampally Total LTU (5) Benz Circle

Online 4 4 4 4 4 4 4 4 4 36 7 7 7 7 7 7 42 9 9 9 9 36 6 6 6 6 6 6 6 42

Manual 4 4 4 4 4 4 4 4 4 36 7 7 7 7 7 7 42 7 9 9 9 34 6 6 6 6 6 6 6 42

Vijaywada-II

Autonagar Suryarao Pet Sitarampuram Vuyyuru Total LTU (4) Malakpet Afzalganj Begum Bazaar Total Daba Garden Anakapalli Suryabagh China Waltair Dwarkanagar Narisipatnam Gajuwaka Total

Charminar

Visakhapatnam

Table 3: Location and group wise frequency Location Online 309 100.0% 309 100.0% Manual 301 100.0% 301 100.0% Total 610 100.0% 610 100.0%

Total

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Impact Assessment of Commercial Taxes Computerization 2010-Andhra Pradesh

SECTION B: Dealer Prole


Table 4: Constitution of enterprise
Constitution of enterprise Online Manual Total

Proprietor Partnership Private Limited Company Total

254 82.2% 19 6.1% 36 11.7% 309 100.0%

253 84.1% 13 4.3% 35 11.6% 301 100.0%

507 83.1% 32 5.2% 71 11.6% 610 100.0%

Table 5: Type of business Type of business Manufacture Wholesale Online 53 17.2% 159 51.5% 68 Retail Export Hire purchase Work contract Leasing Hotels Food Drink Total 22.0% 3 1.0% 1 3% 16 5.2% .0 .0% 5 1.6% 4 1.3% 309 100.0% Manual 41 13.6% 155 51.5% 66 21.9% 4 1.3% 2 .7% 22 7.3% 1 .3% 4 1.3% 6 2.0% 301 100.0% Total 94 15.4% 314 51.5% 134 22.0% 7 1.1% 3 .5% 38 6.2% 1 .2% 9 1.5% 10 1.6% 610 100.0%

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Impact Assessment of Commercial Taxes Computerization 2010-Andhra Pradesh

Table 6: VAT registration Registered for VAT Yes Online 309 100.0% Total 309 100.0% Table 7: CST registration Registered for CST Yes No Total Online 78 25.2% 231 74.8% 309 100.0% Manual 51 16.9% 250 83.1% 301 100.0% Total 129 21.1% 481 78.9% 610 100.0% Manual 301 100.0% 301 100.0% Total 610 100.0% 610 100.0%

Table 8: Mode of maintenance of books of accounts Mode in which Books of Accounts are maintained within the organization Manual Computerized Total Online 4 1.3% 305 98.7% 309 100.0% Manual 9 3.0% 292 97.0% 301 100.0% Total 13 2.1% 597 97.9% 610 100.0%

Table 9: Number of staff involved in activities w.r.t Commercial Taxes Number of staff in the organization involved in activities related to Commercial Taxes 1 2 3 4 5 Total Online Manual Total

121 39.2% 128 41.4% 42 13.6% 17 5.5% 1 .3% 309 100.0%

131 43.5% 124 41.2% 32 10.6% 11 3.7% 3 1.0% 301 100.0%

252 41.3% 252 41.3% 74 12.1% 28 4.6% 4 .7% 610 100.0%

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Impact Assessment of Commercial Taxes Computerization 2010-Andhra Pradesh

SECTION C: Awareness and Usage of Online Services


Table 10: Awareness on online services Aware of online services of CTD Yes No Total Online 309 100.0% 0 .0% 309 100.0% Table 11: First source of awareness First source of awareness about online services Newspaper Television Other Dealers CTPs Commercial Taxes Department Ofcial Total Online 71 23.0% 36 11.7% 63 20.4% 31 10.0% 108 35.0% 309 100.0% Manual 55 26.7% 11 5.3% 43 20.9% 26 12.6% 71 34.5% 206 100.0% Total 126 24.5% 47 9.1% 106 20.6% 57 11.1% 179 34.8% 515 100.0% Manual 206 68.4% 95 31.6% 301 100.0% Total 515 84.4% 95 15.6% 610 100.0%

Table 12: Awareness on online services Online services of CTD Application for Registration Application for issue of forms Filing Returns Information Dissemination
Others

Online 234 75.7% 287 92.9% 171 55.3% 195 63.1%


4 1.3%

Manual 115 55.8% 162 78.6% 149 72.3% 18 8.7%


0 .0%

Total 349 449 320 213


4

Total

309

206

515

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Impact Assessment of Commercial Taxes Computerization 2010-Andhra Pradesh

Table 13: Usage of online services Used any of the online services provided by CTD Yes No Total Online 309 100.0% 0 .0% 309 100.0% Manual 0 .0% 206 100.0% 206 100.0% Total 309 60.0% 206 40.0% 515 100.0%

Table 14: Reasons for using online services Reasons for using e-services Online process is faste Online process is more secure Fewer errors in online process Fewer visits to commercial taxes department Online process is more transparent It is mandatory Total Online 233 75.4% 88 28.5% 107 34.6% 92 29.8% 94 30.4% 7 2.3% 309 Total 233 88 107 92 94 7 309

Table 15: Reasons for not using online services Reasons for not using e-services Do not have skills to use online services Do not have access to hardware/softwar Do not have access to internet Unreliable power situation Online process is prone to errors Online process is not secure Online process is slow Have to submit hard copy to ofce Total Manual 48 23.3% 4 1.9% 8 3.9% 9 4.4% 76 36.9% 78 37.9% 57 27.7% 101 49.0% 206 Total 48 4 8 9 76 78 57 101 206

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Impact Assessment of Commercial Taxes Computerization 2010-Andhra Pradesh

SECTION D: Time And Effort and Costs of Availing Services


Table 16: Services Availed in Last 90 Days and Mode of service Services Availed in Last 90 Days Obtaining statutory forms Total Online 309 100.0% 309 100.0% Manual 301 100.0% 301 100.0% Total 610 100.0% 610 100.0%

Table 17: Time and cost of Filing of Obtaining Statutory Form Obtaining Statutory Forms Change (C-M) Time and Cost of Availing Services From Commercial Taxes Department 1 0 -1 301 309 Manual Computerized Signicance

Number of trips N S.E. Mode

**

.000 1

.000 0

Comment: None of the online users visited CTD to obtain statutory forms. Clearly, online service has helped dealers in terms of reducing trips to CTD. Waiting time (Minutes) 22.7 NA N S.E. Mode Travel cost (INR) N S.E. Mode Travel time (Minutes) N S.E. Mode Number of times user had to log-in to avail online service N S.E. Mode Total time taken to complete transaction Online (Minutes) N S.E. Mode Amount spent as salary/wages on total time spent in availing service (INR) N S.E. Mode 301 .509 20

42.99
301 .958 40

NA

42.90
301 1.284 40

NA

NA

1.03
309 .011 1

NA

21.34
309 .407 20 9.67

26.75

-17.078

**

301 .721 19

309 .297 8

103

Impact Assessment of Commercial Taxes Computerization 2010-Andhra Pradesh

Manual Computerized Change (C-M) Signicance Obtaining Statutory Forms Comment: The difference is because online users did not have to visit CTD to obtain forms thus saving salary/ wages for waiting time and travel time

Service Charge paid to department (INR)


N S.E. Mode Service charge paid to Tax Consultant for facilitating service from CTD Ofce (INR) N S.E. Mode Amount paid as bribe (INR) N S.E. Mode Total payment made (INR) N S.E. Mode Total elapsed time in availing service (Hours) N S.E. Mode

.000
301

.000
309

.000
.000

.000
.000

.000
301

.000
309

.000 .000
.000 301

.000 .000
.000 309

.000 .000 .000


301

.000 .000 .000


309

.000 .000
1.0946

.000 .000
76.6146 75.52001 **

301 .02456 1.17

309 3.26583 48.33

Comment: The data shows that the time taken for availing service is signicantly higher in the case of online users. While in the manual mode it took about an hour to obtain statutory forms, in the online mode it took about three days.

OTHER TABLES: Time and Cost of Obtaining Statutory Forms


Table 18: Dependence on CTP Processes were related to the service outsourced No, it was done completely in-house Yes, it was partially done by CTP Total Table 19: Waiting time for availing service Waiting excessively for availing service in any of the trips Yes No Total Manual 23 7.6% 278 92.4% 301 100.0% Total 23 7.6% 278 92.4% 301 100.0% Online 309 100.0% 0 .0% 309 100.0% Manual 300 99.7% 1 .3% 301 100.0% Total 609 99.8% 1 .2% 610 100.0%

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Impact Assessment of Commercial Taxes Computerization 2010-Andhra Pradesh

Table 20: Excessive waiting time for availing service Reasons for excessive wait Long queue Too many applicants at ofce Total Manual 22 95.7% 1 4.3% 23 100.0% Total 22 95.7% 1 4.3% 23 100.0%

Table 21: Number of times user had to log-in for availing service Number of times log-in to avail online service 1 2 3 Total Online 300 97.1% 8 2.6% 1 .3% 309 100.0% Table 22: Number of times user had to log-in for availing service Reason for log-in more than once Service was not available as server was slow Total Online 9 100.0% 9 100.0% Total 9 100.0% 9 100.0% Total 300 97.1% 8 2.6% 1 .3% 309 100.0%

Table 23: Time taken to complete online transaction Time taken to complete online transaction was excessive Yes No Total Online 7 2.3% 302 97.7% 309 100.0% Total 7 2.3% 302 97.7% 309 100.0%

Table 24: Time taken to complete online transaction Reasons for excessive time in online transactions Server is slow Total Online 7 100.0% 7 100.0% Total 7 100.0% 7 100.0%

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Impact Assessment of Commercial Taxes Computerization 2010-Andhra Pradesh

Table 25: Bribe paid Bribe directly to Ofcials No Online 309 100.0% 309 100.0% Manual 301 100.0% 301 100.0% Total 610 100.0% 610 100.0%

Total

Time and Cost of Availing Services from Commercial Taxes Department (Filing Returns)
Table 26: Services Availed in Last 90 Days and Mode of service Services Availed in Last 90 Days Filing returns Application for Registration Seeking information Total Online 100 32.4% 31 10.0% 178 57.6% 309 100.0% Table 27: Time and cost of Filing of Returns Filing Returns Time and Cost of Preparation of Documents for Filing of Returns Man-hours were spent in compiling data N S.E. Mode Man-hours were spent for data entry in online template N S.E. Mode Total man-hours for preparation of documents N S.E. Mode Manual Computerized Change (C-M) Signicance Manual 205 68.1% 96 31.9% 0 .0% 301 100.0% Total 305 50.0% 127 20.8% 178 29.2% 610 100.0%

1.5249 205 .04565 1.50 NA

1.5596 100 .6510 2.0 .7015 100 .03632 .50 2.2611 100 .08449 1.50

.03472

NS

1.5205 205 .04610 1.50

.74061

**

Comment: Total man-hours spent in preparation of documents are signicantly higher for online dealers. This is because online dealers have to enter data in online template. 41.68 64.88 23.197 ** Salary/wages for preparation of documents

(INR)
N 205 100

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Impact Assessment of Commercial Taxes Computerization 2010-Andhra Pradesh

Filing Returns S.E. Mode

Manual 2.503 31

Computerized 3.876 31

Change (C-M)

Signicance

Comment: Salary/wages for preparation of documents is higher for online dealers. This is because manhours spent by online dealers, for preparation of documents, are higher than that of manual dealers. 57.25 62.01 4.761 NS Cost of stationery for preparation of

documents (INR)
N S.E. Mode Cost of access to Internet (INR) N S.E. Mode Filing Returns Cost of Statutory Forms and other Forms including courier charges (INR) N S.E. Mode 205 1.517 40 NA 100 4.727 60 21.39 100 1.159 20 Computerized 271.47 100 .449 270

Manual 273.63 205 .349 270

Change (C-M) -2.159

Signicance **

Comment: Manual users have spent signicantly more on stationery because they have to enter all details on paper. Online users, however, spent less because most details are entered on online template. 396.59 395.45 -1.135 NS Service charge paid to Tax Consultant for

preparation of documents(INR)
N 205 100 S.E. 17.606 23.458 Mode 500 500 Total cost of preparation of documents (INR) 769.1463 815.200 46.05366 NS N 205 100 S.E. 18.60581 23.51957 Mode 343.00 873.00 Comment: With respect to total cost of preparation of documents, there isnt any signicant difference between the two modes of service delivery. Time and Cost of Availing Services From Commercial Taxes Department Number of trips 1 1 0 NS N 205 100 S.E. .000 .000 Mode 1 1 Comment: Both manual and online users have to make at least one trip to CTD ofce. 31.32 37.19 5.873 Waiting time (Minutes) N S.E. Mode 205 .910 25 100 1.291 35 **

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Impact Assessment of Commercial Taxes Computerization 2010-Andhra Pradesh

Filing Returns

Manual

Computerized

Change (C-M)

Signicance

Comment: Waiting time is higher in the case of online users. This is despite the fact that hard copies of returns submitted by online users are not scrutinized. 43.36 37.16 -6.201 ** Travel cost (INR) N S.E. Mode 205 1.151 40 43.00 205 1.880 30 30 NA 100 1.737 40 39.52 100 1.452

Travel time (Minutes)


N S.E. Mode Number of times user had to log-in to avail online service N S.E. Mode Total time taken to complete transaction Online (Minutes) N S.E. Mode Amount spent as salary/wages on total time spent in availing service (INR) N S.E. Mode

-3.475

NS

1.07 100 .026 1 35.40 100 1.171 35 51.54 100 1.851 36

NA

30.79 205 1.059 29

20.755

**

Comment: The difference seen is mainly because online users have to submit hard copy to CTD for which they have to make at least one trip and also spent time for online transaction.

Service Charge paid to department (INR)


N S.E. Mode Service charge paid to Tax Consultant for facilitating service from CTD Ofce (INR) N S.E. Mode Amount paid as bribe (INR) N S.E. Mode

0 205 0 0 0 205 0 0 0 205 0 0 0

0 100 0 0 0 100 0 0 0 100 0 0 0

Total payment made (INR)

108

Impact Assessment of Commercial Taxes Computerization 2010-Andhra Pradesh

Filing Returns Manual Computerized Change (C-M) Signicance N 205 100 S.E. 0 0 Mode 0 0 Time in availing service through Manual .5173 .6201 .10283 ** process (Hours) N 205 100 S.E. .01519 .02191 Mode .41 .58 Time in availing service through Online NA .5895 process (Hours) N 100 S.E. .01984 Mode .58 Total elapsed time in availing service (Hours) .5173 1.1979 .68063 ** N 205 100 S.E. .01519 .03584 Mode .41 .91 Comment: Total elapsed time for availing service is signicantly higher in the case of online users. This is because online users have to submit hard copy of returns after ling returns online.

OTHER TABLES: Time and Cost of Filing Returns


Table 28: Dependence on CTP Processes related to the service outsourced? No, it was done completely in-house Yes, it was partially done by CTP Total Online 25 25.0% 75 75.0% 100 100.0% Table 29: Dependence on CTP Reasons for depending on CTP Due to lack of sufcient knowledge on processes To ensure accuracy of data given to department Want to avoid interface with Dep. ofcials Do not want to spent time on this Total Online 26 34.7% 52 69.3% 23 30.7% 5 6.7% 75 Manual 33 22.1% 124 83.2% 61 40.9% 11 7.4% 149 Total 59 176 84 16 224 Manual 56 27.3% 149 72.7% 205 100.0% Total 81 26.6% 224 73.4% 305 100.0%

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Impact Assessment of Commercial Taxes Computerization 2010-Andhra Pradesh

Table 30: Waiting time for availing service Waiting excessively for availing service in any of the trips Online 17 17.0% 83 83.0% 100 100.0% Table 31: Excessive waiting time for availing service Reasons for excessive wait Long queue Ofcials of CTD are inefcient (slow in processing) Processes are too complex & take lot of time to complete Too many applicants at ofce Power breakdown Total Online 9 52.9% 2 11.8% 4 23.5% 2 11.8% 0 .0% 17 100.0% Manual 30 69.8% 7 16.3% 1 2.3% 4 9.3% 1 2.3% 43 100.0% Total 39 65.0% 9 15.0% 5 8.3% 6 10.0% 1 1.7% 60 100.0% Manual 43 21.0% 162 79.0% 205 100.0% Total 60 19.7% 245 80.3% 305 100.0%

Yes No Total

Table 32: Number of times user had to log-in for availing service Number of times log-in to avail online service 1 2 Total Online 93 93.0% 7 7.0% 100 100.0% Total 93 93.0% 7 7.0% 100 100.0%

Table 33: Number of times user had to log-in for availing service Reason for log-in more than once Service was not available as server was slow Total Online 7 100.0% 7 100.0% Total 7 100.0% 7 100.0%

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Impact Assessment of Commercial Taxes Computerization 2010-Andhra Pradesh

Table 34: Time taken to complete online transaction Time taken to complete online transaction was excessive Yes No Total Online 13 13.0% 87 87.0% 100 100.0% Total 13 13.0% 87 87.0% 100 100.0%

Table 35: Time taken to complete online transaction Reasons for excessive time in online transactions Server is slow Processes are complex and time consuming Others Total Online 11 84.6% 1 7.7% 1 7.7% 13 100.0% Total 11 84.6% 1 7.7% 1 7.7% 13 100.0%

Table 36: Bribe paid Paid bribe directly to Ofcials? No Total Online 100 100.0% 100 100.0% Manual 205 100.0% 205 100.0% Total 305 100.0% 305 100.0%

SECTION E: Overall Assessment


Table 37: Overall Assessment Overall Assessment Time and effort in ling returns N S.E. Cost incurred in ling returns N S.E. Design and layout of forms (templates in case of online mode) N Computerized 4.06 117 0.063 3.95 118 0.075 3.81 304 Manual 3.83 268 0.039 3.76 266 0.046 3.76 25 Change (C-M) 0.231 Sig. **

0.19

**

0.046

NS

111

Impact Assessment of Commercial Taxes Computerization 2010-Andhra Pradesh

Overall Assessment S.E. Time and effort in procuring statutory forms N S.E. Cost incurred in procuring statutory forms N S.E. Overall quality of service N S.E. Overall quality of governance N S.E. Overall experience of availing service from CTD N S.E. Accuracy of transactions N S.E. Condentiality and security of data N S.E. Predictability of outcome N S.E. Time and effort in accessing information N S.E. Accountability of Ofcials N S.E Clarity and simplicity of processes and procedures N S.E Knowledge of Ofcials N S.E. Transparency in CTD N S.E. Level of corruption

Computerized 0.038 3.91 309 0.04 3.63 309 0.043 3.87 309 0.044 3.92 309 0.048 3.73 309 0.046 3.84 309 0.047 3.57 309 0.049 3.77 309 0.046 3.79 309 0.044 3.67 309 0.05 3.76 309 0.05 3.94 309 0.048 3.76 308 0.045 3.81

Manual 0.105 3.72 301 0.036 3.42 300 0.04 3.88 300 0.043 4.07 301 0.046 3.62 301 0.043 3.83 301 0.041 3.78 301 0.044 3.75 301 0.046 3.76 301 0.044 3.88 301 0.049 3.77 301 0.046 3.98 301 0.047 3.77 301 0.046 3.74

Change (C-M)

Sig.

0.185

**

0.208

**

-0.006

NS

-0.151

**

0.11

NS

0.011

NS

-0.211

**

0.026

NS

0.029

NS

-0.217

**

-0.007

NS

-0.041

NS

-0.008

NS

0.067

NS

112

Impact Assessment of Commercial Taxes Computerization 2010-Andhra Pradesh

Overall Assessment N S.E. Ability to inuence policies, rules and procedures through feedback N S.E. Problem resolution N S.E. Courtesy and helpfulness of Ofcials N S.E. Convenience of working hours N S.E. Complaint handling mechanism N S.E. Convenience of location of ofce N S.E. Queuing system at CTD Ofce N S.E. Dependence on CTPs N S.E. Adherence to Citizen Charter N S.E. Durability and legibility of certicates/ receipts N S.E.

Computerized 309 0.044 3.87 308 0.042 3.74 308 0.047 3.79 309 0.047 3.92 308 0.045 3.72 309 0.048 4.28 308 0.049 3.8 309 0.048 4.09 302 0.043 3.72 309 0.048 4 309 0.044

Manual 295 0.044 3.87 300 0.042 3.71 301 0.048 3.83 301 0.043 3.89 301 0.043 3.82 299 0.049 4.4 301 0.043 3.68 301 0.048 4.14 300 0.04 3.72 297 0.045 4.06 301 0.043

Change (C-M)

Sig.

NS

0.029

NS

-0.038

NS

0.035

NS

-0.101

NS

-0.116

0.115

-0.047

NS

0.005

NS

-0.063

NS

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Impact Assessment of Commercial Taxes Computerization 2010-Andhra Pradesh

Composite Score
Table 38: Composite Score
Respondents who Considered Factor to be Among Three Most Important Column No. Factor a Average of Individual Scores Improvement

c Computerized

F Weighted Score (Column e X Column b) 0.001848 0.00361 0.000966 0.0037 0.014976 -0.00014 -0.00453 0.00561 0.000539 -0.01161 0.001638 0.001247 -0.01237 -0.00044 -0.00131 -0.00052 0.00335 0 0.001798 -0.00156 0.000595 -0.00434 -0.00046 0.00437 -9.4E-05 0.000165

Number Percentage (Column a/ Total of Column a) 14 35 38 36 131 43 55 93 89 101 116 79 104 116 59 119 91 48 114 75 32 78 7 70 4 60 .8% 1.9% 2.1% 2.0% 7.2% 2.3% 3.0% 5.1% 4.9% 5.5% 6.3% 4.3% 5.7% 6.3% 3.2% 6.5% 5.0% 2.6% 6.2% 4.1% 1.7% 4.3% .4% 3.8% .2% 3.3%

Manual Difference (Column c Column d) 3.83 3.76 3.76 3.72 3.42 3.88 4.07 3.62 3.83 3.78 3.75 3.76 3.88 3.77 3.98 3.77 3.74 3.87 3.71 3.83 3.89 3.82 4.4 3.68 4.14 3.72 0.231 0.19 0.046 0.185 0.208 -0.006 -0.151 0.11 0.011 -0.211 0.026 0.029 -0.217 -0.007 -0.041 -0.008 0.067 0 0.029 -0.038 0.035 -0.101 -0.116 0.115 -0.047 0.005

Time and effort in ling returns Cost incurred in ling returns Design and layout of forms (templates in case of online mode) Time and effort in procuring statutory forms Cost incurred in procuring statutory forms Overall quality of service Overall quality of governance Overall experience of availing service from CTD Accuracy of transactions Condentiality and security of data Predictability of outcome Time and effort in accessing information Accountability of Ofcials Clarity and simplicity of processes and procedures Knowledge of Ofcials Transparency in CTD Level of corruption Ability to inuence policies, rules and procedures through feedback Problem resolution Courtesy and helpfulness of Ofcials Convenience of working hours Complaint handling mechanism Convenience of location of ofce Queuing system at CTD Ofce Dependence on CTPs Adherence to Citizen Charter

4.06 3.95 3.81 3.91 3.63 3.87 3.92 3.73 3.84 3.57 3.77 3.79 3.67 3.76 3.94 3.76 3.81 3.87 3.74 3.79 3.92 3.72 4.28 3.8 4.09 3.72

Durability and legibility of certicates/receipts Total (Sum of column)

23 1830

1.3% 100.0%

4.06

-0.063

-0.00082 0.006219

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Impact Assessment of Commercial Taxes Computerization 2010-Andhra Pradesh

SECTION F: Suggestions
Table 39: Suggestions for improving online services Suggestions for improving online services (Multiple Responses) Eliminate practice of submission of hard copy of CTD Server speed should be increased Tax consultants should be allowed to make E-payment on behalf of their clients through Consultants Internet Banking A/C Maintenance of website should not be done during ofce hour CTD ofcials should be given adequate training, so that they can handle queries on online services efciently Involve more banks in e-payment Changes in processes/templates should be immediately communicated to dealers Total N 587 230 3 208 74 13 2 1117 Percent 52.6% 20.6% .3% 18.6% 6.6% 1.2% .2% 100.0% Percent of Cases 96.2% 37.7% .5% 34.1% 12.1% 2.1% .4%

Table 40: Suggestions for increase usage of online services Suggestions to increase usage of e-services (Multiple Responses) Awareness campaigns on online services for dealers Establishment of common service centres to facilitate e-services to all dealers Online processes should be made much more user friendly and simple Total N 588 177 347 1112 Percent 52.9% 15.9% 31.2% 100.0% Percent of Cases 96.4% 29.0% 56.9%

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Impact Assessment of Commercial Taxes Computerization 2010-Andhra Pradesh

Annexure G Andhra Pradesh: CTPs Using Optional Online Services SECTION A: Identication Details
Table 1: Group wise frequency Group Treatment (Online) Comparison (Manual) Total Frequency 101 102 203 Table 2: Division and circle wise frequency Division Circle LTU Vengalrao Nagar Srinagar Colony Punjagutta Khairatabad Somajiguda Sanatnagar Jubilee Hills Total LTU (2) Tarnaka General Bazaar Circle Musheerabad Mahankali Street R P Road Gandhinagar Vidyanagar Total LTU (3) Basheerbagh M J Market Narayanaguda Abids Sultan Bazaar Hyderguda Nampally Total Treatment (Online) 6 3 3 13 5 2 2 6 40 6 4 0 0 0 1 3 14 2 2 1 7 3 3 1 19 Comparison (Manual) 8 1 2 5 2 3 4 4 29 3 1 3 4 2 5 4 3 25 3 4 3 2 5 1 1 19 Percent 49.8 50.2 100.0

Punjagutta

Secunderabad

Abids

116

Impact Assessment of Commercial Taxes Computerization 2010-Andhra Pradesh

Division

Circle LTU (5) Benz Circle Autonagar Suryarao Pet Sitarampuram Vuyyuru Total LTU (4) Malakpet Total Afzalganj Daba Garden Anakapalli Suryabagh China Waltair Dwarkanagar Narisipatnam Gajuwaka Total

Vijaywada-II

Charminar

Treatment (Online) 2 1 2 2 2 2 11 1 2 3 2 2 2 2 2 2 2 14

Comparison (Manual) 2 2 2 2 2 2 12 2 2 1 2 2 2 2 2 2 2 15

Visakhapatnam

SECTION B: CTP Prole


Table 4: Education of CTP Educational qualication of Tax Consultant CA LLB B Com Total Treatment (Online) 62 61.4% 38 37.6% 1 1.0% 101 100.0% Comparison (Manual) 49 48.0% 48 47.1% 5 4.9% 102 100.0% Total 111 54.7% 86 42.4% 6 3.0% 203 100.0%

Table 5: Years of experience of CTP Years of Experience as Tax Consultant 1-5 6 - 10 11 - 15 16 - 25 Total Treatment (Online) 27 26.7% 57 56.4% 13 12.9% 4 4.0% 101 100.0% Comparison(Manual) 3 3.0% 55 53.9% 37 36.3% 7 7.0% 102 100.0% Total 30 14.9% 112 55.2% 50 24.6% 11 5.0% 203 100.0%

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Impact Assessment of Commercial Taxes Computerization 2010-Andhra Pradesh

Table 6: Number of staff involved in activities w.r.t Commercial Taxes Number of staff in the organization involved in activities related to Commercial Taxes 1 2 3 4 5 Total Treatment (Online) 50 49.5% 38 37.6% 8 7.9% 5 5.0% 0 .0% 101 100.0% Table 7: Computer literacy of CTP Tax Consultant computer literate Yes No Total Treatment (Online) 101 100.0% 0 .0% 101 100.0% Comparison (Manual) 98 96.1% 4 3.9% 102 100.0% Total 199 98.0% 4 2.0% 203 100.0% Comparison (Manual) 39 38.2% 48 47.1% 9 8.8% 3 2.9% 3 2.9% 102 100.0% Total 89 43.8% 86 42.4% 17 8.4% 8 3.9% 3 1.5% 203 100.0%

Table 8: Experience in using online services Tax Consultant used any online e-Gov. service Yes No Total Treatment (Online) 101 100.0% 0 .0% 101 100.0% Comparison (Manual) 30 30.6% 68 69.4% 98 100.0% Total 131 65.8% 68 34.2% 199 100.0%

SECTION C: Awareness And Usage of Online Services


Table 9: Awareness on online services Aware about online services provided by Commercial Taxes Department Yes No Total Treatment (Online) 101 100.0% 0 .0% 101 100.0% Comparison (Manual) 100 98.0% 2 2.0% 102 100.0% Total 201 99.0% 2 1.0% 203 100.0%

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Impact Assessment of Commercial Taxes Computerization 2010-Andhra Pradesh

Table 10: First source of awareness First source of awareness about online services Treatment (Online) 20 19.8% 10 9.9% 7 6.9% 20 19.8% 44 43.6% 101 100.0% Comparison (Manual) 11 11.0% 14 14.0% 9 9.0% 18 18.0% 48 48.0% 100 100.0% Total 31 15.4% 24 11.9% 16 8.0% 38 18.9% 92 45.8% 201 100.0%

Newspaper Television Dealers Other CTP Commercial Tax Dep. Ofcial Total

Table 11: Awareness on online services e-Services of CTD Application for Registration Application for issue of statutory forms Filing Returns Information Dissemination Total Treatment (Online) 97 96.0% 100 99.0% 99 98.0% 78 77.2% 101 Comparison (Manual) 71 71.0% 92 92.0% 73 73.0% 20 20.0% 100 Total 168 192 172 98 201

Table 12: Usage of online services Used any e-Services provided by CTD Yes No Total Treatment (Online) 101 100.0% 0 .0% 101 100.0% Comparison (Manu al) 0 .0% 100 100.0% 100 100.0% Total 101 50.2% 100 49.8% 201 100.0%

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Impact Assessment of Commercial Taxes Computerization 2010-Andhra Pradesh

Table 13: Reasons for using online services Reasons for using e-Services Online process is faster Online process is more secure Fewer errors in online process Fewer visits to commercial taxes department Online process is more transparent It is mandatory Total Treatment (Online) 51 50.5% 25 24.8% 59 58.4% 30 29.7% 42 41.6% 3 3.0% 101 Total 51 25 59 30 42 3 101

Table 14: Reasons for not using online services Reasons for not using e-Services Do not have skills to use online services Do not have access to hardware/software Do not have access to internet Unreliable power situation Online process is prone to errors Online process is not secure Online process is slow Have to submit hard copy to ofce Total Comparison (Manual) 15 15.0% 12 12.0% 16 16.0% 44 44.0% 42 42.0% 37 37.0% 48 48.0% 40 40.0% 100 Total 15 12 16 44 42 37 48 40 100

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Impact Assessment of Commercial Taxes Computerization 2010-Andhra Pradesh

SECTION D: Time and Effort and Costs of Availing Services


Table 15: Services Availed in Last 90 Days and Mode of service Services availed in last 90 days Application of statutory forms Total Treatment (Online) 101 100.0% 101 100.0% Comparison (Manual) 102 100.0% 102 100.0% Total 203 100.0% 203 100.0%

Table 16: Time and cost of Filing of Obtaining Statutory Forms Obtaining Statutory Forms Change (C-M) Time and Cost of Availing Services From Commercial Taxes Department Number of trips 0 1 -1 N 101 102 S.E. 0 0 Mode 0 1 Comment: None of the online users visited CTD to obtain statutory forms. Clearly, online service has helped dealers in terms of reducing trips to CTD. Waiting time (Minutes) NA 22.6 N 102 S.E. . 0.934 Mode 15 Travel cost (INR) NA 47.28 N 102 S.E. . 1.735 Mode 50 Travel time (Minutes) NA 45.49 N 102 S.E. . 1.577 Mode 50 Number of times user had to log-in to avail online 1.04 NA service N 101 S.E. 0.02 . Mode 1 Total time taken to complete transaction Online 20.35 NA (Minutes) N 101 S.E. 0.672 . Mode 20 Computerized Manual Signicance

**

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Impact Assessment of Commercial Taxes Computerization 2010-Andhra Pradesh

Obtaining Statutory Forms

Computerized

Manual

Change (C-M)

Signicance

Amount spent as salary/wages on total time spent 8.16 26.64 in availing service (INR) -18.479 ** N 101 102 S.E. 0.331 0.948 Mode 8 17 Comment: The difference is because online users did not have to visit CTD to obtain forms thus saving salary/ wages for waiting time and travel time Service Charge paid to department (INR) 0 0 N 101 102 S.E. 0 0 Mode 0 0 Amount paid as bribe (INR) 0 0 N 101 102 S.E. 0 0 Mode 0 0 Total payment made (INR) 0 0 N 101 102 S.E. 0 0 Mode 0 0 Total elapsed time in availing service (Hours) 88.6123 1.1353 87.47696 ** N 101 102 S.E. 6.433 .03431 Mode 48.41 1.08 Comment: The data shows that the time taken for availing service is signicantly higher in the case of online users. While in the manual mode it took about an hour to obtain statutory forms, in the online mode it took about three and a half days.

OTHER TABLES: Time And Cost of Obtaining Statutory Forms


Table 17: Waiting time for availing service Had to wait excessively for availing service in any of the trips Comparison (Manual) 26 25.5% 76 74.5% 102 100.0% Total 26 25.5% 76 74.5% 102 100.0%

Yes No Total

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Impact Assessment of Commercial Taxes Computerization 2010-Andhra Pradesh

Table 18: Excessive waiting time for availing service Reasons for excessive wait Long queue Processes are too complex & take lot of time to complete Total Comparison (Manual) 25 96.2% 1 3.8% 26 100.0% Table 19: Number of times user had to log-in for availing service Number of times log-in to avail online service 1 2 Total Treatment (Online) 97 96.0% 4 4.0% 101 100.0% Table 20: Number of times user had to log-in for availing service Reasons to log-in more than once Service was not available as server was slow Total Treatment (Online) 4 100.0% 4 100.0% Total 4 100.0% 4 100.0% Total 97 96.0% 4 4.0% 101 100.0% Total 25 96.2% 1 3.8% 26 100.0%

Table 21: Time taken to complete online transaction Time taken to complete online transaction was excessive Yes No Total Treatment (Online) 6 5.9% 95 94.1% 101 100.0% Total 6 5.9% 95 94.1% 101 100.0%

Table 22: Time taken to complete online transaction Reasons for excessive time Server is slow Total Treatment (Online) 6 100.0% 6 100.0% Total 6 100.0% 6 100.0%

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Impact Assessment of Commercial Taxes Computerization 2010-Andhra Pradesh

Table 23: Bribe paid Paid a bribe directly to ofcials Yes No Total Treatment (Online) 0 .0% 101 100.0% 101 100.0% Table 24: Purpose of bribes Purpose of the bribe To inuence functionaries to manipulate records in your favor Total Comparison (Manual) 5 100.0% 5 100.0% Total 5 100.0% 5 100.0% Comparison (Manual) 5 4.9% 97 95.1% 102 100.0% Total 5 2.5% 198 97.5% 203 100.0%

Table 25: Services Availed in Last 90 Days and Mode of service Services availed in last 90 days Filing Returns Application for Registration Total Online 31 21 52 Manual 57 45 102 Total 88 66 154

Filing Returns

Change Signicance (C-M) Time and Cost of Preparation of Documents for Filing of Returns Man-hours were spent in compiling data 1.3023 1.6442 -0.34195 ** N 31 57 S.E. 0.09976 0.10215 Mode 1.00 2.00 Man-hours were spent for data entry in online template 0.751 NA N 31 S.E. 0.03881 . Mode 0.50 Total man-hours for preparation of documents 2.0532 1.6442 0.40902 ** N 31 57 S.E. 0.11328 0.10215 Mode 2.16 2.00 Comment: Total man-hours spent in preparation of documents are signicantly higher for online dealers. This is because online dealers have to enter data in online template.

Table 26: Time and cost of Filing of Returns Computerized Manual

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Impact Assessment of Commercial Taxes Computerization 2010-Andhra Pradesh

Filing Returns

Computerized

Manual

Salary/wages for preparation of documents (INR) 57.55 39.81 ** N 31 57 S.E. 5.45 2.611 Mode 28(a) 42.00 Comment: Salary/wages for preparation of documents is higher for online dealers. This is because man-hours spent by online dealers, for preparation of documents, are higher than that of manual dealers. Cost of stationery for preparation of documents (INR) 50.48 54.56 -4.078 * N 31 57 S.E. 1.969 1.332 Mode 40 50.00 Cost of access to Internet (INR) 18.71 NA N 31 S.E. 1.182 Mode 20.00 Cost of Statutory Forms and other Forms including 272.84 257.18 15.663 NS courier charges (INR) N 31 57 S.E. 0.981 7.25 Mode 268 270.00 Total cost of preparation of documents (INR) 400.55 351.75 48.794 ** N 31 57 S.E. 6.091 9.403 Mode 378.00 362.00 Comment: Total cost of preparation of documents is signicantly higher in the case of online users. This is mainly because of data entry. Time and Cost of Availing Services From Commercial Taxes Department Number of trips 1 1 0 NS N 31 57 S.E. 0 0 Mode 1.00 1.00 Comment: Both manual and online users have to make at least one trip to CTD ofce. Waiting time (Minutes) 19.52 32.37 -12.852 ** N 31 57 S.E. 1.339 2.026 Mode 20.00 30.00 Comment: Waiting time is higher in the case of manual users. This is because hard copies of returns submitted by online users are not scrutinized whereas returns submitted by manual users are scrutinized. Travel cost (INR) 43.39 48.04 -4.648 NS N 31 57 S.E. 2.805 2.467 Mode 40(a) 50.00 Travel time (Minutes) 37.1 45.88 -8.78 ** N 31 57 S.E. 1.923 2.264

Change (C-M) 17.741

Signicance

125

Impact Assessment of Commercial Taxes Computerization 2010-Andhra Pradesh

Filing Returns

Computerized

Manual

Change (C-M)

Signicance

Mode 30.00 50.00 Number of times user had to log-in to avail online 1.13 NA service N 31 S.E. 0.061 . Mode 1.00 Total time taken to complete transaction Online 33.71 NA (Minutes) N 31 S.E. 1.781 . Mode 35.00 Amount spent as salary/wages on total time spent in 40.74 31.46 9.286 ** availing service (INR) N 31 57 S.E. 2.663 1.408 Mode 40.00 38.00 Comment: The difference seen is mainly because online users have to submit hard copy to CTD for which they have to make at least one trip and also spent time for online transaction. Service Charge paid to department (INR) 0 0 N 31 57 S.E. 0 0 Mode 0.00 0.00 Amount paid as bribe (INR) 0 0 N 31 57 S.E. 0 0 Mode 0.00 0.00 Total payment made (INR) 0 0 N 31 57 S.E. 0 0 Mode 0.00 0.00 Time in availing service through Manual process 0.3213 0.5396 -0.21836 ** (Hours) N 31 57 S.E. 0.02226 0.03327 Mode 0.33 0.50 Time in availing service through Online process 0.5587 NA (Hours) N 31 S.E. 0.0298 Mode 0.58 Total elapsed time in availing service (Hours) 0.88 0.5396 0.34035 ** N 31 57 S.E. 0.03564 0.03327 Mode 0.74 0.50 Comment: Total elapsed time for availing service is signicantly higher in the case of online users. This is because online users have to submit hard copy of returns after ling returns online.

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Impact Assessment of Commercial Taxes Computerization 2010-Andhra Pradesh

OTHER TABLES: Time and Cost of Filing Returns


Table 27: Waiting time for availing service Had to wait excessively for availing service in any of the trips Yes No Total Treatment (Online) 3 9.7% 28 90.3% 31 100.0% Comparison (Manual) 8 14.0% 49 86.0% 57 100.0% Total 11 12.5% 77 87.5% 88 100.0%

Table 28: Excessive waiting time for availing service Reasons for excessive wait Long queue Ofcials of CTD are inefcient (slow in processing) Processes are too complex & take lot of time to complete Badly managed queue Total Treatment (Online) 3 100.0% 0 .0% 0 .0% 0 .0% 3 100.0% Comparison (Manual) 5 62.5% 1 12.5% 1 12.5% 1 12.5% 8 100.0% Total 8 72.7% 1 9.1% 1 9.1% 1 9.1% 11 100.0%

Table 29: Number of times user had to log-in for availing service Number of times log-in to avail online service 1 2 Total Treatment (Online) 27 87.1% 4 12.9% 31 100.0% Total 27 87.1% 4 12.9% 31 100.0%

Table 30: Number of times user had to log-in for availing service Reasons to log-in more than once Service was not available as server was slow Templates had changed, therefore it had to be downloaded r Total Treatment (Online) 2 50.0% 2 50.0% 4 100.0% Total 2 50.0% 2 50.0% 4 100.0%

127

Impact Assessment of Commercial Taxes Computerization 2010-Andhra Pradesh

Table 31: Time taken to complete online transaction Taken to complete online transaction was excessive Yes No Total Treatment (Online) 4 12.9% 27 87.1% 31 100.0% Total 4 12.9% 27 87.1% 31 100.0%

Table 32: Time taken to complete online transaction Reasons for excessive time Server is slow Errors occur while uploading template Total Treatment (Online) 3 75.0% 1 25.0% 4 100.0% Total 3 75.0% 1 25.0% 4 100.0%

Table 33: Bribe paid Paid a bribe directly to ofcials Yes No Total Treatment (Online) 1 3.2% 30 96.8% 31 100.0% Comparison (Manual) 1 1.8% 56 98.2% 57 100.0% Total 2 2.3% 86 97.7% 88 100.0%

Table 34: Purpose of bribes Purpose of bribes Treatment (Online) 1 100.0% 1 100.0% Comparison (Man ual) 1 100.0% 1 100.0% Total 2 100.0% 2 100.0%

To inuence functionaries to manipulate records in your favor Total

128

Impact Assessment of Commercial Taxes Computerization 2010-Andhra Pradesh

SECTION E: Overall Assessment


Table 35: Overall Assessment Overall assessment Time and effort in ling returns N S.E. Cost incurred in ling returns N S.E. Design and layout of forms (templates in case of online N S.E. Time and effort in procuring statutory forms N S.E. Cost incurred in procuring statutory forms N S.E. Overall quality of service N S.E. Overall quality of governance N S.E. Overall experience of availing service from CTD N S.E. Accuracy of transactions N S.E. Condentiality and security of data N S.E. Predictability of outcome N S.E. Time and effort in accessing information N S.E. Accountability of ofcials N S.E Computerized 3.78 40 0.104 3.8 41 0.106 3.91 98 0.067 3.9 101 0.046 3.64 101 0.062 4.01 101 0.07 3.75 101 0.062 3.84 101 0.064 3.76 101 0.073 3.88 101 0.079 3.91 101 0.085 3.82 101 0.076 4.11 100 0.075 Manual 3.98 101 0.053 3.59 101 0.069 3.79 14 0.114 3.98 102 0.056 3.82 102 0.078 3.88 102 0.07 3.72 102 0.072 3.77 102 0.085 3.85 100 0.085 3.73 102 0.077 3.8 102 0.08 3.84 101 0.088 3.77 102 0.083 Change (C-M) -0.205 Signicance NS

0.211

0.122

NS

-0.079

NS

-0.18

0.128

NS

0.037

NS

0.067

NS

-0.088

NS

0.156

NS

0.107

NS

-0.02

NS

0.335

**

129

Impact Assessment of Commercial Taxes Computerization 2010-Andhra Pradesh

Overall assessment Clarity and simplicity of processes and procedures N S.E Knowledge of ofcials N S.E. Transparency in CTD N S.E. Level of corruption N S.E. Ability to inuence policies, rules and procedures through feedback N S.E. Problem resolution N S.E. Courtesy and helpfulness of Ofcials N S.E. Convenience of working hours N S.E. Complaint handling mechanism (including service provide N S.E. Convenience of location of ofce N S.E. Queuing system at CTD Ofce N S.E. Durability and legibility of certicates/ receipts CTP N S.E. Adherence to Citizen Charter N S.E. Dependence on ofcials N S.E.

Computerized 3.69 101 0.071 3.98 101 0.07 3.78 100 0.072 3.63 101 0.071 3.86 101 0.056 3.68 101 0.074 3.74 101 0.07 3.85 101 0.062 3.97 101 0.09 4.56 101 0.057 3.85 101 0.075 4.09 101 0.061 3.67 101 0.068 3.81 101 0.073

Manual 3.97 102 0.083 3.78 102 0.083 3.99 99 0.078 3.85 102 0.073 3.75 102 0.066 3.69 102 0.079 3.81 102 0.076 3.86 102 0.071 3.84 102 0.076 4.25 102 0.073 3.47 102 0.092 3.87 102 0.084 3.85 102 0.082 3.72 102 0.079

Change (C-M) -0.278

Signicance **

0.196

-0.21

-0.219

0.106

NS

-0.003

NS

-0.071

NS

-0.011

NS

0.127

NS

0.319

**

0.381

**

0.217

**

-0.18

0.096

NS

130

Impact Assessment of Commercial Taxes Computerization 2010-Andhra Pradesh

Composite Score
Table 36: Composite Score Respondents who Considered Factor to be Among Three Most Important a b Number Percentage (Column a/Total of Column a) 8 1.3% 21 3.5% 25 4.1% 18 43 12 13 21 37 21 29 22 34 19 34 22 41 26 38 23 11 22 29 6 18 13 606 3.0% 7.1% 2.0% 2.1% 3.5% 6.1% 3.5% 4.8% 3.6% 5.6% 3.1% 5.6% 3.6% 6.8% 4.3% 6.3% 3.8% 1.8% 3.6% 4.8% 1.0% 3.0% 2.1% 100.0% Average of Individual Scores Improvement

Column No. Factor

c Computerized

d Manual

Time and effort in ling returns Cost incurred in ling returns Design and layout of forms (templates in case of online Time and effort in procuring statutory forms Cost incurred in procuring statutory forms Overall quality of service Overall quality of governance Overall experience of availing service from CTD Accuracy of transactions Condentiality and security of data Predictability of outcome Accountability of ofcials Clarity and simplicity of processes and procedures Knowledge of ofcials Transparency in CTD Level of corruption Ability to inuence policies, rules and procedures through feedback Problem resolution Courtesy and helpfulness of Ofcials Convenience of working hours Complaint handling mechanism (including service provide Convenience of location of ofce Queuing system at CTD Ofce Durability and legibility of certicates/ receipts CTP Adherence to Citizen Charter Dependence on ofcials Total (Sum of column)

3.78 3.8 3.91 3.9 3.64 4.01 3.75 3.84 3.76 3.88 3.91 4.11 3.69 3.98 3.78 3.63 3.86 3.68 3.74 3.85 3.97 4.56 3.85 4.09 3.67 3.81

3.98 3.59 3.79 3.98 3.82 3.88 3.72 3.77 3.85 3.73 3.8 3.77 3.97 3.78 3.99 3.85 3.75 3.69 3.81 3.86 3.84 4.25 3.47 3.87 3.85 3.72

e F Difference Weighted (Column c Score Column d) (Column e* Column b) -0.205 -0.00267 0.211 0.007385 0.122 0.005002 -0.079 -0.18 0.128 0.037 0.067 -0.088 0.156 0.107 0.335 -0.278 0.196 -0.21 -0.219 0.106 -0.003 -0.071 -0.011 0.127 0.319 0.381 0.217 -0.18 0.096 -0.00237 -0.01278 0.00256 0.000777 0.002345 -0.00537 0.00546 0.005136 0.01206 -0.01557 0.006076 -0.01176 -0.00788 0.007208 -0.00013 -0.00447 -0.00042 0.002286 0.011484 0.018288 0.00217 -0.0054 0.002016 0.021438

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Impact Assessment of Commercial Taxes Computerization 2010-Andhra Pradesh

SECTION F: Suggestions

Table 37: Suggestions for improving online services Suggestions for improving online service Eliminate practice of submission of hard copy of CTD Server speed should be increased Maintenance of website should not be done during ofce hour CTD ofcials should be given adequate training, so that they can handle queries on online services efciently Provide templates (w.r.t. returns) that can perform data verication ofine Changes in processes/templates should be immediately communicated to users Others Total Responses N Percent 168 36.7% 129 28.2% 21 4.6% 23 82 33 2 458 5.0% 17.9% 7.2% .4% 100.0% Percent of Cases N 82.8% 63.5% 10.3% 11.3% 40.4% 16.3% 1.0%

Table 38: Suggestions for increasing usage of online services Suggestions to increase use of e-service Awareness campaigns on online services for dealers Establishment of common service centres to facilitate e-services to all Online processes should be made much more user friendly and simple Total Responses N Percent 192 47.9% 108 26.9% 101 25.2% 401 100.0% Percent of Cases N 94.6% 53.2% 49.8%

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Acknowledgments
We express our sincere thanks to the Department of Information Technology, Government of India for giving us the opportunity to conduct the assessment. For helping us conceptualize this study, we express our foremost thanks to Mr. R. Chandrashekhar, Secretary, Department of Information Technology & Prof. Subhash Bhatnagar, Adjunct Professor, IIM, Ahmedabad. We are extremely indebted to Mr. S. P Singh, Senior Director, DIT and Ms. Radha Chauhan, Principal Consultant, DIT, for entrusting us with this study. Mr. G.S. Mishra, Commissioner, Commercial Taxes Department, Government of Chhattisgarh, has facilitated the survey at every stage many thanks to him. Ms. Vineeta Dixit, Principal Consultant, National e-Governance Division, DIT Ms. Sulakshana Bhattacharya, DIT, Ms. Shiffy Thankam Varkey, DIT and Ms. Nupur Singh, In-charge, Center for Electronic Governance, IIMA provided us with constant help and support. We express our sincere gratitude to them. Our heart felt gratitude to all Field Supervisors and Investigators who carried out the survey. Director, RDI

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Table of Contents

1.0 Introduction ..............................................................................................................................139 2.0 Prole of Respondents .............................................................................................................141 3.0 Awareness and Usage of Online Services ...............................................................................141 4.0 Time, Effort and Cost of Availing Services.............................................................................142 5.0 Overall Assessment..................................................................................................................159 6.0 Suggestions of Respondents ....................................................................................................159 7.0 Opinion of Service Providers ...................................................................................................160 8.0 Recommendations for Improving Online Services ..................................................................160 Annexure A: Sampling Methodology ............................................................................................ 162 Annexure A I: Quasi-Experimental Design: Nonequivalent Groups Design........................ 165 Annexure A II: Selection of Circles CHHATTISGARH Number of dealers using E-Services for the period: 1st April 08 to 11 August 09 ..................................... 166 Annexure B: Listing Schedule ........................................................................................................ 167 Annexure C: Interview Schedule for Dealers ................................................................................ 168 Annexure D: Interview Schedule for CTPs .................................................................................... 176 Annexure E: Field Work ................................................................................................................. 184 Annexure F: Tables - Dealers Using Optional Online Services ..................................................... 185 Annexure G: Tables - CTPs Using Optional Online Services ....................................................... 206

136

Abbreviations and Acronyms


DIT Department of Information Technology

IIMA Indian Institute of Management, Ahmedabad CTP Commercial Taxes Practitioner

CTD Commercial Taxes Department

137

Executive Summary
The Commercial Taxes Department of Chhattisgarh has introduced some online services for dealers. Major services include e-ling of returns and e-payment of Tax. The primary objective of this study was to assess the impact of online services on end users (dealers and commercial taxes practitioners). In order to gather information from end users, a survey was undertaken. Two different interview schedules were used in the survey, which covered 806 users in three Divisions of Chhattisgarh. This report summarizes major ndings of this survey.

Awareness and Usage of Online Services


Data obtained from Commercial Taxes Department, Chhattisgarh showed that the number of users of online services is limited. Among dealers, lack of awareness about e-services, is one of the major reasons for this 59.9% of comparison group (manual mode users) were not aware of online services. However, among CTPs awareness is not an issue - as 70% of comparison group CTPs were aware of online services.

Time, Effort and Cost of Availing Service: Filing Returns


Preparation of documents: With respect to total cost of preparation of documents, there isnt any signicant difference between online and manual modes of service delivery. Submitting returns to CTD: Both manual and online users have to make at least one trip to CTD ofce - manual users to submit their returns and online users to submit hard copy of e-returns. Online service, therefore, has not been successful in terms of eliminating visits to ofce. Total elapsed time in availing service is signicantly higher in the case of online users - this is because online users have to spent time on online transactions in addition to the time spent in manual submission of hard copy to CTD Ofce. There is a need to make this service (e-returns) end-to-end by eliminating the need to visit ofce (for submission of hard copies of returns). In addition, online templates should be made much more user friendly this could reduce the time and cost involved in preparation of documents.

Time, Effort and Cost of Availing Service: Tax Payment


This online service has had signicant impact it has eliminated trips to Banks/Treasuries to make payment (payment is made online) and signicantly reduced total elapsed time in availing service.

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1.0 Introduction
The Department of Information Technology (DIT), Government of India, is mandated to periodically assess impact of Mission Mode Projects (MMPs) on end users. In line with this, the rst round of assessment was carried out in 2008 during which some Central and State MMPs were assessed. The framework for this study was developed by the Centre for Electronic Governance (CEG) of IIMA. Eleven empanelled Market Research agencies carried out surveys among end users across India, analyzed data and presented reports. In the current round of assessment (2nd round) RDI has been entrusted with impact assessment of commercial taxes e-governance projects in ve States viz. Rajasthan, Chhattisgarh, Gujarat, Andhra Pradesh and Tamil Nadu. This report will discuss, in detail, impact of Commercial Taxes e-Governance Projects in Chhattisgarh. The broad framework for this study has been developed by IIMA. RDI was primarily responsible for conducting pilot study, developing research design and sampling methodology, modifying interview schedules (that was developed by IIMA and used in the 1st round), survey, analysis and preparation of State level reports. 1.1 Objectives of the study Commercial Taxes Department (CTD) of Chhattisgarh has introduced many online services for dealers including ling of returns and payment. This study was commissioned primarily to assess the impact of online services1 on end users. The interview schedule designed for the study has ve major sections, each with specic objectives: 1. User Prole: To form a prole of end users - dealers and Commercial Taxes Practitioners (CTPs). 2. Awareness and Usage of Online Services: To understand the extent of awareness and usage of various online services. In addition, this section will also give information as to why certain users prefer online services over manual services and vice versa. 3. Time, Effort and Cost of Availing Services: To assess the impact of online services on factors including number of trips for availing service, waiting time, salary/wages spent for availing service, total payment made and total elapsed time in availing service. 4. Overall Assessment: Perception of users regarding certain key attributes of the service delivery was captured in this section. Attributes included overall quality of service and overall quality of governance. 5. Suggestions: In this section we have captured suggestions of users on improving online services and increasing usage of online services.

________
1

Electronic service delivery launch date: October 2006

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1.2

Research design and sampling methodology


Table 1: Percentage of Online and Manual Users (1st April 08 to 11th August 2009) (01.04.2009 to 31.07.2009) VAT (%) CST (%) O 0.08% (68) 1.74% (1054) 1% 1% M NA NA NA NA O NA NA NA NA

Service M Filing of returns2 Application of statutory forms3 Information Dissemination* Application of statutory and other forms*
*Approximate gures based on perception of Ofcials Source: Commercial Taxes Department, Chhattisgarh

99.92% (80630) 98.26% (60472) 99% 99%

There were several factors that had to be taken in to account while developing research design and sampling methodology for this study: 1. There were four major online services in Chhattisgarh in August 2009. Table 1 give details of online services in the State and service wise percentage of users 2. All online services were voluntary dealers could either use manual mode or online mode according to their convenience 3. During pilot study we understood that many dealers in Chhattisgarh relied (either partially or fully) on Commercial Taxes Practitioners (CTP) for availing services including registration, ling returns and payment. Users of online services would therefore include Dealers and CTPs (who were availing service on behalf of their clients) and we had to cover both categories of users in this study After factoring in the above mentioned points, Non-equivalent Groups Design (with treatment and comparison groups), a type of Quasi-Experimental Design was adopted for the study. Multi Stage Random Sampling has been used in this study. The sampling methodology factored in activity level and geographical location for selection of Divisions, Circles and Wards. Please refer Annexure A for details on research design and sampling methodology. 1.3 Interview schedules There were separate interview schedules for dealers and CTPs thus two interview schedules were used in this study. Interview schedules are given in Annexure C & D.
_________ 2 3

E-returns is optional for dealers. E-payment is optional for dealers.

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1.4

Listing and Field work

To select dealers and CTPs for this study we needed several key-information. Listing exercise was carried out among dealers and CTPs in selected wards to gather following information: 1. Services availed in last three months (90 days) and mode of service used (online/manual) this is needed to classify dealers and CTPs as control or treatment group 2. Whether processes w.r.t services used were done in-house or CTPs assistance was taken (partially/ fully). If the dealer is completely relying on CTP there is no point in interviewing the dealer as he/she will not be able to answer most questions in the interview schedule. In such cases the CTP was interviewed instead of dealer 3. Address of CTP - in case CTPs assistance was sought Field work (survey) in Chhattisgarh was carried out during September and October 2009. Listing schedule used for this study is given in Annexure B and details regarding eld work are given in Annexure E.

2.0 Prole of Respondents


The survey covered 806 respondents (Dealers and Commercial Taxes Practitioners) in three Divisions of Chhattisgarh. The table below gives details of users covered. Detailed (questionnaire wise) tables are given in Annexure F & G.
Table 2: Users covered Details of Users 605 [Treatment/Online:303 & Comparison/Manual:302] 201 [Treatment/Online:111 & Comparison/Manual: 90]

Dealers Commercial Taxes Practitioners

3.0 Awareness and Usage of Online Services


Data obtained from Commercial Taxes Department, Chhattisgarh showed that the number of users of online services is limited (Please refer Table 1). Therefore one of the objectives of this study was to nd out the reasons for low usage of online services. 3.1 Reasons for low usage of Online Services

Dealers: Among the comparison group majority (59.9%) were not aware of online services this highlights the need for awareness generation among dealers. Those dealers who were aware (40.1%) avoided using online services because of various reasons major ones are given below: Do not have skills to use online services Do not have access to hardware/software Do not have access to internet Online process is prone to errors

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Online process is not secure Online process is slow Have to submit hard copy to CTD (e-returns)

CTPs: Unlike Dealers, most comparison group CTPs (70%) were aware of online services. However, these CTPs (who were aware) chose not to use online services because of the following major reasons: Do not have skills to use online services Do not have access to hardware/software Do not have access to internet Online process is prone to errors Online process is slow Have to submit hard copy to CTD (e-returns)

3.2 Major reasons for using Online Services Major reasons given by Dealers & CTPs for using online services are: Online process is faster Online process is more secure Fewer errors in online process Fewer visits to commercial taxes department Online process is more transparent

Detailed (questionnaire wise) tables are given in Annexure F & G.

4.0 Time, Effort and Cost of Availing Services


In this section we shall analyze time, effort and cost incurred in availing the following services: Filing of returns and tax payment. Other services could not be analyzed as there werent sufcient responses for them. 4.1 Filing Returns (Optional Online Service) Dealers registered with the CTD are required to le returns periodically, monthly/ bi-monthly/ quarterly/annually depending on turnover of dealer, in a prescribed format. Filing Returns has two major components: I. Preparation of documents: Time and cost in compiling data, preparation of documents and data entry in online template II. Submitting returns to CTD: Time and cost in submitting return documents to CTD and getting receipt of submission Most dealers (manual and online) take help from CTPs for either one or both components mentioned above, mainly because: dealers lack sufcient knowledge to prepare returns; they want to ensure that the data submitted to CTD is free of errors.

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There are several differences between manual and online mode of ling of returns. Major differences are given below:
Table 3: Differences between manual and online mode of ling of returns

Manual

Online

1. Return documents are prepared manually 1. Dealer downloads templates for Return Filling from CTD website this is a one (using various forms such as VAT forms, time activity, unless changes in template are CST forms) in the format specied by the brought about by the CTD department 2. Dealer submits the original return documents 2. Dealer compiles data as per the templates some dealers take a print out of the template to CTD. After verication of return documents and ll it up manually by the clerk/CTI, the dealer receives a receipt of submission 3. Data is entered in the template 3. An ofce copy of the return documents is 4. Template is uploaded and dealer receives an maintained by the Dealer acknowledgement from CTD 4. There is no service charge for ling returns 5. Dealer has to submit a hard copy of the return (print out of template) to CTO Ofce and receive a receipt of submission - receipt is given without verication as the dealer has already submitted return online 6. There is no service charge for ling returns Respondents were asked to provide details on time, effort and cost incurred in ling returns. Responses of 429 dealers (Treatment/Online: 175 & Comparison/Manual: 254) and 190 CTPs (Treatment/Online: 103 & Comparison/Manual: 87) has been analyzed using Independent-Samples T Test and results are given in Tables 4 &5. Please refer Annexure F & G for details. 4.1.1 Time and Cost of Preparation of Documents for Filing of Returns In this section we shall examine how online ling of returns has impacted dealers and CTPs quantitative data obtained through the survey and qualitative data from led observations shall be used in conjunction for this purpose.

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Total man-hours for preparation of documents


Table 4: Total man-hours for preparation of documents4 for Filing of Returns Filing Returns Dealer CTP Manual 1.8175 .8767 Computerized 1.6623 .9629 Change (C-M) -.15518 .08625 Signicance * NS

Total man-hours for preparation of documents


2

1.5

1.8175 1.6623

1
0.9629

0.5

0.8767

-0.15518

0.08625

Manual
-0.5

Computerized

Change (C-M)

Dealers

CTPs

Dealers: Total man-hours spent by online dealers in preparation of documents are signicantly lesser than that of manual users. This is despite the fact that online dealers have to enter data on online template CTPs: There is no difference between the two modes in terms of total man-hours for preparation of documents.

____________
4

This includes man-hours spent in compiling data and man-hours were spent for data entry in online template

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Total cost of preparation of documents


Table 5: Total cost of preparation of documents5 (INR) Filing Returns Dealer CTP Manual 754.7480 42.7011 Computerized 716.1371 54.1165 Change (C-M) -38.6108 11.41536 Signicance NS NS

Total Cost of Preparation of Documents (INR)


800 700 600 500 400 300 200 100 0 -100

754.748

716.1371

42.7011

54.1165 11.41536 -38.6108

Manual

Computerized

Change (C-M)

Delers

CTPs

There is no signicant difference between the two modes w.r.t total cost of preparation of documents.

____________
5

This includes amount spent as salary/wages for preparation of documents, expenses on stationery, cost of Internet, cost of Statutory Forms and other Forms including courier charges and Service charge paid to Tax Consultant for preparation of documents

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4.1.2 Time and Cost of Submitting Documents for Filing Returns Number of trips for Filing Returns
Table 6: Number of trips Filing Returns Dealer CTP Manual 1.05 1.06 Computerized 1.02 1.01 Change (C-M) -.024 -.048 Signicance NS NS

1.2

Number of Trips

0.8

1.05 1.06 1.02 1.01

0.6

0.4

0.2

-0.024
-0.2

-0.048

Manual

Computerized

Change (C-M)

Dealers

CTPs

Both manual and online users have to make at least one trip to CTD ofce. Therefore there is no signicant difference between the two modes w.r.t. number of trips for availing service.

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Waiting time6 for Filing Returns


Table 7: Waiting time (Minutes) Filing Returns Dealer CTP Manual 39.3583 36.0345 Computerized 35.1287 36.2621 Change (C-M) -4.22961 .22765 Signicance * NS

Waiting time (Minutes)


45 40 35 30 25 20 15 10 5 0.22765 0 -5 -10 -4.22961 39.3583 36.0345 35.1287 36.2621

Manual

Computerized

Change (C-M)

Dealers

CTPs

Dealers: Returns submitted by online users are not scrutinized as they have already submitted it online, while that of manual users are scrutinized hence the difference CTPs: The difference between the two modes is not statistically signicant

____________ 6

Time spent in queue and transaction time at counter

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Amount spent as salary/wages on total time spent in availing service7


Table 8: Amount spent as salary/wages on total time spent in availing service (INR) Filing Returns Dealer CTP Manual 24.37 19.49 Computerized 56.63 26.00 Change (C-M) 32.258 6.506 Signicance ** **

60

Amount spent as salary/wages on total time spent in availing service

50 56.63

40

30 32.258 24.37 10 19.49 0 6.506 26

20

Manual
Dealers

Computerized

Change (C-M)
CTPs

The difference seen is mainly because online users have to submit hard copy to CTD for which they have to make at least one trip and also spent time for online transaction.

__________
7

Traveling time + waiting time + time for online transaction (man-hours spent X wage per man-hour)

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Total payment made8 for Filing Returns


Table 9: Total payment Made (INR) Filing Returns Dealer CTP Manual 669.88 .00 Computerized 585.86 .00 Change (C-M) -84.025 Signicance NS

800 700 600 500 400 300 200 100

Total Payment Made (INR)

669.88 585.86

0
0

0 -84.025

-100

Manual
-200

Computerized

Change (C-M)

Dealers

CTPS

Dealers: There is no signicant difference between the two modes in terms of total payment made.

__________
8 Includes a) service charge paid to CTP, b) amount paid to department for which receipt was given, and c) amount paid as bribe to department staff/ functionaries

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Time in availing service through manual process


Table 10: Time in availing service through manual process Filing Returns Dealer CTP Manual .6657 .6248 Computerized .5714 .5992 Change (C-M) -.09438 -.02560 Signicance ** NS

Time in availing service through Manual process (Hours)


0.8 0.7 0.6

0.6657
0.5 0.4 0.3 0.2 0.1 0

0.5992 0.6248 0.5714

-0.09438
-0.1 -0.2

-0.0256

Manual

Computerized

Change (C-M)

Dealers

CTPs

Dealers: Returns submitted by online users are not scrutinized as they have already submitted it online, while that of manual users are scrutinized hence the difference. CTPs: There is no signicant difference between the two modes.

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Total elapsed time in availing service


Table 11: Total elapsed time in availing service Filing Returns Dealer CTP Manual .6677 .6375 Computerized .8059 .8554 Change (C-M) .13817 .21797 Signicance ** **

Total Elapsed Time in Availing Service (Hours)


0.9 0.8 0.7 0.6 0.5 0.4 0.3 0.2

0.8554 0.8059 0.6677 0.6375

0.21797
0.1

0.13817
0

Manual

Computerized

Change (C-M)

Dealers

CTPs

Total elapsed time is signicantly higher in the case of online users. This is because they have to spent time on online transactions in addition to the time spent in manual submission of hard copy to CTD Ofce.

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4.2 Tax Payment Dealers have to make periodic Tax Payments to CTD as per the tax calculated in the returns led by them. Major difference between Manual and Online Tax Payment is given below: Manual Payment is accepted in Banks/Treasuries Online

Dealers can make payment online through their online Bank Accounts9. There is no need to visit Dealers have to ll challan (Banks/Treasuries) Bank/Treasury to make payment giving payment details e-forms are lled by dealers (giving payment One has to go in person to Banks/Treasuries and details) and after this the software leads user to stand in queues to make payment at least one selected Banks gateway trips is required for this After online payment, hard copy of e-challan is Tax payment receipt (challan) is submitted provided through Banks interface, which can be to CTD this is done along with submission printed and provided to CTD, as is done with the of returns and therefore dealers do not make regular challan separate trips for this. Hard copy of the e-challan is submitted to CTD this is done along with submission of returns and therefore dealers do not make separate trips for this. Responses of 434 dealers (Online: 205 & Manual: 229) and 81 CTPs (Online: 37 & Manual: 44), regarding Tax Payment, has been analyzed using Independent-Samples T Test.

_______________ 9

The online account has to be in a Bank that is identied by CTD for the purpose of e-payment

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Total man-hours for preparation of documents


Table 12: Total man-hours for preparation of documents10 Tax Payment Dealer CTP Manual .9333 .4550 Computerized .6358 .3732 Change (C-M) -.29756 -.08176 Signicance ** NS

Total man-hours for preparation of documents


1 0.8
0.9333

0.6 0.4
0.455

0.6358 0.3732

0.2 0

-0.08176

-0.2 -0.4

-0.29756

Manual

Computerized

Change (C-M)

Dealers

CTPs

Dealers: Total man-hours for entering payment details (in challan/e-forms) are signicantly less in the case of online dealers. CTPs: The difference between the two modes is not statistically signicant.

_________ 10

Man-hours spent in lling challan/e-forms

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Total cost of preparation of documents


Table 13: Total cost of preparation of documents11 (INR) Tax Payment Dealer CTP Manual 63.083 19.9091 Computerized 63.3220 24.5135 Change (C-M) 5.23898 4.60442 Signicance NS NS

Total Cost of Preparation of Documents (INR)


70 60 50

63.322
40 30 20

63.083

24.5135 19.9091
10 0

5.23898

4.60442

Manual

Computerized

Change (C-M)

Delers

CTPs

In the case of Tax Payment dealers need to ll challan/e-forms we have tried to capture the cost involved in this. In terms of total cost of preparation of documents, there is no signicant difference between the two modes.

_________ 11 This includes amount spent as salary/wages for preparation of documents, expenses on stationery, cost of Internet, cost of Statutory Forms and other Forms including courier charges and Service charge paid to Tax Consultant for preparation of documents

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Number of trips to Bank/Treasury


Table 14: Number of trips Tax Payment Dealer CTP Manual 1.00 1.00 Computerized .00 .00 Change (C-M) -1 -1 Signicance ** **

1.5

Number of Trips

0.5

1
0

-0.5

Manual

Computerized

Change (C-M)
-1 -1

-1

-1.5

Dealers

CTPs

In the online mode, users can make payment online through their Bank Account. There is no need to visit Bank or treasury to make payment thus users can save travel and waiting time and travel cost. It may be noted that currently CTPs are not allowed to make tax payments through their accounts - it has to be done from the dealers account. One of the major suggestions from dealers and CTPs is to allow CTPs to make payments on behalf of their clients - through their bank accounts.

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Amount spent as salary/wages on total time spent in availing service


Table 15: Amount spent as salary/wages on total time spent in availing service12 (INR) Tax Payment Dealer CTP Manual 15.36 11.23 Computerized 5.61 4.24 Change (C-M) -9.748 -6.984 Signicance ** **

20

Amount spent as salary/wages on total time spent in availing service

15 15.36

10

11.23

5.61 4.24

-5

Manual

Computerized

Change (C-M)
-6.984 -9.748

-10

Dealers
-15

CTPs

Online users do not have to make any trips or spent time traveling or waiting. Therefore they spend lesser on salary/wages when compared to manual dealers.

_____
12

Traveling time + waiting time + time for online transaction (man-hours spent X wage per man-hour)

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Total payment Made


Table 16: Total payment Made (INR) Tax Payment Dealer CTP Manual 32.05 .00 Computerized 24.51 .00 Change (C-M) -7.540 .00 Signicance NS

35 30 25 20 15 10 5

Total Payment Made (INR)

32.05

24.51

0
0

0 -7.54

-5 -10

Manual

Computerized

Change (C-M)

Dealers

CTPS

There is no signicant difference between online and manual modes as far as total payment made for the service is concerned. The only payment made by dealer is service charge of CTP as there is no service charge to be paid to CTD and none of the dealers paid bribes.

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Total elapsed time in availing service


Table 17: Total elapsed time in availing service Tax Payment Dealer CTP Manual .4326 .3843 Computerized .2547 .2292 Change (C-M) -.1779 -.15513 Signicance ** **

Total Elapsed Time in Availing Service (Hours)


0.5 0.4 0.3 0.2 0.1 0 -0.1 -0.2 -0.3 -0.15513 -0.1779 0.4326 0.2547 0.2292

0.3843

Manual

Computerized

Change (C-M)

Dealers

CTPs

Total elapsed time for availing service for online users is signicantly lesser than that of manual users. This is because online service has eliminated the need for manual visit to Banks/Treasuries.

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5.0 Overall Assessment


Dealers and CTPs were asked to rate some attributes13 w.r.t optional services provided by CTD on a ve point scale. Independent-Samples T Test was used for analysis. Dealers: Analysis shows that in the case of 23 attributes, online mode was rated higher than manual mode. In the remaining ones (5 attributes), difference of mean scores (of manual and online users) was not statistically signicant. CTPs: Difference of mean scores (of manual and online users) was not statistically signicant in the case of 23 attributes. Among the remaining ones (4 attributes), online mode was rated higher than manual in two attributes (Courtesy and helpfulness of Ofcials and Problem resolution) and manual mode was rated higher than online mode in two attributes (Design and layout of forms/templates and Time and effort in tax payment). Composite Score Interview schedule wise Composite Scores were calculated based on information collected from the section: Overall Assessment. Results are given in the gure below:

Composite Score
Dealers
0.3 0.25 0.2 0.15 0.1 0.05 0 0.002844 0.239095

CTPs

6.0 Suggestions of Respondents


Major suggestions for improving online services 1. Eliminate practice of submission of hard copy to CTD (w.r.t e-ling) 2. Server speed should be increased 3. Tax consultants should be allowed to make e-payment on behalf of their clients through Consultants Internet Banking A/C (dealers do not want to give CTPs access to their accounts) 4. Involve more banks in e-payment 5. Changes in processes/templates should be immediately communicated to dealers
_______
13

There were 28 attributes for dealers and 27 for CTPs

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Impact Assessment of Commercial Taxes Computerization 2010-Chhattisgarh

Major suggestions to increase use of e-service 1. Awareness campaigns on online services for users 2. Establishment of common service centres to facilitate e-services to all 3. Online processes should be made much more user friendly & simple Other Suggestions 1. All forms, including CST Forms, should be provided online 2. CTD ofcials should be given proper training w.r.t online services 3. Local language interface needed for online services

7.0 Opinion of Service Providers


As part of the study we interviewed ofcials of CTD at the ward level. Information gathered from them is summarized below: 1. Benets of e-governance project: Saving time and cost: CTD has beneted from online ling of returns as they do not have to do data entry - it is done by dealers on online template and they can hold dealers responsible for data entry errors.

In manual mode, however, data entry is done by CTD and therefore they cannot hold dealers responsible for data entry errors 2. Challenges faced as a result of e-governance project: Lack of proper training for employees on online services Server is slow

8.0 Recommendations for Improving Online Services


Filing Returns 1. Preparation of documents: Online dealers have to enter data on an online template this is a complex and time consuming process. There is a need to make this process simpler and faster. One major problem pointed out by users is that while uploading online template (after data entry), if there is an error (usually syntax error), the online application will not accept the template. Consequently the user has to rectify the error and upload the template yet again. This leads to wastage of time many dealers therefore suggest that the template should be designed to detect errors during data entry stage itself, so that time is not wasted while uploading the template

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Many dealers have suggested that the online template of CTD should be made compatible with popular accounting software (e.g. Tally) so that data could be directly transferred to the online template - thus avoiding data entry. The study reveals that most online dealers (about 97%) maintain book of accounts on their computers and therefore it could be worthwhile to consider this suggestion.

2. Submitting returns to CTD ofce: Online dealers have to submit hard copy of online returns to CTD ofce thus they have to make at least on trip to the ofce. There is a need to make this service end-to-end and eliminate the need to visit ofce. We understand that this service can be made an end-to-end service trough use of digital signature. However, the use of digital signature among dealers is minimal because: Most dealers lack proper awareness regarding digital signature Many are reluctant to use it because they believe that digital signature is not secure it could be hacked and misused The study has reveled that most dealers depend on CTPs (either fully or partially) for ling returns. This means that the dealer will have to give the CTP access to his/her digital signature. However, many dealers do not trust CTPs with their digital signatures.

Considering the above mentioned points we feel that service should be made end-to-end by circumventing the challenges posed by digital signature. Tax Payment 1. One of the major suggestions that we received dealers and CTPs is that Tax consultants should be allowed to make e-payment on behalf of their clients through Consultants Internet Banking A/C (dealers do not want to give CTPs access to their accounts) 2. Another major suggestion was to Involve more banks in e-payment

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Annexure A

Sampling Methodology Chhattisgarh


1.1 Introduction The major functions of Commercial Tax Department are to register dealers, assess dealers, collect tax and effect recoveries. For administrative convenience, the State has been divided into Divisions and Circles. The CTD has 3 Divisions and 27 Circles. Division is headed by a Deputy Commissioner. Each Division in turn comprise of Circles headed by a Commercial Tax Ofcer. In addition, there are 6 check posts operating currently on the borders of Chhattisgarh. Online services in Chhattisgarh and service wise percentage of users are given below:

Table 1: Percentage of Online and Manual Users (1st April 08 to 11th August 2009) Service M Filing of returns Payment15 Information Dissemination* Application of statutory and other forms* *Approximate gures based on perception of Ofcials Source: Commercial Taxes Department, Chhattisgarh
14

VAT (%) O 0.08% (68) 1.74% (1054) 1% 1% M NA NA NA NA 99.92% (80630) 98.26% (60472) 99% 99%

CST (%) O NA NA NA NA

1.2 Research Design Nonequivalent Groups Design, with treatment and comparison groups, has been adopted for impact assessment of Optional Online Services (Please refer Annexure A I). Treatment Group has been dened as: Dealers who have availed at least one of the following online services (reference period is last 90 days): 1. e-returns; 2. e-payment; 3. Collecting information online (including application tracking), 4. Online application for statutory and other forms. Treatment group were asked to provide information pertaining to online services only. Comparison Group has been dened as: Dealers who have not availed any of the optional online services, but availed at least one of the following manual services (reference period is last 90 days): 1. Filing of returns; 2. Payment; 3. Collecting information (including application tracking), 4. Application for statutory and other forms. Comparison group were asked to provide information pertaining to manual services only.
__________
14

e-returns is optional for dealers. e-payment is optional for dealers.

15

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1.3 Selection of Divisions Ideally we would have wanted to arrange Divisions according to their activity level; divide them in quartiles and randomly select one Division from Each quartile. However, it was not possible in this case because Chhattisgarh Commercial Tax Department has only three divisions. Therefore, all three Divisions were selected.
Table 2: Selection of Divisions No. of Dealers Percentage16 Using e-Services Raipur 631 56.2% Bilaspur 204 18.2% Durg 287 25.6% Total 1112 100% Note: Sample size in each Division is proportionate to the number of users Division No. of Respondents/Division 450 145 205 800

1.4 Selection of Circles We arranged Circles within each Division according to their activity level - in descending order of number of dealers using e-Returns and e-Payment. Then Circles with less than twenty e-users were eliminated (as it will be difcult to nd treatment group in these Circles) and the remaining Circles were selected (Please refer Annexure A II).
Table 3: Selection of Circles Divisions Selected Circles Raipur Circle 05 Bastar (Jagdalpur 1) Raipur Circle 04 Raipur Circle 03 Raipur Circle 02 Mahasamund Sarguja / Ambikapur Korba Bilaspur Circle 01 Durg Circle 02 Durg Circle 01 Rajnandgaon

Raipur

Bilaspur

Durg

1.5 Selection of Wards Within each selected Circle has been selected two Wards on the basis of their distance from Circle.
__________ 16

Percentage of users in each Division

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One Ward is near the Circle and the other is far from the Circle Ofcials at Circle Level consulted in selecting Wards. In all, 24 Wards selected in 12 Circles. 1.6 Selection of Respondents from Wards At the Circle Level, a listing exercise was carried out to categorize Dealers and CTPs as treatment and control groups. 1.7 Total Sample Size
Table 4: Total Sample Size Divisions Selected Circles Raipur Circle 05 No. of Wards 6 Circles X 2 = 12 Sample Size/ Ward 450/12 = 36 (18 treatment + 18 comparison)

Bastar (Jagdalpur 1) Raipur Circle 04 Raipur Raipur Circle 03 Raipur Circle 02 Mahasamund Sarguja / Ambikapur 3 Circles X 2 = 6 145/6 = 24 (12 treatment + 12 comparison) Bilaspur Korba Bilaspur Circle 01 Durg Circle 02 3 Circles X 2 = 6 205/6= 34 (17 treatment + 17 comparison) Durg Durg Circle 01 Rajnandgaon Out of the total respondents (800), 75% (600) is dealers and 25% (200) are CTPs.

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Annexure A I

Quasi-Experimental Design: Nonequivalent Groups Design


(Post-test Only)

N X O N O
Each group is described on a single line (i.e., treatment group on top, comparison group at the bottom) N indicates that groups are Nonequivalent (i.e., people have not been randomly assigned to groups) X depicts the implementation of a program O stands for the administration of a measure to a group (only post-test in this case) The Non-Equivalent Groups Design (NEGD) is probably the most frequently used design in social research. It is structured like a pretest-posttest randomized experiment, but it lacks the key feature of the randomized designs -- random assignment. In the NEGD, we most often use intact groups that we think are similar as the treatment and control groups. In education, we might pick two comparable classrooms or schools. In community-based research, we might use two similar communities. We try to select groups that are as similar as possible so we can fairly compare the treated one with the comparison one. But we can never be sure the groups are comparable. Or, put another way, its unlikely that the two groups would be as similar as they would if we assigned them through a random lottery. NEGD is susceptible to the internal validity threat of selection. Any prior differences between the groups may affect the outcome of the study. Under the worst circumstances, this can lead us to conclude that our program didnt make a difference when in fact it did, or that it did make a difference when in fact it didnt. Reference Trochim, William M. The Research Methods Knowledge Base, 2nd Edition. Internet WWW page, at URL: http://www.socialresearchmethods.net/kb/ (version current as of October 20, 2006)

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Annexure A II

Selection of Circles
CHHATTISGARH Number of dealers using E-Services for the period: 1st April 08 to 11 August 09
DIVISION CIRCLE Raipur Circle 05 Bastar(Jagdalpur 1) Raipur Circle04 Raipur Circle03 Raipur Circle02 Mahasamund Raipur Circle01 Jagdalpur 2 Raipur Circle09 Dhamtari Raipur Circle06 Raipur Circle07 Raipur Circle08 Sarguja / Ambikapur Korba Bilaspur Circle01 Bilaspur Raigarh01 Bilaspur Circle02 Koriya (Manendagarh) Janjgir Chapa Bilaspur Circle03 Raigarh 02 Durg Circle02 Durg Circle01 Rajnandgaon Durg Circle03 Durg Circle04 G. TOTAL E-Return 22 7 7 8 3 0 11 0 3 0 0 0 0 0 1 1 3 0 0 0 0 0 2 0 0 0 0 68 E-Payment 154 120 103 63 59 40 2 10 0 19 0 0 0 Sub Total 87 39 35 15 13 5 5 0 0 Sub Total 201 40 29 14 1 Sub Total 1054 Total 176 127 110 71 62 40 13 10 3 19 0 0 0 631 87 40 36 18 13 5 5 0 0 204 203 40 29 14 1 287 1122

Raipur

Durg

Note: Circles highlighted in Bold have been selected

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Annexure B

Chhattisgarh - Listing Schedule for Dealers


Address of Dealer17 Division Circle Ward < 50 lakhs.1 50 lakhs 1 crore2 > 1 crore.3 Outsourcing19 Online - 2 Online - 2 In-house - 1, Partial - 2, CTP - 3 In-house - 1, Partial - 2, CTP - 3 In-house - 1, Partial - 2, CTP - 3 In-house - 1, Partial - 2, CTP - 3 Name Code

Turnover in FY 2008-09 Services availed in last 90 days18 Service Filing Returns Payment Seeking Information

Used/Not Yes-1; No-2 Yes-1; No-2 Yes-1; No-2

Mode Manual -1; Manual -1;

Manual -1; Online - 2

Obtaining Statutory Forms Yes-1; No-2 Manual -1; Online - 2 Address of CTP20 (only if CTPs service has been availed by the Dealer) Name and Code of Investigator: Date:

Chhattisgarh - Listing Schedule For CTPs


Address of CTP21 Division Range Ward Turnover in FY 2008-09 (INR) Optional Services availed in last 90 days22 Service Filing Returns Payment Seeking Information Obtaining Statutory Forms Yes-1 Yes-1 Yes-1 Yes-1 Used/Not No-2 No-2 No-2 No-2 Manual -1 Manual -1 Manual -1 Manual -1 Mode Online - 2 Online - 2 Online - 2 Online - 2 Name Code

Name and Code of Investigator: Date:


________
17 18

With phone numbers and nearest landmark Circle responses 19 Completely in-house 1; Partially in-house 2; Completely outsourced to CTP 3 20 With phone numbers and nearest landmark 21 With phone numbers and nearest landmark 22 Circle responses

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Annexure - C

Chhattisgarh: Interview Schedule for Dealers


Sl. No. State State Code A. IDENTIFICATION DETAILS District District Date of Interview (DD/MM) Code Phone Land : Mobile: TIN Interviewer Name Code Signature Editor Name Code Signature Supervisor Name Code Signature Group23 Treatment (online)1 Comparison (manual)....2 Distance from Ward Ofce (Km.) Division Circle Ward Division Code Circle code Ward code Location of Ofce Town/ Code Village Respondents Name & Designation

Address of Dealer with landmark

Rural..1 Urban.2

1B.

2B.

3B.

B. DEALER PROFILE Please specify the Constitution of your enterprise Proprietor.1 Partnership..2 Private Limited Company..3 Public Limited Company4 Hindu Undivided Family 5 Co-operative Society..6 Government Undertaking..7 Others (Specify) Please specify the type of business24 Manufacture.1 Wholesale.2 Retail.3 Export...4 Hire Purchase..5 Works Contract....6 Leasing.7 Hotels8 Food & Drink.9 Others (Specify) What was the annual turnover in Financial Year: 2008-09 (INR) Please give details of Commercial Taxes paid in Financial Year: 2008-09 (INR) Tax Registered Amount Paid (INR)

4B.

5B.

Please specify the mode in which Books of Accounts are maintained within the organization Number of staff in your organization who are involved in activities related to Commercial Taxes

VAT Yes-1 No-2 CST Yes-1 No-2 Entry Tax Others (Specify) Manual .....1 Computerized...2 Not maintained at all.3

6B.

________________ 23 24

As per the listing exercise As per Commercial Tax Department records

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1C.

C. AWARENESS AND USAGE OF ONLINE SERVICES Are you aware of online services provided by Yes - 1 Commercial Taxes Department? No - 2 Part D Please specify the rst source of awareness about online services provided by Commercial Taxes Department Newspaper..1 Television...2 Other Dealers..3 CTPs.......4 Commercial Tax Dep. Ofcial...5 Others (Specify) Application for Registration....1 Application for issue of forms2 Application for refund........3 Filing Returns.4 Payment of Taxes5 Information Dissemination..6 Others (Specify)

2C.

3C.

Which are the online services provided by Commercial Taxes Department? (Multiple Responses)

4C.

Have you used any of the online services provided by Yes 1 No 2 Commercial Taxes Department? Please give details regarding online services used and frequency of use Frequency of Use Fortnightly.1 Monthly. 2 Quarterly3 Annually..6 Others (Specify) What are the reasons for using online service (s)
(Multiple Responses)

7C Used/Not
Yes-1 Yes-1 Yes-1 Yes-1 Yes-1 No-2 No-2 No-2 No-2 No-2

5C.

Online Service
Filing Returns Payment of Taxes Application for Forms Seeking information Others (Specify)

Frequency

6C.

PLEASE PROCEED TO PART D AFTER ANSWERING THIS QUESTION

Online process is faster ....1 Online process is more secure..2 Fewer errors in online process..3 Fewer visits to Commercial Taxes Department....4 Online process is more transparent...5 It is mandatory..6 Others (Specify) Do not have skills to use online services....1 Do not have access to hardware/software......2 Do not have access to internet....3 Unreliable power situation.....4 Online process is prone to errors....5 Online process is not secure.......6 Online process is slow..7 Have to submit hard copy to Ofce.8 Others (Specify)

7C.

What are the reasons for not using online service (Multiple responses)

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D. TIME AND EFFORT AND COSTS OF AVAILING SERVICES Please provide the following details with reference to maximum of two services that you have availed from Commercial Tax Department in last 90 days 1D. Services Availed in Last 90 Days: (Only Online services for Treatment Group and only Manual Services for Comparison Group) Filing Returns1 Payment.2 Application of statutory and other forms..3 Seeking information (including application tracking)4 15D Mode of service: Online 1; Manual 2 Was the online service availed mandatory/optional? Mandatory 1; Optional 2 [NOT APPLICABLE FOR MANUAL USERS] Were processes related to the service outsourced? No, it was done completely in-house 1 6D Yes, it was partially done by CTP 2 What are the reasons for depending on CTP (Multiple responses) Due to lack of sufcient knowledge on processes......1 To ensure accuracy of data given to Department........2 Want to avoid interface with Dep. Ofcials....3 Do not want to spent time on this....4 Others (Specify) D-1: Time and Effort and Cost of Preparation of Documents for Filing Returns 6D.
How many man-hours were spent in completing various forms and preparing supporting documents for manual ling of returns?
PLEASE NOTE THAT THIS COULD BE APPLICABLE FOR ONLINE USERS AS WELL - MANY OF THEM ARE REQUIRED TO FILE HARD COPIES, EVEN AFTER FILING RETURNS ONLINE

2D. 3D.

4D.

5D.

7D. 8D. 9D. 10D. 11D. 12D. 13D. 14D.


_________________ 25 26

How many man-hours were spent for data entry in online template? (NOT APPLICABLE FOR MANUAL USERS) Total man-hours spent for preparation of documents for ling returns (6D + 7D) Please calculate the amount spent as salary/wages for preparation of documents for ling returns (Total man-hours spent X wage per man-hour) {INR}
Cost of stationery25 and photo copies w.r.t ling returns {INR} Cost of access to Internet26 (INR) (NOT APPLICABLE FOR MANUAL USERS)

Cost of Statutory Forms and other Forms including courier charges (INR) Service charge paid to Tax Consultant for preparation of documents (INR) (NOT APPLICABLE IF DONE IN-HOUSE: PLEASE SEE 4D) Total cost of preparation of documents for ling returns (INR)

Ledgers, CDs, printing paper, printing ink, carbon paper etc. Internet charges based on hours of internet used for this particular service

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D- 2: Time and Effort and Cost of Availing Services From Commercial Taxes Department 15D. How many trips did you need to make for the service including trips for error correction? Purpose of each trip and time spent waiting (Including time spent in queue and transaction time at counter ) for availing service - (min) Trip I II III IV To submit documents...1 V To collect certicate..2 To correct error in certicate/document issued by CTD....3 To correct errors in documents submitted by Dealer/Tax Consultant.........................................................4 To track application.....5 To seek information......6 To bank/treasury for making payment - Challan (applicable only for payment).........................................................7 To fulll requirement of physical presence.....8 Others (Specify) Please see 15D if the number of trips is more than one, then ask: Why did you have to make more that one trip? It was required as per CTD procedure..1 To follow up, as there was delay on the part of CTD to provide service...............................................................2 Could not avail service in previous visit (s) as there was a long queue..................................................................3 Concerned functionary was not available..............4 Counter was not operational...........5 Documents/application submitted by me were incomplete........6 Others (Specify) Do you think you had to wait excessively for availing service in any of the trips? Yes 1 No 2 20D Please specify the reasons for excessive wait Long queue.........1 Ofcials of CTD are inefcient (slow in processing).....2 Processes are too complex & takes lot of time to complete3 Too many applicants at ofce......4 Badly managed queue......5 Some windows/counters were not operational.....6 Power breakdown..........7 Computer/network connectivity failure........8 Others (Specify) Please specify the travel cost incurred in making a round trip to CTD Ofce (INR)
Purpose Time Purpose Time

16D.

17D.

18D.

19D.

20D.

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21D.

Please specify the travel cost incurred in making a round trip to Bank/ Treasury (INR) (APPLICABLE ONLY FOR PAYMENT) Total travel cost incurred in availing service (number of trips X travel cost per trip) INR Please specify the travel time spent in making a round trip to CTD Ofce (Min.) Please specify the travel time spent in making a round trip to Bank/ Treasury (Min.) (APPLICABLE ONLY FOR PAYMENT) Total travel time spent in availing service (number of trips X travel time per trip) Min. How many times did you log-in to avail online service? [NOT APPLICABLE FOR MANUAL USERS] Please see the previous question if the number is more than one, then ask: Why did you have to log-in more than once? [NOT APPLICABLE FOR MANUAL USERS] Service was not available as server was slow1 Portal was undergoing maintenance2 Templates had changed, therefore it had to be downloaded rst3 Others (Specify) What was the total time taken to complete transaction Online - it does not include time taken for data entry? (Min) [NOT APPLICABLE FOR MANUAL USERS] Do you think that the time taken to complete online transaction was excessive? Yes 1; No 2 31D [NOT APPLICABLE FOR MANUAL USERS] Why do you think are the reasons for excessive time in online transactions? Server is slow1 Processes are complex and time consuming2 Errors occur while uploading template3 Others (Specify) Please calculate the amount spent as salary/wages on total time spent in availing service: traveling time + waiting time + time for online transaction (man-hours spent X wage per man-hour) {INR} THIS DOES NOT INCLUDE TIME TAKEN FOR FILLING FORMS, PREPARATION OF SUPPORTING DOCUMENTS AND DATA ENTRY

22D. 23D. 24D.

25D. 26D. 27D.

28D.

29D.

30D.

31D.

32D. 33D.

Service Charge paid to department for which you got a receipt? (INR) Service charge paid to Tax Consultant for facilitating service from CTD Ofce (INR) (NOT APPLICABLE IF DONE IN-HOUSE: PLEASE SEE 4D)

34D.

What was the total payment27 made by you for availing the service? (INR)

___________________ 27

Includes a) service charge paid to intermediary/agency, b) amount paid to department for which receipt was given, and c) amount paid as bribe to department staff/functionaries

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35D.

What was the total elapsed time in availing service - how long did it take for the task to be completed, right from the date of applying to actually receiving the service applied for? (This does not include time taken for lling forms, preparation of supporting documents and data entry)? (Hours) IN CASE OF ONLINE USERS, TOTAL ELAPSED TIME IS THE TIME TAKEN TO COMPLETE THE TRANSACTION ONLINE PLUS TIME SPENT TO SUBMIT HARD COPIES TO CTD

Manual Process Online Process Total

Manual Process Online Process Total

36D. 37D.

Did you pay a bribe directly to Ofcials? Part E Yes-1; No-2 For what purpose did you pay the bribe indicated in the previous question? (Multiple responses) To avoid audit assessment by CT Department.1 To inuence functionaries to manipulate records in your favor.....2 To expedite the process.. Others (Specify) ........3

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E. OVERALL ASSESSMENT On a 5 point scale (Dissatised-1; Somewhat dissatised-2; Neutral-3; Somewhat satised-4; Very satised-5) please rate the following attributes (Online services for Treatment Group and Manual services for Comparison Group) FILING OF RETURNS 1E. 3E. Time and effort in ling returns 2E. Cost incurred in ling returns

Design and layout of forms (templates in case of online services) PAYMENT OF TAX

4E.

Time and effort in tax payment

5E.

Security of monetary transactions

COMMON ATTRIBUTES (Applicable For All Services) 6E. 8E. 10E. 12E. 14E. 16E. 18E. 20E. 22E. Overall quality of service28 Overall experience of availing service from CTD Condentiality and security of data Time and effort in accessing information Clarity and simplicity of processes and procedures Transparency30 in CTD Ability to inuence policies, rules and procedures through feedback Courtesy and helpfulness of Ofcials Complaint handling mechanism (including service provided by Call centre/Helpline) Queuing system at CTD Ofce Adherence to Citizen Charter34 Durability and legibility of certicates/receipts Among the above given factors please list the three factors that you consider the most important RECORD THE S.NO. OF THE FACTOR 7E. 9E. 11E. 13E. 15E. 17E. 19E. 21E. 23E. Overall quality of governance29 Accuracy of transactions Time and effort in procuring forms Predictability of outcome Accountability of Ofcials Knowledge of Ofcials Level of corruption31 Problem resolution32 Convenience of working hours33

24E. 26E. 28E. 29E.

25E. 27E.

Convenience of location of ofce (accessibility and ambience) Dependence on CTPs35

__________
28 Quality of service is understood as fairness, speed of processing, accuracy of transactions, legibility and durability of certicates and printouts, convenience of obtaining service 29 30 31 32 33 34 35

Governance is understood as transparency, accountability and corruption-free working Understanding and awareness of the basis on which decisions affecting you/other users are taken by ofcials Very corrupt-1; Somewhat corrupt-2; Neutral-3; Somewhat less corrupt-4; Not at all corrupt-5 Mechanism to rectify inadvertent errors in forms/documents submitted by Dealers to CTD e.g. computational errors/wrong gures Hours of service in case of online services Adherence of the time frame for service delivery (elapsed time) to that specied in citizens charter Very much dependant -1; Somewhat dependant -2; Neutral-3; Somewhat less dependant-4; Not at all dependant-5

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F. SUGGESTIONS36 1F. Please give your suggestions in improving online services: (Multiple Responses) Eliminate practice of submission of hard copy to CTD.....a Server speed should be increasedb Tax Consultants should be allowed to make E-payment on behalf of their clients through Consultants Internet Banking A/C..............................................................................................................................c Maintenance of website should not be done during Ofce Hours of Traders/Tax Consultantsd CTD ofcials should be given adequate training, so that they can handle queries on online services efciently........................................................................................................................................................e Involve more Banks in E-payment.........................................f Provide templates(w.r.t. returns) that can perform data verication ofine..........g Changes in processes/templates should be immediately communicated to dealers......h Others (Specify)

2F.

Please give your suggestions to increase use of online services: (Multiple Responses) Awareness campaigns on online services for dealers..a Establishment of Common Service Centres to facilitate E-services to all dealer....b Online processes should be made much more user friendly and simple..............c Others (Specify)

____
36

This part is for all users - manual and online

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Annexure D

Chhattisgarh: Interview Schedule for CTP


A. Sl. No. State State Code G. IDENTIFICATION DETAILS District Dis- Date of Interview (DD/MM) trict Code Town/Village Respondents Name

Address with landmark

Location of Ofce Code Rural..1

Phone Land Line : Interviewer Name Name Mobile: Editor

Group37 Treatment (online)..1 Supervisor Name Comparison (manual)2 Distance from Ward Ofce (Km.)

Urban.2 Division Division Code Circle Circle code

Code Signature A. 1B.

Code Signature

Code Signature

Ward

Ward code

H. Prole of Tax Consultant Educational qualication of Tax Consultant FICA. - 1 LLB - 2 Others (Specify)

2B. 3B. 4B.

Years of Experience as Tax Consultant What was the annual turnover in Financial Year: 2008-09 (INR) Major services provided to clients (only those for which service charge is taken), service charge (average)

Tax

Service

Service Charge (INR) Manual Online

SERVICE Registration 1; Filing Returns 2; Others Specify. TAX VAT -1; CST 2; Others (Specify) 5B. 6B. 7B. Number of staff in your organization who are involved in activities related to Commercial Taxes Is the Tax Consultant computer literate? Yes 1 Has the Tax Consultant used any online E-Gov. service No - 2 Yes 1 No - 2 Part C

___________
37

As per the listing exercise

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I. AWARENESS AND USAGE OF ONLINE SERVICES 1C. 2C. Are you aware of online services provided by Commercial Taxes Department? Yes - 1 No - 2 Part D

Please specify the rst source of awareness about online Newspaper..1 services provided by Commercial Taxes Department Television...2 Dealers....3 Other CTPs....4 Commercial Tax Dep. Ofcial......5 Others (Specify) Which are the online services provided by Commercial Taxes Department? (Multiple Responses) Application for Registration....1 Application for issue of forms...2 Application for refund....3 Filing Returns..4 Payment of Taxes....5 Information Dissemination.....6 Others (Specify) Yes 1 No 2 7C Used/Not Frequency Yes-1 No-2 Yes-1 No-2 Yes-1 No-2 Yes-1 No-2 Yes-1 No-2

3C.

4C.

Have you used any of the online services provided by Commercial Taxes Department? Please give details regarding online services used and frequency of use Frequency of Use Daily...1 Weekly....2 Fortnightly..3 Monthly. 4 Quarterly.5 Annually..6 Others (Specify) What are the reasons for using online service (s) (Multiple Responses)

5C.

Online Service Filing Returns Payment of Taxes Application for Forms Seeking information Others (Specify)

6C.

Online process is faster ....1 Online process is more secure..2 Fewer errors in online process..3 Fewer visits to Commercial Taxes Department.4 Online process is more transparent.5 It is mandatory.....6 Others (Specify) Do not have skills to use online services....1 Do not have access to hardware/software.....2 Do not have access to internet....3 Unreliable power situation....4 Online process is prone to errors....5 Online process is not secure.......6 Online process is slow..7 Have to submit hard copy to Ofce.8 Others (Specify)

PLEASE PROCEED TO PART D AFTER ANSWERING THIS QUESTION

7C.

What are the reasons for not using online service (Multiple responses)

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J. TIME AND EFFORT AND COSTS OF AVAILING SERVICES Please provide the following details with reference to maximum of two services that you have availed from Commercial Tax Department in last 90 days 38D. Services Availed in Last 90 Days: (Only Online services for Treatment Group and only Manual Services for Comparison Group) Filing Returns1 Payment.....2 Application of statutory and other forms..3 Seeking information (including application tracking)4 39D. 40D. Mode of service: Online 1; Manual 2 Was the online service availed mandatory/optional w.r.t client? Mandatory 1; Optional 2 [NOT APPLICABLE FOR MANUAL USERS] D-1: Time and Effort and Cost of Preparation of Documents for Filing Returns 41D. How many man-hours were spent in completing various forms and preparing supporting documents for manual ling of returns? PLEASE NOTE THAT THIS COULD BE APPLICABLE FOR ONLINE USERS AS WELL - MANY OF THEM ARE REQUIRED TO FILE HARD COPIES, EVEN AFTER FILING RETURNS ONLINE 42D. How many man-hours were spent for data entry in online template? (NOT APPLICABLE FOR MANUAL USERS) 43D. 44D. Total man-hours spent for preparation of documents for ling returns (6D + 7D) Please calculate the amount spent as salary/wages for preparation of documents for ling returns (Total man-hours spent X wage per man-hour) {INR} Cost of stationery38 and photo copies w.r.t ling returns {INR} Cost of access to Internet39 (INR) (NOT APPLICABLE FOR MANUAL USERS) 47D. 48D. Cost of Statutory Forms and other Forms including courier charges (INR) Total cost of preparation of documents for ling returns (INR) 12D A B

45D. 46D.

________
38 39

Ledgers, CDs, printing paper, printing ink, carbon paper etc. Internet charges based on hours of internet used for this particular service

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D- 2: Time and Effort and Cost of Availing Services From Commercial Taxes Department 49D. 50D. How many trips did you need to make for the service including trips for error correction? Purpose of each trip and time spent waiting (Including time spent in queue and transaction time at counter ) for availing service - (min) To submit documents...1 To collect certicate.....2 To correct error in certicate/document issued by CTD3 To correct errors in documents submitted by Dealer/Tax Consultant..4 To track application5 To seek information6 To bank/treasury for making payment - Challan (applicable only for payment).7 To fulll requirement of physical presence.8 Others (Specify) Trip I II III IV V Purpose Time Purpose Time

51D.

Please see 12D if the number of trips is more than one, then ask: Why did you have to make more that one trip? It was required as per CTD procedure..1 To follow up, as there was delay on the part of CTD to provide service.2 Could not avail service in previous visit (s) as there was a long queue3 Concerned functionary was not available4 Counter was not operational....5 Documents/application submitted by me were incomplete....6 Others (Specify)

52D.

Do you think you had to wait excessively for availing service in any of the trips? Yes 1 No 2

17D

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53D.

Please specify the reasons for excessive wait Long queue1 Ofcials of CTD are inefcient (slow in processing).2 Processes are too complex & takes lot of time to complete...3 Too many applicants at ofce.4 Badly managed queue5 Some windows/counters were not operational6 Power breakdown....7 Computer/network connectivity failure..8 Others (Specify)

54D. 55D.

Please specify the travel cost incurred in making a round trip to CTD Ofce (INR) Please specify the travel cost incurred in making a round trip to Bank/ Treasury (INR) (APPLICABLE ONLY FOR PAYMENT) Total travel cost incurred in availing service (number of trips X travel cost per trip) INR Please specify the travel time spent in making a round trip to CTD Ofce (Min.) Please specify the travel time spent in making a round trip to Bank/Treasury (Min.) (APPLICABLE ONLY FOR PAYMENT) Total travel time spent in availing service (number of trips X travel time per trip) Min. How many times did you log-in to avail online service? [NOT APPLICABLE FOR MANUAL USERS] Please see the previous question if the number is more than one, then ask: Why did you have to log-in more than once? [NOT APPLICABLE FOR MANUAL USERS] Service was not available as server was slow........1 Portal was undergoing maintenance.......2 Templates had changed, therefore it had to be downloaded rst3 Others (Specify) What was the total time taken to complete transaction Online - it does not include time taken for data entry? (Min) [NOT APPLICABLE FOR MANUAL USERS] Do you think that the time taken to complete online transaction was excessive? Yes 1; No 2 28D [NOT APPLICABLE FOR MANUAL USERS] Why do you think are the reasons for excessive time in online transactions? Server is slow.1 Processes are complex and time consuming..2 Errors occur while uploading template.3 Others (Specify)

56D. 57D. 58D.

59D. 60D. 61D.

62D.

63D.

64D.

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65D.

66D. 67D. 68D.

Please calculate the amount spent as salary/wages on total time spent in availing service: traveling time + waiting time + time for online transaction (man-hours spent X wage per man-hour) {INR} THIS DOES NOT INCLUDE TIME TAKEN FOR FILLING FORMS, PREPARATION OF SUPPORTING DOCUMENTS AND DATA ENTRY Service Charge paid to CTD for which you got a receipt (INR) What was the total payment40 made by you for availing the service? (INR) What was the total elapsed time in availing service - how long did it take for the task to be completed, right from the date of applying to actually receiving the service applied for? (this does not include time taken for lling forms, preparation of supporting documents and data entry)? (Hours) IN CASE OF ONLINE USERS, TOTAL ELAPSED TIME IS THE TIME TAKEN TO COMPLETE THE TRANSACTION ONLINE PLUS TIME SPENT TO SUBMIT HARD COPIES TO CTD Manual Process Online Process Total Manual Process Online Process Total

69D. 70D.

Did you pay a bribe directly to Ofcials? Yes-1; No-2 Part E For what purpose did you pay the bribe indicated in the previous question? (Multiple responses) To avoid audit assessment by CT Department.1 To inuence functionaries to manipulate records in your favor..2 To expedite the process........3 Others (Specify) K. OVERALL ASSESSMENT

On a 5 point scale (Dissatised-1; Somewhat dissatised-2; Neutral-3; Somewhat satised-4; Very satised-5) please rate the following attributes (Online services for Treatment Group and Manual services for Comparison Group) FILING OF RETURNS 30E. Time and effort in ling returns 31E. Cost incurred in ling returns

32E. Design and layout of forms (templates in case of online services) PAYMENT OF TAX 33E. Time and effort in tax payment 34E. Security of monetary transactions COMMON ATTRIBUTES (Applicable For All Services) 36E. Overall quality of governance42 38E. Accuracy of transactions 40E. Time and effort in procuring forms

35E. Overall quality of service41

37E. Overall experience of availing service from CTD 39E. Condentiality and security of data

_____________ 40 41

Includes a) amount paid to department for which receipt was given, and b) amount paid as bribe to department staff/functionaries Quality of service is understood as fairness, speed of processing, accuracy of transactions, legibility and durability of certicates and printouts, convenience of obtaining service 42 Governance is understood as transparency, accountability and corruption-free working

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41E. Time and effort in accessing information 43E. Clarity and simplicity of processes and procedures 45E. Transparency43 in CTD 47E. Ability to inuence policies, rules and procedures through feedback 49E. Courtesy and helpfulness of Ofcials 51E. Complaint handling mechanism (including service provided by Call centre/Helpline) 53E. Queuing system at CTD Ofce

42E. Predictability of outcome 44E. Accountability of Ofcials 46E. Knowledge of Ofcials 48E. Level of corruption44 50E. Problem resolution45 52E. Convenience of working hours46

54E. Convenience of location of ofce (accessibility and ambience) 56E. Durability and legibility of certicates/re55E. Adherence to Citizen Charter47 ceipts 57E. Among the above given factors please list the three factors that you consider the most important RECORD THE S.NO. OF THE FACTOR
L. SUGGESTIONS48

1F.

Please give your suggestions in improving online services: (Multiple Responses) Eliminate practice of submission of hard copy to CTD.....a Server speed should be increasedb Tax Consultants should be allowed to make E-payment on behalf of their clients through Consultants Internet Banking A/C..................................................................................................................c Maintenance of website should not be done during Ofce Hours of Traders/Tax Consultants..d CTD ofcials should be given adequate training, so that they can handle queries on online services efciently.................................................................................................................................e Involve more Banks in E-payment..............................................f Provide templates(w.r.t. returns) that can perform data verication ofine........g Changes in processes/templates should be immediately communicated to dealers....h Others (Specify)

_____________ 43 44

Understanding and awareness of the basis on which decisions affecting you/other users are taken by ofcials Very corrupt-1; Somewhat corrupt-2; Neutral-3; Somewhat less corrupt-4; Not at all corrupt-5 45 Mechanism to rectify inadvertent errors in forms/documents submitted by Dealers to CTD e.g. computational errors/wrong gures 46 Hours of service in case of online services 47 Adherence of the time frame for service delivery (elapsed time) to that specied in citizens charter 48 This part is for all users - manual and online

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2F.

Please give your suggestions to increase use of online services: (Multiple Responses) Awareness campaigns on online services for dealers......a Establishment of Common Service Centres to facilitate E-services to all dealers.......b Online processes should be made much more user friendly and simple......c

Others (Specify)

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Annexure E

Field Work
At the Ward Level, two locations was selected on the basis on their distance from Ward Ofce one far and the other near. List of Dealers in the selected locations was obtained from CTD Dealers were randomly selected from the list. Number of dealers selected was about 10% more than the number of dealers to be interviewed in that Ward as dealers who outsource entire processes to CTPs could not be included in the study. Listing exercise was carried out among selected dealers, which helped us in collecting information such as turnover, services availed, mode used, dependence on CTPs etc. Based on information gathered through listing exercise, Dealers were classied as treatment/ control group Similarly, CTPs were also classied as treatment/control group. Contact details of CTPs were collected through listing exercise among Dealers

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Annexure F

Chhattisgarh: Dealers Using Optional Online Services


SECTION A: Identication Details
Table 1: Group wise frequency
Group Frequency Percent

Treatment (Online) Comparison (Manual)


Total

303 302
605

50.1 49.9
100.0

Table 2: Division and circle wise frequency Division Circle Raipur Circle 05 Bastar (Jagdalpur1) Raipur Circle 04 Raipur Circle 03 Raipur Circle 02 Mahasamund Raipur 01 Total Sarguja / Ambikapur Korba Bilaspur Circle 01 Total Durg Circle 02 Durg Circle 01 Rajnandgaon Total Treatment (Online) 39 66 23 14 10 7 12 171 18 18 18 54 26 26 26 78 Comparison (Manual) 30 28 28 28 28 28 0 170 18 18 18 54 26 26 26 78 Total 69 94 51 42 38 35 12 341 36 36 36 108 52 52 52 156

Raipur

Bilaspur

Durg

Table 3: Location and group wise frequency


Location Treatment (Online) Comparison (Manual) Total

Rural Urban Total

3 1.0% 300 99.0% 303 100.0%

0 .0% 302 100.0% 302 100.0%

3 .5% 602 99.5% 605 100.0%

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Impact Assessment of Commercial Taxes Computerization 2010-Chhattisgarh

SECTION B: Dealer Prole


Table 4: Constitution of enterprise Constitution of your enterprise Proprietor Partnership Private Limited Company Public Limited Company Total Treatment (Online) 166 54.8% 66 21.8% 63 20.8% 8 2.6% 303 100.0% Comparison (Manual) 255 84.4% 24 7.9% 21 7.0% 2 .7% 302 100.0% Total 421 69.6% 90 14.9% 84 13.9% 10 1.7% 605 100.0%

Table 5: Type of business Type of business Manufacture Wholesale Retail Export Hire purchase Work contract Food Drink Total Treatment (Online) 94 31.0% 103 34.0% 98 32.3% 0 .0% 0 .0% 7 2.3% 1 .3% 303 100.0% Comparison (Manual) 14 4.6% 117 38.7% 164 54.3% 3 1.0% 2 .7% 0 .0% 2 .7% 302 100.0% Total 108 17.9% 220 36.4% 262 43.3% 3 .5% 2 .3% 7 1.2% 3 .5% 605 100.0%

Table 6: VAT registration Registered for VAT Yes Total Treatment (Online) 303 100.0% 303 100.0% Comparison (Manual) 302 100.0% 302 100.0% Total 605 100.0% 605 100.0%

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Impact Assessment of Commercial Taxes Computerization 2010-Chhattisgarh

Table 7: CST registration Registered for CST Yes No Total Treatment (Online) 158 2.1% 145 47.9% 303 100.0% Comparison (Manual) 77 25.5% 225 74.5% 302 100.0% Total 235 38.8% 370 61.2% 605 100.0%

Table 8: Mode of maintenance of books of accounts Mode in which Books of Accounts are maintained within the organization Manual Computerized Total Treatment (Online) 10 3.3% 293 96.7% 303 100.0% Comparison (Manual) 250 82.8% 52 17.2% 302 100.0% Total 260 43.0% 345 57.0% 605 100.0%

Table 9: Number of staff involved in activities w.r.t Commercial Taxes Number of staff in the organization involved in activities related to Commercial Taxes 1 2 3 Total Treatment (Online) Comparison (Manual) Total

299 98.7% 4 1.3% 0 .0% 303 100.0%

269 89.1% 32 10.6% 1 .3% 302 100.0%

568 93.9% 36 6.0% 1 .2% 605 100.0%

SECTION C: Awareness And Usage of Online Services


Table 10: Awareness on online services Aware about online services provided by CTD Yes No Total Treatment (Online) 303 100.0% 0 .0% 303 100.0% Comparison (Manual) 121 40.1% 181 59.9% 302 100.0% Total 424 70.1% 181 29.9% 605 100.0%

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Impact Assessment of Commercial Taxes Computerization 2010-Chhattisgarh

Table 11: First source of awareness First source of awareness about online services Newspaper Television Dealers CTPs Commercial tax department ofcial Total Treatment (Online) 15 5.0% 23 7.6% 17 5.6% 118 38.9% 130 42.9% 303 100.0% Comparison (Manual) 4 3.3% 6 5.0% 15 12.4% 65 53.7% 31 25.6% 121 100.0% Total 19 4.5% 29 6.8% 32 7.5% 183 43.2% 161 38.0% 424 100.0%

Table 12: Awareness on online services Online services of CTD Application for issue of forms Filing Returns Payment of Taxes Information Dissemination Total Treatment (Online) 8 2.6% 251 82.8% 273 90.1% 133 43.9% 303 Comparison (Manual) 6 5.0% 100 82.6% 116 95.5% 34 28.1% 121 Total 14 351 389 167 424

Table 13: Usage of online services Used any of the online services provided by CTD Yes No Total Treatment (Online) 303 100.0% 0 .0% 303 100.0% Comparison (Manual) 0 .0% 121 100.0% 121 100.0% Total 303 71.5% 121 28.5% 424 100.0%

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Table 14: Reasons for using online services Reasons for using e-services Online process is faster Online process is more secure Fewer errors in online process Fewer visits to commercial taxes department Online process is more transparent Total Treatment (Online) 287 94.7% 203 67.0% 146 48.2% 155 51.2% 49 16.2% 303 Total 287 203 146 155 49 303

Table 15: Reasons for not using online services Reasons for not using e-services Do not have skills to use online services Do not have access to hardware/software Do not have access to internet Unreliable power situation Online process is prone to errors Online process is not secure Online process is slow Have to submit hard copy to ofce Others Total Comparison (Manual) 32 26.4% 42 34.7% 49 40.5% 6 5.0% 28 23.1% 13 10.7% 27 22.3% 28 23.1% 4 3.3% 121 Total 32 42 49 6 28 13 27 28 4 121

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Impact Assessment of Commercial Taxes Computerization 2010-Chhattisgarh

SECTION D: Time and Effort and Costs of Availing Services


Table 16: Time and cost of Filing of Returns Filing Returns Manual Computerized Change (C-M) Signicance Time and Cost of Preparation of Documents for Filing of Returns Man-hours were spent in compiling data 1.8175 1.0299 -.78758 ** N 254 175 S.E. .06218 .04345 Mode 2 1 Comment: Man-hours spent in compiling data for online dealers is signicantly lesser than that of manual users. Man-hours were spent for data entry in NA 0.6324 online template N 175 S.E. 0.0213 Mode .50 Total man-hours for preparation of 1.8175 1.6623 -.15518 * documents N 254 175 S.E. .06218 .05010 Mode 2 1.50 Comment: Total man-hours spent by online dealers in preparation of documents are signicantly lesser than that of manual users. This is despite the fact that online dealers have to enter data on online template. Salary/wages for preparation of documents 38.76 66.79 28.031 ** (INR) N 254 175 S.E. 2.519 4.659 Mode 25 78 Comment: Salary/wages spent for preparation of document is signicantly higher in the case of online dealers even though the total man-hors spent for this purpose is lesser than manual dealers. The only reason for this is that employees engaged in online ling of returns are paid higher salary/wages when compared to those engaged in manual ling of returns. Cost of stationery for preparation of 22.12 22.38 .259 NS documents (INR) N 254 175 S.E. 1.460 1.030 Mode 10 20 Cost of access to Internet (INR) NA 32.43 N 175 S.E. 1.432 Mode 15 Cost of Statutory Forms and other Forms 3.63 .23 -3.401 ** including courier charges (INR) N 254 175 S.E. .702 .161 Mode 0 0

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Filing Returns Manual Computerized Change (C-M) Signicance Comment: Online users are exempted from submitting some forms manually as they enter details on online template (However, they have to submit CST forms manually). Manual users, on the other hand, have to submit all forms manually. Service charge paid to Tax Consultant for 742.88 812.53 69.650 NS preparation of documents(INR) N 236 128 S.E. 44.322 45.748 Mode 500 1000 Total cost of preparation of documents 754.7480 716.1371 -38.6108 NS (INR) N 254 175 S.E. 44.49903 43.22974 Mode 268 158 Comment: There is no signicant difference between the two modes w.r.t total cost of preparation of documents. Time and Cost of Availing Services From Commercial Taxes Department Number of trips 1.05 1.02 -.024 NS N 254 175 S.E. .013 .020 Mode 1 1 Comment: Both manual and online users have to make at least one trip to CTD ofce Waiting time (Minutes) 39.3583 35.1287 -4.22961 * N 254 171 S.E. 1.61623 1.73660 Mode 30 30 Comment: Returns submitted by online users are not scrutinized as they have already submitted it online, while that of manual users are scrutinized hence the difference. Travel cost (INR) 19.99 31.12 11.125 ** N 254 171 S.E. 1.036 1.487 Mode 10 20 Travel time (Minutes) 33.55 40.71 7.166 ** N 254 171 S.E. 1.333 1.416 Mode 30 30 Number of times user had to log-in to avail NA 1.64 online service N 175 S.E. .053 Mode 1 Total time taken to complete transaction NA 14.05 Online (Minutes) N 175 S.E. .780 Mode 10 Comment: According to many online users the server was slow due to which the time taken to complete online transaction was excessive.

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Impact Assessment of Commercial Taxes Computerization 2010-Chhattisgarh

Filing Returns Manual Computerized Change (C-M) Signicance Amount spent as salary/wages on total time 24.37 56.63 32.258 ** spent in availing service (INR) N 254 175 S.E. 1.412 3.763 Mode 8 19 Comment: The difference seen is mainly because online users have to submit hard copy to CTD for which they have to make at least one trip and also spent time for online transaction. Besides, the wages of employees who are doing online transactions could be higher than that of employees that do manual transactions as using online services require higher skill level. Service Charge paid to department (INR) .00 .00 N 254 175 S.E. .000 .000 Mode 0 0 Service charge paid to Tax Consultant for 718.75 788.65 69.904 NS facilitating service from CTD Ofce (INR) N 236 130 S.E. 41.030 39.914 Mode 500 1000 Amount paid as bribe (INR) 2.6575 .0000 -2.65748 NS N 254 175 S.E. 2.65748 .00000 Mode 0 0 Total payment made (INR) 669.88 585.86 -84.025 NS N 254 175 S.E. 39.795 39.499 Mode 500 0 Time in availing service through Manual .6657 .5714 -.09438 ** process (Hours) N 254 175 S.E. .03177 .02978 Mode .50 .50 Comment: Returns submitted by online users are not scrutinized as they have already submitted it online, while that of manual users are scrutinized hence the difference. Time in availing service through Online NA .2345 process (Hours) N 175 S.E. .01339 Mode .16 Total elapsed time in availing service .6677 .8059 .13817 ** (Hours) N 254 175 S.E. .03174 .03819 Mode .50 .49 Comment: Total elapsed time is signicantly higher in the case of online users. This is because they have to spent time on online transactions in addition to the time spent in manual submission of hard copy to CTD Ofce.

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OTHER TABLES: Time and Cost of Filing Returns


Table 17: Dependence on CTP Processes were related to service outsourced Treatment (Online) 47 26.9% 128 73.1% 175 100.0% Comparison (Manual) 18 7.1% 236 92.9% 254 100.0% Total 65 15.2% 364 84.8% 429 100.0%

No, it was done completely in-house Yes, it was partially done by CTP Total

Table 18: Dependence on CTP Reasons for depending on CTP Treatment (Online) 44 34.4% 58 45.3% 24 18.8% 43 33.6% 128 Comparison (Manual) 165 69.9% 73 30.9% 36 15.3% 41 17.4% 236 Total 209 131 60 84 364

Due to lack of sufcient knowledge on processes To ensure accuracy of data given to department Want to avoid interface with Dep. ofcials Do not want to spent time on this Total

Table 19: Number of trips Number of trips need to make for the service Treatment (Online) 4 2.3% 163 93.1% 8 4.6% 175 100.0% Comparison (Manual) 0 .0% 242 95.3% 12 4.7% 254 100.0% Total

0 1 2 Total

4 .9% 405 94.4% 20 4.7% 429 100.0%

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Impact Assessment of Commercial Taxes Computerization 2010-Chhattisgarh

Table 20: Reasons for making more than one trip Reasons to make more that one trip Treatment (Online) 4 50.0% 2 25.0% 0 .0% 2 25.0% 8 100.0% Comparison (Manual) 4 33.3% 7 58.3% 1 8.3% 0 .0% 12 100.0% Total 8 40.0% 9 45.0% 1 5.0% 2 10.0% 20 100%

It was required -as per CTD procedure To follow up, a there was delay n the part of CTD to provide service Could not avail service in previous visit as there was a long queue Documents/application submitted by me were incomplete Total

Table 21: Waiting time for availing service Had to wait excessively for availing service in any of the trips Yes No Total Treatment (Online) 36 21.1% 135 78.9% 171 100.0% Comparison (Manual) 59 23.2% 195 76.8% 254 100.0% Total 95 22.4% 330 77.6% 425 100.0%

Table 22: Excessive waiting time for availing service Reasons for excessive wait Long queue/ Too many applicants at ofce/ Badly managed queue Ofcials of CTD are inefcient (slow in processing) Processes are too complex & take lot of time to complete Some windows/counters were not operational Total Treatment (Online) 29 80.6% 6 16.7% 0 .0% 1 2.8% 36 100.0% Comparison (Manual) 50 84.7% 5 8.5% 4 6.8% 0 .0% 59 100.0% Total 79 83.2% 11 11.6% 4 4.2% 1 1.1% 95 100.0%

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Table 23: Number of times user had to log-in for availing service Number of times log-in to avail online service 1 2 3 4 Total Frequency 82 78 11 4 175 Percent 46.9 44.6 6.3 2.3 100.0

Table 24: Number of times user had to log-in for availing service Reason for log-in more than once Service was not available as server was slow Frequency 93 Percent 100.0

Table 25: Time taken to complete online transaction Time taken to complete online transaction was excessive Yes No Total Frequency 87 88 175 Percent 49.7 50.3 100.0

Table 26: Time taken to complete online transaction Reasons for excessive time in online transactions Server is slow Processes are complex and time consuming Total Frequency 83 4 87 Percent 95.4 4.6 100.0

Table 27: Bribe paid Paid a bribe directly to Ofcials Treatment (Online) 0 .0% 175 100.0% 175 100.0% Comparison (Manual) 1 .4% 253 99.6% 254 100.0% Total 1 .2% 428 99.8% 429 100.0%

Yes No Total

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Impact Assessment of Commercial Taxes Computerization 2010-Chhattisgarh

Table 28: Purpose of bribes Purpose of bribe To inuence functionaries to manipulate records in our favor Total Comparison (Manual) 1 100.0% 1 100.0% Total 1 100.0% 1 100.0%

Table 29: Time and cost of Tax Payment Tax Payment Manual Computerized Change (C-M) Signicance

Time and Cost of Preparation of Documents for Payment Man-hours were spent in preparation of documents for .9333 0 -.93332 manual process N 229 205 S.E. .04815 0 Mode 1 0 Comment: In the manual mode users need to ll up information in Bank challan Man-hours were spent for data entry in online temNA .6358 plate N 205 S.E. .02468 Mode 0.5 Comment: Online users need to ll in payment details in the online template Total man-hours for preparation of documents .9333 .6358 -.29756 229 205 S.E. .04815 .02468 Mode 1 0.5 Comment: Total man-hours for entering payment details are signicantly less in the case of online dealers. Salary/wages for preparation of documents (INR) 17.32 17.30 -.021 N 229 205 S.E. 1.408 1.097 Mode 13 6 Cost of stationery for preparation of documents (INR) 13.12 11.67 -1.454 N 229 205 S.E. .882 .464 Mode 10 10 Cost of access to Internet (INR) NA 14.84 N 205 S.E. .540 Mode 10 Cost of Statutory Forms and other Forms including 0 0 courier charges (INR)

**

**

NS

NS

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Impact Assessment of Commercial Taxes Computerization 2010-Chhattisgarh

Tax Payment

Manual

Computerized

Change (C-M)

Signicance

N 229 205 S.E. 0 0 Service charge paid to Tax Consultant for preparation 287.50 386.54 99.038 NS of documents(INR) N 26 13 S.E. 43.173 97.057 Mode 0 0 Total cost of preparation of documents (INR) 63.083 68.3220 5.23898 NS N 229 205 S.E. 8.34526 8.92086 Mode 13 32 Comment: In terms of total cost of preparation of documents, there is no signicant difference between the two modes. Time and Cost of Availing Services From Commercial Taxes Department Number of trips 1.00 .00 -1 ** N 229 205 S.E. .000 .000 Mode 1 0 Comment: In the online mode, dealers can make payment online through their Bank Account. There is no need to visit Bank or CTD Ofce to make payment Waiting time (Minutes) 25.43 NA N 229 S.E. 1.074 Mode 10 Travel cost (INR) 11.54 NA N 229 S.E. .444 . Mode 10 Travel time (Minutes) 24.09 NA N 229 S.E. 1.162 Mode 20 Number of times user had to log-in to avail online servNA 1.45 ice N 205 S.E. .053 Mode 1 Total time taken to complete transaction Online (MinNA 13.91 utes) N 205 S.E. .606 Mode 10 Comment: Many dealers have complained that the server is slow. During the interviews, many dealers expressed their concern that they might loose money because of technical errors.

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Tax Payment

Manual

Computerized

Change (C-M)

Signicance

Amount spent as salary/wages on total time spent in 15.36 5.61 -9.748 ** availing service (INR) N 229 205 S.E. .944 .413 Mode 5 3 Comment: Online dealers do not have to make any trips or spent time traveling or waiting at ofces. Therefore they spend lesser on salary/wages when compared to manual dealers. Service Charge paid to department (INR) .00 .00 N 229 205 S.E. .000 .000 Mode 0 0 Service charge paid to Tax Consultant for facilitating 271.85 358.93 87.077 NS service from CTD Ofce (INR) N 27 14 S.E. 43.738 94.003 Mode 0 0 Amount paid as bribe (INR) .00 .00 N 229 205 S.E. .000 .000 Mode 0 0 Total payment made (Rs) 32.05 24.51 -7.540 NS N 229 205 S.E. 7.709 8.868 Mode 0 0 Time in availing service through Manual process .4326 .0000 -.43262 (Hours) N 229 205 S.E. .02048 .0000 Mode 0.16 0 Time in availing service through Online 0 .2547 -.2547 process (Hours) N 229 205 S.E. .00728 .02549 Mode 0 0.16 Total elapsed time in availing service (Hours) .4326 .2547 -.1779 ** N 229 205 S.E. .02267 .02549 Mode 0.16 0.16 Comment: Total elapsed time for availing service for online dealers is signicantly lesser than that of manual dealers.

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OTHER TABLES: Time and Cost of Tax Payment


Table 30: Dependence on CTP Processes were related to the service outsourced No, it was done completely in-house Yes, it was partially done by CTP Total Treatment (Online) 193 94.1% 12 5.9% 205 100.0% Comparison (Manual) 203 88.6% 26 11.4% 229 100.0% Total 396 91.2% 38 8.8% 434 100.0%

Table 31: Dependence on CTP Reasons for depending on CTP Due to lack of sufcient knowledge on processes Do not want to spent time on this Total Treatment (Online) 10 83.3% 2 16.7% 12 Comparison (Manual) 18 69.2% 8 30.8% 26 Total 28 10 38

Table 32: Number of trips Number of trips need to make for the service 0 1 Total Treatment (Online) 205 100.0% 0 .0% 205 100.0% Comparison (Manual) 0 .0% 229 100.0% 229 100.0% Total 205 47.2% 229 52.8% 434 100.0%

Table 33: Waiting time for availing service Q18D A Do you think you had to wait excessively for availing service in any of the trips Yes No Total Comparison (Manual) 42 18.3% 187 81.7% 229 100.0% Total 42 18.3% 187 81.7% 229 100.0%

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Table 34: Excessive waiting time for availing service Reasons for excessive wait Long queue/ Too many applicants at ofce/ Badly managed queue Ofcials of CTD are inefcient (slow in processing) Processes are too complex & take lot of time to complete Total Comparison (Manual) 35 83.4 3 7.1% 4 9.5% 42 100.0% Total 35 83.4% 3 7.1% 4 9.5% 42 100.0%

Table 35: Number of times user had to log-in for availing service Number of times log-in to avail online service 1 2 3 4 5 Total Frequency 133 60 7 1 4 205 Percent 64.9 29.3 3.4 .5 2.0 100.0

Table 36: Number of times user had to log-in for availing service Reason for log-in more than once Service was not available as server was slow Server was undergoing maintenance Total Frequency 71 1 72 Percent 98.6 1.4 100.0

Table 37: Time taken to complete online transaction Time taken to complete online transaction was excessive Yes No Total Frequency 84 121 205 Percent 41.0 59.0 100.0

Table 38: Time taken to complete online transaction Reasons for excessive time in online transaction Server is slow Processes are complex and time consuming Total Frequency 73 11 84 Percent 86.9 13.1 100.0

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Impact Assessment of Commercial Taxes Computerization 2010-Chhattisgarh

Table 39: Bribe paid Paid a bribe directly to Ofcials Treatment (Online) 0 .0% 205 100.0% 205 100.0% Table 40: Purpose of bribes Purpose of bribe To inuence functionaries to manipulate records in our favor Total Comparison (Manual) 1 100.0% 1 100.0% Total 1 100.0% 1 100.0% Comparison (Manual) 1 .4% 228 99.6% 229 100.0% Total 1 .2% 433 99.8% 434 100.0%

Yes No Total

SECTION E: Overall Assessment


Table 41: Overall Assessment Overall Assessment Time and effort in ling returns N S.E. Cost incurred in ling returns N S.E. Design and layout of forms (templates in case of online N S.E. Time and effort in tax payment N S.E. Security of monetary transactions N S.E. Overall quality of service N S.E. Overall quality of governance N Computerized 3.55 176 .072 3.79 176 .071 3.75 299 .054 3.74 223 .056 3.84 215 .055 3.97 301 .044 3.71 303 Manual 3.42 301 .056 3.52 297 .060 3.25 32 .191 3.46 300 .055 3.55 299 .054 3.68 302 .051 3.50 300 Change (C-M) .130 Signicance NS

.268

**

.496

**

.277

**

.290

**

.295

**

.213

**

201

Impact Assessment of Commercial Taxes Computerization 2010-Chhattisgarh

Overall Assessment S.E. Overall experience of availing service from CTD N S.E. Accuracy of transactions N S.E. Condentiality and security of data N S.E. Time and effort in procuring forms N S.E. Time and effort in accessing information N S.E. Predictability of outcome N S.E Clarity and simplicity of processes and procedures N S.E Accountability of Ofcials N S.E. Transparency in CTD N S.E. Knowledge of Ofcials N S.E. Ability to inuence policies, rules and procedures N S.E. Level of corruption N S.E. Courtesy and helpfulness of Ofcials N S.E. Problem resolution

Computerized .046 3.81 302 .046 3.92 303 .048 3.54 303 .057 3.69 302 .051 3.84 303 .051 3.61 303 .050 3.77 303 .050 3.42 303 .051 3.70 303 .049 3.52 303 .051 3.47 303 .054 2.82 303 .057 3.34 303 .051 3.52

Manual .052 3.65 301 .050 3.50 302 .055 3.57 302 .052 3.38 302 .055 3.32 302 .058 3.33 302 .058 3.41 302 .055 3.19 301 .059 3.43 302 .056 3.23 302 .059 3.27 302 .056 2.77 301 .058 3.22 302 .058 3.36

Change (C-M)

Signicance

.163

**

.421

**

-.032

NS

.308

**

.524

**

.283

**

.362

**

.230

**

.266

**

.293

**

.200

**

.041

NS

.121

NS

.166

**

202

Impact Assessment of Commercial Taxes Computerization 2010-Chhattisgarh

Overall Assessment N S.E. Complaint handling mechanism N S.E. Convenience of working hours N S.E. Queuing system at CTD Ofce N S.E. Convenience of location of ofce N S.E. Adherence to Citizen Charter N S.E. Dependence on CTPs N S.E. Durability and legibility of certicates/ receipts N S.E.

Computerized 303 .050 3.29 303 .047 3.75 303 .054 3.53 279 .068 3.87 303 .046 3.50 301 .046 3.81 303 .059 3.62 292 .049

Manual 301 .057 3.17 302 .056 3.45 301 .058 3.36 302 .062 3.57 302 .058 3.36 301 .050 3.51 299 .057 3.24 269 .067

Change (C-M)

Signicance

.118

NS

.294

**

.173

.305

**

.143

**

.297

**

.375

**

Composite Score
Table 42: Composite Score Respondents who Considered Factor to be Among Three Most Important a b Number Percentage (Column a/ Total of Column a) 4.5% 1.9% 2.1% 3.6% 3.5% Average of Individual Scores Improvement

Column No. Factor

c Computerized

d Manual

e Difference (Column c Column d) .130 .268 .496 .277 .290

F Weighted Score (Column e X Column b) 0.00585 0.005092 0.010416 0.009972 0.01015

Time and effort in ling returns Cost incurred in ling returns Design and layout of forms Time and effort in tax payment Security of monetary transactions

82 34 39 65 63

3.55 3.79 3.75 3.74 3.84

3.42 3.52 3.25 3.46 3.55

203

Impact Assessment of Commercial Taxes Computerization 2010-Chhattisgarh

Column No. Factor

Overall quality of service Overall quality of governance Overall experience of availing service from CTD Accuracy of transactions Condentiality & security of data Time and effort in procuring forms Time and effort in accessing information Predictability of outcome Clarity and simplicity of processes and procedures Accountability of Ofcials Transparency in CTD Knowledge of Ofcials Ability to inuence policies, rules and procedures through feedback Level of corruption Courtesy and helpfulness of Ofcials Problem resolution Complaint handling mechanism Convenience of working hours Queuing system at CTD Ofce Convenience of location of ofce Adherence to Citizen Charter Dependence on CTPs Durability and legibility of certicates/receipts Total (Sum of column)

Respondents who Considered Factor to be Among Three Most Important a b Number Percentage (Column a/ Total of Column a) 48 2.6% 125 6.9% 83 124 31 159 64 33 28 46 45 94 17 202 53 138 25 33 54 49 7 64 10 1815 4.6% 6.8% 1.7% 8.8% 3.5% 1.8% 1.5% 2.5% 2.5% 5.2% .9% 11.1% 2.9% 7.6% 1.4% 1.8% 3.0% 2.7% .4% 3.5% .6% 100.0%

Average of Individual Scores

Improvement

c Computerized

d Manual

e Difference (Column c Column d) .295 .213 .163 .421 -.032 .308 .524 .283 .362 .230 .266 .293 .200 .041 .121 .166 .118 .294 .173 .305 .143 .297 .375

3.97 3.71 3.81 3.92 3.54 3.69 3.84 3.61 3.77 3.42 3.70 3.52 3.47 2.82 3.34 3.52 3.29 3.75 3.53 3.87 3.50 3.81 3.62

3.68 3.50 3.65 3.50 3.57 3.38 3.32 3.33 3.41 3.19 3.43 3.23 3.27 2.77 3.22 3.36 3.17 3.45 3.36 3.57 3.36 3.51 3.24

F Weighted Score (Column e X Column b) 0.00767 0.014697 0.007498 0.028628 -0.00054 0.027104 0.01834 0.005094 0.00543 0.00575 0.00665 0.015236 0.0018 0.004551 0.003509 0.012616 0.001652 0.005292 0.00519 0.008235 0.000572 0.010395 0.00225 0.239095

204

Impact Assessment of Commercial Taxes Computerization 2010-Chhattisgarh

SECTION F: Suggestions
Table 43: Suggestions for improving online services Suggestions for improving e-services Eliminate practice of submission of hard copy of CTD Server speed should be increased Tax consultants should be allowed to make E-payment on behalf of their clients through Consultants Internet Banking A/C Maintenance of website should not be done during ofce hour CTD ofcials should be given adequate training, so that they can handle queries on online services efciently Involve more banks in e-payment Provide templates (w.r.t. returns) that can perform data verication ofine Changes in processes/templates should be immediately communicated Total 15.1% 170 8.6% 245 12.4% 1978 100.0% 49.4% 28.1% 40.5% 115 5.8% 137 6.9% 299 19.0% 22.6% Responses 447 22.6% 387 19.6% 178 9.0% Percent of Cases 73.9% 64.0% 29.4%

Table 44: Suggestions for increasing usage of online services Suggestions to increase use of e-service Responses 492 40.8% 286 23.7% 429 35.5% 1207 100.0% Percent of Cases

Awareness campaigns on online services for dealers Establishment of common service centres to facilitate e-services to all Online processes should be made much more user friendly & simple Total

81.3% 47.3% 70.9%

205

Impact Assessment of Commercial Taxes Computerization 2010-Chhattisgarh

Annexure G

Chhattisgarh: CTPs using Optional Online Services

SECTION A: Identication Details


Table 1: Group wise frequency Group Treatment (online) Comparison (manual) Total Frequency 111 90 201 Percent 55.2 44.8 100.0

Table 2: Division and circle wise frequency Division Circle Raipur Circle 05 Bastar (Jagdalpur1) Raipur Circle 04 Raipur Circle 03 Raipur Circle 02 Mahasamund Raipur 01(Extra) Sarguja / Ambikapur Korba Bilaspur Circle 01 Durg Circle 01 Total Durg Circle 02 Durg Circle 01 Rajnandgaon Total Treatment (online) 10 11 10 10 10 10 8 69 6 6 5 1 18 8 8 8 24 Comparison (Manual) 10 9 8 9 10 2 0 48 6 6 6 0 18 8 9 7 24 Total 20 20 18 19 20 12 8 117 12 12 11 1 36 16 17 15 48

Raipur

Total

Bilaspur

Durg

Table 3: Location and group wise frequency Location Rural Urban Total Treatment (online) 3 2.7% 108 97.3% 111 100.0% Comparison (manual) 0 .0% 90 100.0% 90 100.0% Total 3 1.5% 198 98.5% 201 100.0%

206

Impact Assessment of Commercial Taxes Computerization 2010-Chhattisgarh

SECTION B: CTP Prole


Table 4: Education of CTP Educational qualication of Tax Consultant Treatment (online) 47 42.3% 58 52.3% 6 5.4% 111 100.0% Comparison (manual) 20 22.2% 61 67.8% 9 10.0% 90 100.0% Total 67 33.3% 119 59.2% 15 7.5% 201 100.0%

CA LLB B.Com Total

Table 5: Years of experience of CTP Years of experience of Tax Consultant Treatment (online) 18 16.2% 40 36.0% 42 37.8% 11 9.9% 111 100.0% Comparison (manual) 12 13.3% 30 33.3% 29 32.2% 19 21.1% 90 100.0% Total 30 14.9% 70 34.8% 71 35.3% 30 14.9% 201 100.0%

5 Years 6-10 Years 11-15 Years >15 Years Total

Table 6: Number of staff involved in activities w.r.t Commercial Taxes Number of staff in the organization involved in activities related to Commercial Taxes 1 2 3 Total Treatment (online) 81 73.0% 25 22.5% 5 4.5% 111 100.0% Comparison (manual) 73 81.1% 13 14.4% 4 4.4% 90 100.0% Total 154 76.6% 38 18.9% 9 4.5% 201 100.0%

207

Impact Assessment of Commercial Taxes Computerization 2010-Chhattisgarh

Table 7: Computer literacy of CTP Tax Consultant is computer literate Treatment (online) 111 100.0% 0 .0% 111 100.0% Comparison (manual) 59 65.6% 31 34.4% 90 100.0% Total 170 84.6% 31 15.4% 201 100.0%

Yes No Total

Table 8: Experience in using online services Tax Consultant used any online e-Gov. service Treatment (online) 111 100.0% 0 .0% 111 100.0% Comparison (manual) 2 3.4% 57 96.6% 59 100.0% Total 113 66.5% 57 33.5% 170 100.0%

Yes No Total

SECTION C: Awareness and Usage of Online Services


Table 9: Awareness on online services Aware about online services provided by Commercial Taxes Department Yes No Total Treatment (online) 111 100.0% 0 .0% 111 100.0% Comparison (manual) 63 70.0% 27 30.0% 90 100.0% Total 174 86.6% 27 13.4% 201 100.0%

208

Impact Assessment of Commercial Taxes Computerization 2010-Chhattisgarh

Table 10: First source of awareness First source of awareness about online services Treatment (online) 22 19.8% 9 8.1% 27 24.3% 53 47.7% 111 100.0% Comparison (manual) 10 15.9% 2 3.2% 20 31.7% 31 49.2% 63 100.0% Total 32 18.4% 11 6.3% 47 27.0% 84 48.3% 174 100.0%

Newspaper Television Other CTPs Commercial tax department ofcial Total

Table 11: Awareness on online services Online services of CTD Treatment (online) 7 6.3% 108 97.3% 104 93.7% 64 57.7% 111 Comparison (manual) 5 7.9% 59 93.7% 62 98.4% 34 54.0% 63 Total 12 167 166 98 174

Application for issue of forms Filing Returns Payment of Taxes Information Dissemination Total

Table 12: Usage of online services Used any of the online services provided by CTD Treatment (online) 111 100.0% 0 .0% 111 100.0% Comparison (manual) 0 .0% 63 100.0% 63 100.0% Total 111 63.8% 63 36.2% 174 100.0%

Yes No Total

209

Impact Assessment of Commercial Taxes Computerization 2010-Chhattisgarh

Table 13: Reasons for using online services Reasons for using e-services Online process is faster Online process is more secure Fewer errors in online process Fewer visits to commercial taxes department Online process is more transparent Total Treatment (online) 95 85.6% 40 36.0% 32 28.8% 79 71.2% 52 46.8% 111 Total 95 40 32 79 52 111

Table 14: Reasons for not using online services Reasons for not using e-services Comparison (manual) 11 17.5% 21 33.3% 15 23.8% 2 3.2% 8 12.7% 6 9.5% 37 58.7% 38 60.3% 1 1.6% 63 Total 11 21 15 2 8 6 37 38 1 63

Do not have skills to use online services Do not have access to hardware/software Do not have access to internet Unreliable power situation Online process is prone to errors Online process is not secure Online process is slow Have to submit hard copy to ofce Others Total

210

Impact Assessment of Commercial Taxes Computerization 2010-Chhattisgarh

SECTION D: Time and Effort and Costs of Availing Services


Table 15: Time and cost of Filing of Returns ComputerChange Signicance ized (C-M) Time and Cost of Preparation of Documents for Filing of Returns Man-hours spent in preparation of documents for .8767 .5554 -.32123 ** manual process N 87 103 S.E. .07582 .03385 Mode .50 .50 Comment: Man-hours spent in compiling data for online dealers is signicantly lesser than that of manual users. Man-hours were spent for data entry in online temNA .4075 plate N 103 S.E. .01506 Mode .50 Total man-hours for preparation of documents .8767 .9629 .08625 NS N 87 103 S.E. .07582 .04305 Mode .50 1.00 Salary/wages for preparation of documents (INR) 14.38 17.67 3.291 ** N 87 103 S.E. 1.287 .970 Mode 6 7 Comment: Salary/wages spent for preparation of document is signicantly higher in the case of online users. This is because online users have to enter data in the online template. Cost of stationery (INR) 22.74 19.26 -3.473 NS N 87 103 S.E. 3.256 2.697 Mode 10 10 Cost of access to Internet (INR) NA 14.53 N 103 S.E. 1.806 Mode 10 Cost of Statutory Forms and other Forms includ5.59 2.65 -2.936 NS ing courier charges (INR) N 87 103 S.E. 2.137 .938 Mode 0 0 Total cost of preparation of documents (INR) 42.7011 54.1165 11.41536 NS N 87 103 S.E. 5.27258 4.81110 Mode 16.00a 37.00 Comment: There is no signicant difference between the two modes w.r.t total cost of preparation of documents. Filing Returns Manual

211

Impact Assessment of Commercial Taxes Computerization 2010-Chhattisgarh

ComputerChange Signicance ized (C-M) Time and Cost of Availing Service(for Filing of Returns) From Commercial Taxes Department Number of trips 1.06 1.01 -.048 NS N 87 103 S.E. .030 .010 Mode 1 1 Comment: Both manual and online users have to make at least one trip to CTD ofce Waiting time (Minutes) 36.0345 36.2621 .22765 NS N 87 103 S.E. 2.56190 1.88514 Mode 30.00 30.00 Travel cost (INR) 17.48 18.43 .944 NS N 87 103 S.E. 1.012 .970 Mode 10 10 Travel time (Minutes) 29.6552 32.3786 2.72347 NS N 87 103 S.E. 1.44810 1.51903 Mode 30.00 30.00 Number of times user had to log-in to avail online NA 2.17 service N 103 S.E. .225 Mode 2 Total time taken to complete transaction Online NA 15.53 (Minutes) N 103 S.E. .698 Mode 10 Comment: According to many online users the server was slow due to which the time taken to complete online transaction was excessive. Amount spent as salary/wages on total time spent 19.49 26.00 6.506 ** in availing service (INR) N 87 103 S.E. 1.259 1.245 Mode 14 21 Comment: The difference seen is mainly because online users have to submit hard copy to CTD for which they have to make at least one trip and also spent time for online transaction. Service Charge paid to department (INR) .00 .00 N 87 103 S.E. .000 .000 Mode 0 0 Amount paid as bribe (INR) .00 .00 N 87 103

Filing Returns

Manual

212

Impact Assessment of Commercial Taxes Computerization 2010-Chhattisgarh

Filing Returns

Manual

S.E. .000 Mode 0 Total payment made (Rs) .00 N 87 S.E. .000 Mode 0 Time in availing service through Manual process .6248 .5992 -.02560 NS (Hours) N 87 103 S.E. .04842 .03475 Mode .50 .50 Time in availing service through Online process NA .2619 .26194 (Hours) N 103 S.E. .01321 Mode .16 Total elapsed time in availing service (Hours) .6375 .8554 .21797 ** N 87 103 S.E. .05065 .04069 Mode .50 .66 Comment: Total elapsed time is signicantly higher in the case of online users. This is because they have to spent time on online transactions in addition to the time spent in manual submission of hard copy to CTD Ofce.

Computerized .000 0 .00 103 .000 0

Change (C-M)

Signicance

OTHER TABLES: Time and Cost of Filing Returns


Table 16: Number of trips Number of trips need to make for the service Treatment (online) 102 99.0% 1 1.0% 0 .0% 103 100.0% Comparison (manual) 83 95.4% 3 3.4% 1 1.1% 87 100.0% Total 185 97.4% 4 2.1% 1 .5% 190 100.0%

1 2 3 Total

213

Impact Assessment of Commercial Taxes Computerization 2010-Chhattisgarh

Table 17: Reasons for making more than one trip Reasons to make more that one trip Treatment (online) 1 100.0% 0 .0% 1 100.0% Comparison (manual) 3 75.0% 1 25.0% 4 100.0% Total 4 80.0% 1 20.0% 5 100.0%

It was required -as per CTD procedure To follow up, a there was delay on the part of CTD to provide service Total

Table 18: Waiting time for availing service Had to wait excessively for availing service in any of the trips Yes No Total Treatment (online) 47 45.6% 56 54.4% 103 100.0% Comparison (manual) 22 25.3% 65 74.7% 87 100.0% Total 69 36.3% 121 63.7% 190 100.0%

Table 19: Excessive waiting time for availing service Reasons for excessive wait Treatment (online) 45 95.7% 0 .0% 1 2.1% 1 2.1% 47 100.0% Comparison (manual) 19 86.3% 3 13.6% 0 .0% 0 .0% 22 100.0% Total 64 92.8% 3 4.3% 1 1.4% 1 1.4% 69 100.0%

Long queue/ Too many applicants at ofce Ofcials of CTD are inefcient (slow in processing) Processes are too complex & take lot of time to complete Some windows/counters were not operational Total

Table 20: Number of times user had to log-in for availing service Number of times log-in to avail online service 1 2 3 4 5 >5 Total Frequency 35 55 5 3 1 4 103 Valid Percent 34.0 53.4 4.9 2.9 1.0 4.0 100.0

214

Impact Assessment of Commercial Taxes Computerization 2010-Chhattisgarh

Table 21: Number of times user had to log-in for availing service Reasons to log-in more than once Service was not available as server was slow Templates had changed, therefore it had to be downloaded rst Total Frequency 67 1 68 Percent 98.5 1.5 100.0

Table 22: Time taken to complete online transaction Time taken to complete online transaction was excessive Yes No Total Frequency 43 60 103 Table 23: Time taken to complete online transaction Reasons for excessive time Server is slow Processes are complex and time consuming Total Table 24: Bribe paid Paid bribe directly to ofcials No Total Treatment (online) 103 100.0% 103 100.0% Comparison (manual) 87 100.0% 87 100.0% Total 190 100.0% 190 100.0% Frequency 38 5 43 Percent 88.4 11.6 100.0 Percent 41.7 58.3 100.0

Table 25: Time and cost of Tax Payment Tax Payment Manual Computerized Change (C-M) Signicance

Time and Cost of Preparation of Documents Man-hours were spent in preparation of .4550 0 documents for manual process N 44 37 S.E. .05996 0 Mode .25 .00 Comment: In the manual mode users need to ll up information in Bank challan Man-hours were spent for data entry in online NA .3732 template N 37 S.E. .03608

-.4550

**

215

Impact Assessment of Commercial Taxes Computerization 2010-Chhattisgarh

Tax Payment Manual Computerized Change (C-M) Signicance Mode .50 Comment: Online users need to ll in payment details in the online template Total man-hours for preparation of documents .4550 .3732 -.08176 NS N 44 37 S.E. .05996 .03608 Mode .25 .50 Salary/wages for preparation of documents (INR) 8.32 8.22 -.102 NS N 44 37 S.E. 1.564 1.104 Mode 4 3 Cost of stationery for preparation of documents 10.45 6.35 -4.103 NS (INR) N 44 37 S.E. 2.208 .910 Mode 10 10 Cost of access to Internet (INR) NA 6.70 N 37 S.E. .738 Mode 10 Cost of Statutory Forms and other Forms includ1.14 3.24 2.107 NS ing courier charges (INR) N 44 37 S.E. .647 2.741 Mode 0 0 Total cost of preparation of documents (INR) 19.9091 24.5135 4.60442 NS N 44 37 S.E. 3.29389 4.46031 Mode 15.00 4.00 Comment: In terms of total cost of preparation of documents, there is no signicant difference between the two modes. Time and Cost of Availing Services From Commercial Taxes Department Number of trips 1.00 .00 -1 ** N 44 37 S.E. .000 .000 Mode 1 0 Comment: In the online mode, users can make payment online through their Bank Account. There is no need to visit Bank or CTD Ofce to make payment thus users can save travel and waiting time and travel cost. It may be noted that currently CTPs are not allowed to make tax payments trough their accounts - it has to be done from the dealers account. One of the major suggestions from dealers and CTPs is to allow CTPs to make payments on behalf of their clients - through their bank accounts. Waiting time (Minutes) N S.E. 21.84 44 1.812 NA

216

Impact Assessment of Commercial Taxes Computerization 2010-Chhattisgarh

Tax Payment Manual Computerized Change (C-M) Signicance Mode 30 Travel cost (INR) 8.64 NA N 44 S.E. 1.094 Mode 10 Travel time (Minutes) 18.5682 NA N 44 S.E. 1.92029 Mode 30.00 Number of times user had to log-in to avail online NA 1.38 service N 37 S.E. .118 Mode 1 Total time taken to complete transaction Online NA 12.84 (Minutes) N 37 S.E. 1.017 Mode 10 Amount spent as salary/wages on total time spent 11.23 4.24 -6.984 ** in availing service (INR) N 44 37 S.E. 1.010 .464 Mode 8 3 Comment: Online users do not have to make any trips or spent time traveling or waiting at ofces. Therefore they spend lesser on salary/wages when compared to manual users. Service Charge paid to department (INR) .00 .00 N 44 37 S.E. .000 .000 Mode 0 0 Amount paid as bribe (INR) .00 .00 N 44 37 S.E. .000 .000 Mode 0 0 Total payment made (Rs) .00 .00 N 44 37 S.E. .000 .000 Mode 0 0 Time in availing service through Manual process .3957 .00 -.39568 (Hours) N 44 37 S.E. .03549 .00 Mode .50 .00

217

Impact Assessment of Commercial Taxes Computerization 2010-Chhattisgarh

Tax Payment Manual Computerized Change (C-M) Signicance Time in availing service through Online process .00 .2292 .22919 (Hours) N 44 37 S.E. .00 .02316 Mode .00 .16 Total elapsed time in availing service (Hours) .3843 .2292 -.15513 ** N 44 37 S.E. .03652 .02316 Mode .50 .16 Comment: Total elapsed time for availing service for online users is signicantly lesser than that of manual users.

OTHER TABLES: Time and Cost of Tax Payment


Table 26: Number of trips Number of trips need to make for the service 0 1 Total Treatment (online) 37 100.0% 0 .0% 37 100.0% Comparison (manual) 0 .0% 44 100.0% 44 100.0% Total 37 45.7% 44 54.3% 81 100.0%

Table 27: Waiting time for availing service Had to wait excessively for availing service in any of the trips Yes No Total Comparison (manual) 8 18.2% 36 81.8% 44 100.0% Total 8 18.2% 36 81.8% 44 100.0%

Table 28: Excessive waiting time for availing service Reasons for excessive wait Long queue/ Too many applicants at ofce/ Badly managed queue Total Comparison (manual) 8 100.0% 8 100.0% Total 8 100.0% 8 100.0%

218

Impact Assessment of Commercial Taxes Computerization 2010-Chhattisgarh

Table 29: Number of times user had to log-in for availing service Number of times log-in to avail online service 1 2 3 4 Total Frequency 27 7 2 1 37 Valid Percent 73.0 18.9 5.4 2.7 100.0

Table 30: Number of times user had to log-in for availing service Reasons to log-in more than once Service was not available as server was slow Frequency 10 Valid Percent 100.0

Table 31: Time taken to complete online transaction Time taken to complete online transaction was excessive Yes No Total Frequency 10 27 37 Valid Percent 27.0 73.0 100.0

Table 32: Time taken to complete online transaction Reasons for excessive time Server is slow Processes are complex and time consuming Total Frequency 8 2 10 Valid Percent 80.0 20.0 100.0

Table 33: Bribe paid Paid bribe directly to ofcials No 100.0% Total Treatment (online) 37 100.0% 37 100.0% Comparison (manual) 44 100.0% 44 100.0% Total 81 81 100.0%

219

Impact Assessment of Commercial Taxes Computerization 2010-Chhattisgarh

SECTION E: Overall Assessment


Table 34: Overall Assessment Overall Assessment Computerized Manual Change (C-M) -.064 Signicance

Time and effort in ling returns N S.E. Cost incurred in ling returns N S.E. Design and layout of forms (templates in case of online N S.E. Time and effort in tax payment N S.E. Security of monetary transactions N S.E. Overall quality of service N S.E. Overall quality of governance N S.E. Overall experience of availing service from CTD N S.E. Accuracy of transactions N S.E. Condentiality and security of data N S.E. Time and effort in procuring forms N S.E. Time and effort in accessing information N S.E. Predictability of outcome N S.E

3.21 103 .082 3.26 104 .104 2.92 106 .112 3.14 71 .095 3.45 69 .112 3.57 111 .083 3.45 111 .106 3.80 111 .103 3.39 111 .100 3.44 111 .105 3.30 111 .085 3.89 111 .107 3.37 111 .105

3.28 90 .082 3.34 88 .097 3.25 8 .412 3.36 90 .079 3.57 90 .091 3.85 89 .087 3.47 90 .111 3.60 89 .120 3.37 90 .111 3.31 89 .117 3.30 90 .105 3.70 89 .117 3.29 90 .112

NS

-.081

NS

-.325

-.215

-.117

NS

-.286

NS

-.016

NS

.206

NS

.021

NS

.127

NS

-.003

NS

.195

NS

.080

NS

220

Impact Assessment of Commercial Taxes Computerization 2010-Chhattisgarh

Overall Assessment Clarity and simplicity of processes and procedures N S.E Accountability of Ofcials N S.E. Transparency in CTD N S.E. Knowledge of Ofcials N S.E. Ability to inuence policies, rules and procedures N S.E. Level of corruption N S.E. Courtesy and helpfulness of Ofcials N S.E. Problem resolution N S.E. Complaint handling mechanism N S.E. Convenience of working hours N S.E. Queuing system at CTD Ofce N S.E. Convenience of location of ofce N S.E. Adherence to Citizen Charter N S.E. Durability and legibility of certicates/receipts N S.E.

Computerized 3.85 111 .108 3.24 111 .098 3.62 111 .121 3.34 111 .088 3.41 111 .095 2.98 110 .110 3.31 111 .090 3.50 111 .092 3.17 111 .098 3.60 110 .099 2.92 110 .106 3.75 111 .126 3.14 111 .083 3.24 111 .118

Manual 3.61 90 .109 3.22 90 .102 3.59 90 .115 3.23 90 .110 3.27 90 .093 2.90 90 .117 3.06 90 .102 3.27 89 .097 3.16 90 .104 3.37 90 .104 2.92 90 .125 3.77 90 .140 3.14 90 .098 3.47 90 .105

Change (C-M) .236

Signicance NS

.021

NS

.033

NS

.109

NS

.139

NS

.082

NS

.251

.226

.016

NS

.233

NS

-.004

NS

-.019

NS

-.009

NS

-.223

NS

221

Impact Assessment of Commercial Taxes Computerization 2010-Chhattisgarh

Composite Score
Table 35: Composite Score Respondents who Considered Factor to be Among Three Most Important a b Number Percentage (Column a/ Total of Column a) Average of Individual Scores c Computerized d Manual Improvement

Column No. Factor

e Difference (Column c Column d)

F Weighted Score (Column e X Column b) -0.00262 -0.00186 -0.03088 -0.00774 -0.00328 -0.00801 -0.00032

Time and effort in ling returns Cost incurred in ling returns Design and layout of forms Time and effort in tax payment Security of monetary transactions Overall quality of service Overall quality of governance Overall experience of availing service from CTD Accuracy of transactions Condentiality and security of data Time and effort in procuring forms Time and effort in accessing information Predictability of outcome Clarity and simplicity of processes and procedures Accountability of Ofcials Transparency in CTD

25 14 57 22 17 17 12

4.1% 2.3% 9.5% 3.6% 2.8% 2.8% 2.0%

3.21 3.26 2.92 3.14 3.45 3.57 3.45

3.28 3.34 3.25 3.36 3.57 3.85 3.47

-.064 -.081 -.325 -.215 -.117 -.286 -.016

12

2.0%

3.80

3.60

.206

0.00412

18 9 33 36 9

3.0% 1.5% 5.5% 6.0% 1.5%

3.39 3.44 3.30 3.89 3.37

3.37 3.31 3.30 3.70 3.29

.021 .127 -.003 .195 .080

0.00063 0.001905 -0.00017 0.0117 0.0012

20

3.3%

3.85

3.61

.236

0.007788

18 27

3.0% 4.5%

3.24 3.62

3.22 3.59

.021 .033

0.00063 0.001485

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Impact Assessment of Commercial Taxes Computerization 2010-Chhattisgarh

Column No. Factor

Respondents who Considered Factor to be Among Three Most Important a b Number Percentage (Column a/ Total of Column a)

Average of Individual Scores c Computerized d Manual

Improvement

e Difference (Column c Column d)

F Weighted Score (Column e X Column b) 0.001417

Knowledge of Ofcials Ability to inuence policies, rules and procedures through feedback Level of corruption Courtesy and helpfulness of Ofcials Problem resolution Complaint handling mechanism Convenience of working hours Queuing system at CTD Ofce Convenience of location of ofce Adherence to Citizen Charter Durability and legibility of certicates/receipts Total (Sum of column)

1.3%

3.34

3.23

.109

1.0%

3.41

3.27

.139

0.00139

58 24 32 13 15 35 38 3

9.6% 4.0% 5.3% 2.2% 2.5% 5.8% 6.3% .5%

2.98 3.31 3.50 3.17 3.60 2.92 3.75 3.14

2.90 3.06 3.27 3.16 3.37 2.92 3.77 3.14

.082 .251 .226 .016 .233 -.004 -.019 -.009

0.007872 0.01004 0.011978 0.000352 0.005825 -0.00023 -0.0012 -0.000045

25 603

4.1% 100.0%

3.24

3.47

-.223

-0.00914 0.002844

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Impact Assessment of Commercial Taxes Computerization 2010-Chhattisgarh

SECTION F: Suggestions

Table 36: Suggestions for improving online services Suggestions for improving e-services Eliminate practice of submission of hard copy of CTD Server speed should be increased Tax consultants should be allowed to make E-payment on behalf of clients Maintenance of website should not be done during ofce hour CTD ofcials should be given adequate training, so that the Involve more banks in e-payment Provide templates (w.r.t. returns) that can perform data verication ofine Changes in processes/templates should be immediately communicated to users Others Total Responses 166 146 74 38 44 113 82 99 1 763 Percent of Cases 21.8% 19.1% 9.7% 5.0% 5.8% 14.8% 10.7% 13.0% .1% 100.0% Persent 82.6% 72.6% 36.8% 18.9% 21.9% 56.2% 40.8% 49.3% .5%

Table 37: Suggestions for increasing usage of online services


Suggestions to increase use of e-service Awareness campaigns on online services for dealers Establishment of common service centres to facilitate e-services fro all Online processes should be made much more user friendly and simple Others Total 95 131 2 372 25.5% 35.2% .6% 100.0% 47.3% 65.2% 1% Responses 144 Percent of Cases 38.7% Percent 71.6%

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Gujarat Impact Assessment of Commercial Taxes Computerization 2010

Acknowledgments
We express our sincere thanks to the Department of Information Technology, Government of India for giving us the opportunity to conduct the assessment. For helping us conceptualize this study, we express our foremost thanks to Mr. R. Chandrashekhar, Secretary, Department of Information Technology & Prof. Subhash Bhatnagar, Adjunct Professor, IIM, Ahmedabad. We are extremely indebted to Mr. S. P Singh, Senior Director, DIT and Ms. Radha Chauhan, Principal Consultant, DIT, for entrusting us with this study. Mr. P.K. Pujari, Commissioner, Commercial Taxes Department, Government of Gujarat, has facilitated the survey at every stage many thanks to him. Ms. Vineeta Dixit, Principal Consultant, National e-Governance Division, DIT Ms. Sulakshana Bhattacharya, DIT, Ms. Shiffy Thankam Varkey, DIT and Ms. Nupur Singh, In-charge, Center for Electronic Governance, IIMA provided us with constant help and support. We express our sincere gratitude to them. Our heart felt gratitude to all Field Supervisors and Investigators who carried out the survey.

Director, RDI

227

Table of Contents

1.0 Introduction ..............................................................................................................................231 2.0 Prole of Respondents .............................................................................................................234 3.0 Awareness and Usage of Online Services ...............................................................................234 4.0 Time, Effort and Cost of Availing Services.............................................................................235 5.0 Overall Assessment..................................................................................................................250 6.0 Suggestions of Respondents .....................................................................................................251 7.0 Opinion of Service Providers ....................................................................................................252 8.0 Recommendations for Improving Online Services ...................................................................252 Annexure A: Sampling Methodology ..........................................................................................254

Annexure AI: Quasi-Experimental Design: Nonequivalent Groups Design (Post-test Only) ...259 Annexure AII: QUASI-EXPERIMENTAL DESIGN: PROXY PRETEST DESIGN ...............260 Annexure B: Annexure C: Annexure D: Annexure E: Annexure F: Annexure G: Annexure H: Annexure I: Annexure J: Annexure K: Listing Schedule .....................................................................................................261 Interview Schedule for Dealers (Optional) .............................................................263 Interview Schedule for Dealers (Mandatory) .........................................................270 Interview Schedule for CTPs (Optional) ................................................................276 Interview Schedule for CTPs (Mandatory) ............................................................282 Field Work ..............................................................................................................288 Tables - Dealers Using Optional Online Services .................................................289 Tables - Dealers Using Mandatory Online Services ............................................306 Tables - CTPs Using Optional Online Services ....................................................317 Tables - CTPs Using Mandatory Online Services .................................................332

228

Abbreviations and Acronyms


DIT Department of Information Technology

IIMA Indian Institute of Management, Ahmedabad CTP Commercial Taxes Practitioner

CTD Commercial Taxes Department

229

Executive Summary
The Commercial Taxes Department of Gujarat has introduced some online services for dealers. Major services include e-ling of returns and issue of statutory forms. The primary objective of this study was to assess the impact of online services on end users (Dealers and Commercial Taxes Practitioners). In order to gather information from end users, a survey was undertaken. Four different interview schedules were used in the survey, which covered 805 users in four Divisions of Gujarat. This report summarizes major ndings of this survey. Awareness and Usage of Online Services Data obtained from Commercial Taxes Department, Gujarat showed that the number of users of online services is limited. Among dealers, lack of awareness about e-services, is one of the major reasons for this - 45.6% of comparison group (manual mode users) were not aware of online services. However, among CTPs awareness is not an issue - as 74.3% of comparison group CTPs were aware of online services. Time, Effort and Cost of Availing Service: Filing Returns Preparation of documents: With respect to total cost of preparation of documents, there isnt any signicant difference between online and manual modes of service delivery. Submitting returns to CTD: Both manual and online users have to make at least one trip to CTD ofce - manual users to submit their returns and online users to submit hard copy of e-returns. Online service, therefore, has not been successful in terms of eliminating visits to ofce. In terms of total elapsed time in availing service, there isnt any signicant difference between the two modes. There is a need to make this service (e-returns) end-to-end by eliminating the need to visit ofce (for submission of hard copies of returns). Moreover, online templates should be made much more user friendly this could reduce the time and cost involved in preparation of documents. Time, Effort and Cost of Availing Service: Obtaining Statutory Forms This online service has had signicant impact it has eliminated trips to ofce for obtaining statutory forms (as it is delivered to dealers by courier service) and signicantly reduced bribes (as there is no need for user to meet ofcials). However, total elapsed time in availing service is signicantly higher in the case of online mode CTD must ensure that forms are delivered within 15 days of receipt of application.

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Impact Assessment of Commercial Taxes Computerization 2010-Gujarat

1.0 Introduction
The Department of Information Technology (DIT), Government of India, is mandated to periodically assess impact of Mission Mode Projects (MMPs) on end users. In line with this, the rst round of assessment was carried out in 2008 during which some Central and State MMPs were assessed. The framework for this study was developed by the Centre for Electronic Governance (CEG) of IIMA. Eleven empanelled Market Research agencies carried out surveys among end users across India, analyzed data and presented reports. In the current round of assessment (2nd round) RDI has been entrusted with impact assessment of commercial taxes e-governance projects in ve States viz. Rajasthan, Chhattisgarh, Gujarat, Andhra Pradesh and Tamil Nadu. This report will discuss, in detail, impact of commercial taxes e-governance projects in Gujarat. The broad framework for this study has been developed by IIMA. RDI was primarily responsible for conducting pilot study, developing research design and sampling methodology, modifying interview schedules (that was developed by IIMA and used in the 1st round), survey, analysis and preparation of State level reports. 1.1 Objectives of the study Commercial Taxes Department (CTD) of Gujarat has introduced many online services for dealers including ling of returns1 , payment2 and application for statutory forms3. This study was commissioned primarily to assess the impact of online services on end users. Interview schedule designed for the study has ve major sections, each with specic objectives: 1. 2. User Prole: To form a prole of end users - dealers and Commercial Taxes Practitioners (CTPs). Awareness and Usage of Online Services: To understand the extent of awareness and usage of various online services. In addition, this section will also give information as to why certain users prefer online services over manual services and vice versa. Time, Effort and Cost of Availing Services: To assess the impact of online services on factors including number of trips for availing service, waiting time, salary/wages spent for availing service, total payment made and total elapsed time in availing service. Overall Assessment: Perception of users regarding certain key attributes of the service delivery was captured in this section. Attributes included overall quality of service and overall quality of governance. Suggestions: In this section we have captured suggestions of users on improving online services and increasing usage of online services.

3.

4.

5.

__________ 1

Electronic service delivery launch date: November 2006 Electronic service delivery launch date: April 2009 3 Electronic service delivery launch date: July 2008
2

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Impact Assessment of Commercial Taxes Computerization 2010-Gujarat

1.2 Research design and sampling methodology


Table 1: Percentage of Online and Manual Users Service VAT (%) Manual Online Mandatory Online Services 100% 100% 100% Optional Online Services 88.46% 11.54% NA NA NA NA CST (%) Manual Online 100% 100% 100% NA NA NA NA NA NA

Application of statutory forms4 Application for Registration/Cancellation5 Application for Refunds6 Filing of returns (1/4/2006 to 5/6/2009) Payment Information Dissemination

Source: Commercial Taxes Department, Gujarat

There were several factors that had to be taken in to account while developing research design and sampling methodology for this study: 1. 2. There were about six major online services in Gujarat in 2009. Table 1 give details of online services in the State and service wise percentage of users There were three mandatory online services: application of statutory forms, application for registration/cancellation and application for refunds and three optional online services: ling of returns7 , payment8 and information dissemination During pilot study we understood that many dealers in Gujarat relied (either partially or fully) on Commercial Taxes Practitioners (CTP) for availing services including registration, ling returns and payment. Users of online services would therefore include Dealers and CTPs (who were availing service on behalf of their clients) and we had to cover both categories of users in this study

3.

After factoring in the above mentioned points, two types of Quasi-Experimental Design were adopted for the study: I. Non-equivalent Groups Design - with treatment and comparison groups for Optional Online Services

__________

Only application can be made online forms are send through courier service. Online application for statutory and other forms started in July 2008 Only application can be made online it is not an end-to-end service 6 Only application can be made online it is not an end-to-end service (since October 2008) 7 E-returns is mandatory for dealers with annual turnover of more than one crore. However, this service was considered optional because there are a large number of dealers who have turnover below one crore 8 Since this service was introduced, 1430 dealers have availed e-payment - separate gures for VAT and CST are not available. E-payment has been made mandatory for dealers who pay more than Ten Lakh rupees as tax annually (since April 2009)
5

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Impact Assessment of Commercial Taxes Computerization 2010-Gujarat

II. Proxy Pretest Design for Mandatory Online Services Multi Stage Random Sampling has been used in this study. The sampling methodology factored in activity level and geographical location for selection of Divisions, Ranges and Ghataks. Please refer Annexure A for details on research design and sampling methodology. 1.3 Interview schedules As there were two different research designs, two different interview schedules were developed one for optional online services and the other for mandatory online services. Apart from this, separate interview schedules for dealers and CTPs were also designed. Thus altogether four different interview schedules were used in this study: 1. 2. 3. 4. Interview schedule for dealers: optional online services Interview schedule for dealers: mandatory online services Interview schedule for CTPs: optional online services Interview schedule for CTPs: mandatory online services Interview schedules are given in Annexure C - F. 1.4 Listing and Field work To select dealers and CTPs for this study and to classify them as respondents for optional online service (treatment/control group) or mandatory online service, we needed several key-information. Listing exercise was carried out among dealers and CTPs in selected wards to gather following information: 1. Services availed: Optional services used in last three months (90 days) and mode of service used (online/manual) this is needed to classify dealers and CTPs as control or treatment group. Mandatory service availed and mode of service to see if the dealer/CTP can be a respondent for mandatory service Whether processes w.r.t services used were done in-house or CTPs assistance was taken (partially/ fully). If the dealer is completely relying on CTP there is no point in interviewing the dealer as he/she will not be able to answer most questions in the interview schedule. In such cases the CTP was interviewed. Address of CTP - in case CTPs assistance was sought

2.

3.

Field work (survey) in Gujarat was carried out during September - November 2009. Listing schedule used for this study is given in Annexure B and details regarding eld work are given in Annexure G. 1.5 Outline of Report The report has ve sections User Prole, Awareness and Usage of Online Services, Time, Effort and Cost of Availing Services, Overall Assessment and Suggestions each corresponding to a section of the interview schedule:

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Impact Assessment of Commercial Taxes Computerization 2010-Gujarat

2.0 Prole of Respondents


The survey covered 805 respondents (Dealers and Commercial Taxes Practitioners) in four Divisions of Gujarat. The table below gives details of users covered. Detailed (questionnaire wise) tables are given in Annexure H - K.
Table 2: Users covered Users Of Optional Online Services 391 [Treatment/Online:196 & Comparison/Manual:195] 148 [Treatment/Online:74 & Comparison/Manual: 74] Users Of Mandatory Online Services 192 74

Dealers Commercial Taxes Practitioners Dealers Commercial Taxes Practitioners

3.0 Awareness and Usage of Online Services


Data obtained from Commercial Taxes Department, Gujarat showed that the number of users of optional online services, especially ling of returns, is limited (Please refer Table 1). Therefore one of the objectives of this study was to nd out the reasons for low usage of online services. 3.1 Reasons for low usage of Online Services Dealers: Among the comparison group 45.6% were not aware of online services this highlights the need for awareness generation among dealers. Those dealers who were aware (54.4%) avoided using online services because of various reasons major ones are given below: Do not have skills to use online services Do not have access to internet Online process is prone to errors Have to submit hard copy to ofce

CTPs: Unlike Dealers, most comparison group CTPs (74.3%) were aware of online services. However, these CTPs (who were aware) chose not to use online services because of the following major reasons: Do not have skills to use online services Online process is prone to errors Do not have access to hardware/software

3.2 Major reasons for using Online Services Major reasons given by Dealers & CTPs for using online services are: Online process is faster

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Impact Assessment of Commercial Taxes Computerization 2010-Gujarat

Online process is more secure Fewer errors in online process Fewer visits to commercial taxes department Online process is more transparent

Detailed (questionnaire wise) tables are given in Annexure H - K.

4.0 Time, Effort and Cost of Availing Services


In this section we shall analyze time, effort and cost incurred in availing the following services: Filing of returns and obtaining statutory forms. Other services could not be analyzed as there werent sufcient responses for them it may be noted that services like registration and refunds are not frequently used services. As mentioned in section 1.0 there are two different types of services optional and mandatory and two categories of users dealers and CTPs w.r.t services of CTD. Therefore each of them will be discussed separately in this section. 4.1 Filing Returns (Optional Online Service) Dealers registered with the CTD are required to le returns periodically, monthly/quarterly/annually depending on turnover of dealer, in a prescribed format. Filing Returns has two major components: I. Preparation of documents: Time and cost in compiling data, preparation of documents and data entry in online template. II. Submitting returns to CTD: Time and cost in submitting return documents to CTD and getting receipt of submission Most dealers (manual and online) take help from CTPs for either one or both components mentioned above, mainly because: dealers lack sufcient knowledge to prepare returns; they want to ensure that the data submitted to CTD is free of errors. There are several differences between manual and online mode of ling of returns. Major differences are given below:

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Impact Assessment of Commercial Taxes Computerization 2010-Gujarat

Table 3: Differences between manual and online mode of ling of returns Manual Online

1. Return documents are prepared manually 1. Dealer downloads templates for Return Filling from CTD website this is a one (using various forms such as VAT forms, time activity, unless changes in template are CST forms) in the format specied by the brought about by the CTD department 2. Dealer submits the original return documents 2. Dealer compiles data as per the templates some dealers take a print out of the template to CTD. After verication of return documents and ll it up manually by the clerk/CTI, the dealer receives a receipt of submission 3. Data is entered in the template 3. An ofce copy of the return documents is 4. Template is uploaded and dealer receives an maintained by the Dealer acknowledgement from CTD 4. There is no service charge for ling returns 5. Dealer has to submit a hard copy of the return (print out of template) to CTO Ofce and receive a receipt of submission - receipt is given without verication as the dealer has already submitted return online 6. There is no service charge for ling returns

Respondents were asked to provide details on time, effort and cost incurred in ling returns. Responses of 391 dealers (Treatment/Online: 196 & Comparison/Manual: 195) and 148 CTPs (Treatment/Online: 74 & Comparison/Manual: 74) has been analyzed using Independent-Samples T Test and results are given in Tables 4 &5. Please refer Annexure H & J for details. 4.1.1 Time and Cost of Preparation of Documents for Filing of Returns In this section we shall examine how online ling of returns has impacted dealers and CTPs quantitative data obtained through the survey and qualitative data from led observations shall be used in conjunction for this purpose.

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Impact Assessment of Commercial Taxes Computerization 2010-Gujarat

Total man-hours for preparation of documents


Table 4: Total man-hours for preparation of documents9 for Filing of Returns Filing Returns Dealer Manual 5.5361
2.9527

Computerized 4.6443
3.2196

Change (C-M) -.89187


.26689

Signicance *

CTP

NS

Total man-hours for preparation of documents


6 5 4 3 2 1
0.26689 2.9527 5.5361 4.6443 3.2196

0 -1 -2

-0.89187

Manual

Computerized

Change (C-M)

Dealers

CTPs

Dealers: Total man-hours spent in preparation of documents are signicantly lower for online dealers. CTPs: There is no signicant difference between the two modes as far as total man-hours for preparation of documents is concerned.

____________
4

This includes man-hours spent in compiling data and man-hours were spent for data entry in online template

237

Impact Assessment of Commercial Taxes Computerization 2010-Gujarat

Total cost of preparation of documents


Table 5: Total cost of preparation of documents10 (INR) Filing Returns Dealer CTP Manual 659.8494 210.1486 Computerized 629.4393 204.5541 Change (C-M) -30.41009 -5.59459 Signicance NS NS

Total Cost of Preparation of Documents (INR)


700 600 500 400 300 200

659.8494

629.4393

210.1486
100

204.5541 -30.41009

0 -100

-5.59459

Manual

Computerized

Change (C-M)

Delers

CTPs

With respect to total cost of preparation of documents, there isnt any signicant difference between the two modes of service delivery.

__________ 10 This includes amount spent as salary/wages for preparation of documents, expenses on stationery, cost of Internet, cost of Statutory Forms and other Forms including courier charges and Service charge paid to Tax Consultant for preparation of documents

238

Impact Assessment of Commercial Taxes Computerization 2010-Gujarat

4.1.2 Time and Cost of Submitting Documents for Filing Returns Number of trips for Filing Returns
Table 6: Number of trips Filing Returns Dealer CTP Manual 1.42 1.46 Computerized 1.25 1.42 Change (C-M) -.173 -.041 Signicance ** NS

1.6 1.4 1.2 1 0.8 0.6 0.4 0.2 0 -0.2

Number of Trips

1.42 1.46 1.25 1.42

-0.173

-0.041

Manual
-0.4

Computerized

Change (C-M)

Dealers

CTPs

Dealers: Both manual and online users have to make at least one trip to CTD ofce. Manual users, however, had to make more number of trips. CTPs: There is no difference between the two modes in terms of number of trips made for availing service.

239

Impact Assessment of Commercial Taxes Computerization 2010-Gujarat

Waiting time11 for Filing Returns


Table 7: Waiting time (Minutes) Filing Returns Dealer CTP Manual 52.95 57.2297 Computerized 47.86 64.9324 Change (C-M) -5.09 7.70270 Signicance NS NS

Waiting time (Minutes)


70 60 64.9324 50 40 30 20 10 7.7027 0 -10 -5.09 52.95 57.2297 47.86

Manual

Computerized

Change (C-M)

Dealers

CTPs

There is no signicant difference between manual and online modes w.r.t waiting time.

__________ 11

Time spent in queue and transaction time at counter

240

Impact Assessment of Commercial Taxes Computerization 2010-Gujarat

Amount spent as salary/wages on total time spent in availing service12


Table 8: Amount spent as salary/wages on total time spent in availing service (INR) Filing Returns Dealer CTP Manual 42.51 44.42 Computerized 73.74 57.43 Change (C-M) 31.228 13.014 Signicance ** *

80 70 60

Amount spent as salary/wages on total time spent in availing service

73.74 50 57.43 40 30 20 10 0 42.51 44.42 31.228 13.014

Manual
Dealers

Computerized

Change (C-M)
CTPs

Online users have to submit hard copy to CTD for which they have to make at least one trip and also spent time for online transaction - hence the difference between manual and online modes.

__________ 12

Traveling time + waiting time + time for online transaction (man-hours spent X wage per man-hour)

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Impact Assessment of Commercial Taxes Computerization 2010-Gujarat

Total payment made13for Filing Returns


Table 9: Total payment Made (INR) Filing Returns Dealer CTP Manual 306.4 43.24 Computerized 298.05 25.68 Change (C-M) -8.357 -17.568 Signicance NS NS

350 300 250 200 150 100 50

Total Payment Made (INR)

306.4 298.05

43.24
0 -50

-8.357 25.68

-17.568

Manual

Computerized

Dealers

Change (C-M) CTPS

There is no difference between the two modes as far as total payment is concerned.

__________

Includes a) service charge paid to CTP, b) amount paid to department for which receipt was given, and c) amount paid as bribe to department staff/ functionaries

13

242

Impact Assessment of Commercial Taxes Computerization 2010-Gujarat

Time in availing service through manual process


Table 10: Time in availing service through manual process Filing Returns Dealer CTP Manual 2.5857 5.2218 Computerized 1.4839 5.1239 Change (C-M) -1.10185 -.09784 Signicance NS NS

Time in availing service through Manual process (Hours)


6 5

5.2218
4 3 2

5.1239

2.5857
1

1.4839
0

-0.09784 -1.10185

-1

Manual
-2

Computerized

Change (C-M)

Dealers

CTPs

The difference between manual and online modes is not statistically signicant.

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Impact Assessment of Commercial Taxes Computerization 2010-Gujarat

Total elapsed time in availing service


Table 11: Total elapsed time in availing service Filing Returns Dealer CTP Manual 2.7348 5.2215 Computerized 2.2576 6.2508 Change (C-M) -.47719 1.02932 Signicance NS NS

Total Elapsed Time in Availing Service (Hours)


7 6

6.2508
5

5.2215
4 3 2

2.7348
1

2.2576 1.02932

0 -1

-0.47719

Manual

Computerized

Change (C-M)

Dealers

CTPs

There is no signicant difference between the two modes as far as total elapsed time in availing service is concerned.

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Impact Assessment of Commercial Taxes Computerization 2010-Gujarat

4.2 Obtaining Statutory Forms (Mandatory Online Service)


Table 12: Difference between Manual & Online processes of obtaining statutory forms

Manual

Online

1. To obtain CST forms dealers had to 1. To obtain CST forms (C, F, H forms etc.) the dealer sends an online application to CTD give application to CTD number of forms required and details regarding forms received earlier were given in the application 2. After verication of application, dealers 2. After verication of application, statutory were given CST Forms as per their forms are dispatched to dealers through courier requirement dealer had to collect the service forms from CTO Ofce 3. There was no service charge but dealers 3. There is no service charge. However, dealers had to pay some amount towards cost of have to pay Rs. 200/ annually towards courier Statutory Forms charges 4. In manual mode dealer had to visit 4. In online mode dealers do not have to visit CTO Ofce at least once to obtain CST CTO Ofce to obtain CST Forms as they are Forms dispatched through courier service

As part of the survey 192 dealers and 74 CTPs were interviewed for gathering information on the service: obtaining statutory forms. As mentioned earlier, proxy-pretest design has been used all respondents had to answer questions regarding manual mode of service that they had used some time in the past (manual mode is not in existence now) and online mode that they used recently. PairedSamples T Test has been used to analyze data.

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Impact Assessment of Commercial Taxes Computerization 2010-Gujarat

Number of trips
Table 13: Number of trips Obtaining forms Dealer CTP Manual 1.33 1.51 Computerized .00 .00 Change (C-M) -1.333 -1.514 Signicance ** **

2 1.5 1

Number of Trips

1.51 1.33

0.5 0 -0.5 -1 -1.5 -2

Manual

Computerized

Change (C-M)
-1.333 -1.514

Dealers

CTPs

None of the online users visited CTD to obtain statutory forms. Clearly, online service has helped users - it has eliminated trips to ofce and thus saved waiting and travel time and travel cost.

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Impact Assessment of Commercial Taxes Computerization 2010-Gujarat

Amount spent as salary/wages on total time spent in availing service14


Table 14: Amount spent as salary/wages on total time spent in availing service (INR) Obtaining forms Dealer CTP Manual 59.84 45.62 Computerized 15.03 13.64 Change (C-M) -44.818 -31.986 Signicance ** **

80

Amount spent as salary/wages on total time spent in availing service

60 59.84 45.62

40

20 15.03 13.64

Manual
-20

Computerized

Change (C-M)
-31.986 -44.818

-40

Dealers
-60

CTPs

Online users did not visit CTD Ofce to obtain forms - thus saving salary/wages that would have been spent for waiting time and travel time.

__________ 14

Traveling time + waiting time + time for online transaction (man-hours spent X wage per man-hour)

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Impact Assessment of Commercial Taxes Computerization 2010-Gujarat

Total payment made15


Table 15: Total payment made (INR) Obtaining forms Dealer CTP Manual 107.99 72.30 Computerized 8.23 0 Change (C-M) -99.765 -72.297 Signicance ** **

Total Payment Made (INR)


150

100 107.99 50 72.3 8.23 0 0

Manual
-50

Computerized

Change (C-M)
-72.297 -99.765

-100

Dealers
-150

CTPS

Please note that the only payment made for this service is bribes - as there is no service charge to be paid to CTD and none of the dealers paid any service charge to CTP. Online users do not have to approach CTD ofcials for statutory forms. Therefore, there has been signicant reduction in bribes for this service.

___________ 15

Includes a) amount paid to department for which receipt was given, and c) amount paid as bribe to department staff/functionaries

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Impact Assessment of Commercial Taxes Computerization 2010-Gujarat

Total elapsed time in availing service


Table 16: Total elapsed time in availing service (Hours) Obtaining forms Dealer CTP Manual 147.83 147.11 Computerized 337.66 375.95 Change (C-M) 189.828 228.838 Signicance ** **

Total Elapsed Time in Availing Service (Hours)


400 350 300 250 200

375.95 337.66

228.838
150 100 50 0

147.83

147.11

189.828

Manual

Computerized

Change (C-M)

Dealers

CTPs

The data shows that there has been signicant increase in total elapsed time for availing service. This is because of the following reasons: In the online mode, statutory forms are sent through courier service after receipt of application from users. According to many users, addresses of dealers in CTD database are incorrect (mainly because they are not regularly updated) - consequently forms are sent to wrong addresses causing delays Delay in processing online applications and dispatching forms by Ofcials was also reported by users

In the manual mode, dealers used to visit CTD ofce to obtain forms - sometimes bribes were paid to speed up the process.

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5.0 Overall Assessment


Optional Services Dealers and CTPs were asked to rate some attributes16 w.r.t optional services provided by CTD on a ve point scale. Independent-Samples T Test was used for analysis. Analysis shows that, for few of the attributes, difference of mean scores of manual and online users was not statistically signicant. In majority of cases, however, they were statistically signicant and those attributes are given below:
Table 17: Attributes on which online service was rated higher than manual service

Dealers 1. 2. 3. 4. 5. 6. 7. Time and effort in ling returns Cost incurred in ling returns Design and layout of forms Time and effort in tax payment Overall quality of service Overall quality of governance Overall experience of availing service from CTD 8. Accuracy of transactions 9. Condentiality and security of data 10. Time and effort in accessing information 11. Predictability of outcome 12. Transparency in CTD 13. Ability to inuence policies, rules and procedures 14. Problem resolution 15. Queuing system at CTD Ofce
1.

CTPs Time and effort in ling returns 2. Cost incurred in ling returns 3. Overall quality of service 4. Overall quality of governance 5. Overall experience of availing service from CTD 6. Accuracy of transactions 7. Condentiality and security of data 8. Time and effort in accessing information 9. Predictability of outcome 10. Transparency in CTD 11. Queuing system at CTD Ofce

Table 18: Attributes on which online service was rated lower than manual service Dealers Time and effort in procuring forms Knowledge of Ofcials CTPs Time and effort in procuring forms Knowledge of Ofcials Problem resolution

_________ 16

There were 28 attributes for dealers and 27 for CTPs

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Impact Assessment of Commercial Taxes Computerization 2010-Gujarat

Mandatory Services Dealers and CTPs were asked to rate some attributes w.r.t mandatory services provided by CTD on a ve point scale. Paired-Samples T Test was used for analysis. Dealers: Out of the twenty three attributes, online mode has been rated higher than manual mode in twenty attributes. Online mode has been rated lower only in three attributes17. CTPs: Out of the twenty two attributes online service has been rated higher than manual in seventeen attributes and lower in only one attribute (knowledge of ofcials). In the case of rest of the attributes, difference was not statistically signicant. Composite Score Interview schedule wise Composite Scores were calculated based on information collected from the section: Overall Assessment. Results are given in the gure below:

Composite Score
0.45 0.4 0.35 0.3 0.25 0.2 0.15 0.1 0.05 0 -0.05 -0.1 -0.037488 0.174687 0.252928 0.379518

Optional Services Usersl

Mandatory Service Users

The graph clearly shows that users of mandatory service (obtaining statutory forms) are far more satised than users of optional online services (mainly ling of returns as most of the responses were for this service).

6.0 Suggestions of Respondents


Major suggestions for improving online services 1. Eliminate practice of submission of hard copy to CTD

__________ 17

Clarity and simplicity of processes and procedures; Knowledge of Ofcials; Dependence on CTPs

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Impact Assessment of Commercial Taxes Computerization 2010-Gujarat

2. 3. 4. 5.

Server speed should be increased CTD ofcials should be given adequate training, so that they can handle queries on online services efciently Involve more banks in E-payment Changes in processes/templates should be immediately communicated to dealers

Major suggestions to increase use of e-service 1. 2. 3. Awareness campaigns on online services for users Establishment of common service centres to facilitate e-services to all Online processes should be made much more user friendly & simple

Other Suggestions 1. 2. Local language interface needed for online services E-payment should be allowed through credit and debit cards

7.0 Opinion of Service Providers


As part of the study we interviewed ofcials of CTD at the Ghatak level. Information gathered from them is summarized below: 1. Benets of e-governance project: Saving time and cost: CTD has beneted from online ling of returns as they do not have to do data entry - it is done by dealers on online template and they can hold dealers responsible for data entry errors. In manual mode, however, data entry is done by CTD and therefore they cannot hold dealers responsible for data entry errors Supervision of work and staff has become easier

2.

Challenges faced as a result of e-governance project: Lack of proper training for employees on online services Some ofces do not have system specialists who can handle glitches Server speed should be increased

8.0 Recommendations for Improving Online Services


Filing Returns 1. Preparation of documents: Online dealers have to enter data on an online template this is a complex and time consuming process. There is a need to make this process simpler and faster.

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One major problem pointed out by users is that while uploading online template (after data entry), if there is an error (usually syntax error), the online application will not accept the template. Consequently the user has to rectify the error and upload the template yet again. This leads to wastage of time many dealers therefore suggest that the template should be designed to detect errors during data entry stage itself, so that time is not wasted while uploading the template Many dealers have suggested that the online template of CTD should be made compatible with popular accounting software (e.g. Tally) so that data could be directly transferred to the online template - thus avoiding data entry. The study reveals that most online dealers (about 90%) maintain book of accounts on their computers and therefore it could be worthwhile to consider this suggestion.

2.

Submitting returns to CTD ofce: Online dealers have to submit hard copy of online returns to CTD ofce thus they have to make at least on trip to the ofce. There is a need to make this service end-to-end and eliminate the need to visit ofce. We understand that this service can be made an end-to-end service trough use of digital signature. However, the use of digital signature among dealers is minimal because: Most dealers lack proper awareness regarding digital signature Many are reluctant to use it because they believe that digital signature is not secure it could be hacked and misused The study has reveled that most dealers depend on CTPs (either fully or partially) for ling returns. This means that the dealer will have to give the CTP access to his/her digital signature. However, many dealers do not trust CTPs with their digital signatures.

Considering the above mentioned points we feel that service should be made end-to-end by circumventing the challenges posed by digital signature. Obtaining Statutory Forms 1. CTD must ensure that the addresses of dealers maintained in their database are accurate the study revealed that, in many cases, there were delays in delivery of statutory forms because they were dispatched to wrong addresses. Ofcials must process applications and dispatch statutory forms ASAP forms should be delivered within 15 days of receipt of application.

2.

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Impact Assessment of Commercial Taxes Computerization 2010-Gujarat

Annexure A

Methodology Gujarat 1.1 Introduction


For administrative convenience, the State has been divided into Divisions, Ranges and Ghataks. Each Division has been divided into Ranges and each Range into Ghataks, which are the basic units of tax administration. There are 7 Divisions, 23 Ranges and 103 Ghataks in Gujarat. Major online services in Gujarat and service wise percentage of users are given below:
Table 1: Percentage of Online and Manual Users Service VAT (%) Manual Online Mandatory Online Services 100% 100% 100% Optional Online Services 88.46% 11.54% NA NA NA NA NA NA CST (%) Manual Online 100% 100% 100%

Application of statutory forms18 Application for Registration/Cancellation19 Application for Refunds20 Filing of returns (1/4/2006 to 5/6/2009)21 (3,34,857 dealers) (43,692 dealers) Payment22 Information Dissemination23

NA NA

NA NA

Source: Commercial Taxes Department, Gujarat

1.2 Research Design As Table 1 shows, there are Mandatory and Optional Online Services in Gujarat. Therefore, two types of Quasi-Experimental Design has been adopted to assess impact of the e-governance Project: I. Nonequivalent Groups Design, with treatment and comparison groups, has been adopted for impact assessment of Optional Online Services (Please refer Annexure A I). Treatment Group has been dened as: Dealers who have availed at least one of the following online services (reference period is last 90 days): 1. e-returns; 2. e-payment; 3. Collecting information online (including application tracking). Treatment group were asked to provide information pertaining to online services only.
__________ 18 Only application can be made online forms are send through courier service. Online application for statutory and other forms started in July 2008 19 Only application can be made online it is not an end-to-end service 20 Only application can be made online it is not an end-to-end service (since October 2008) 21 Percentage calculated from data provided by CTD. e-returns is mandatory for dealers with annual turnover of more than one crore 22 Since this service was introduced, 1430 dealers have availed e-payment - separate gures for VAT and CST are not available. e-payment has been made mandatory for dealers who pay more than Ten Lakh rupees as tax annually (since April 2009) 23 Including application tracking

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Comparison Group has been dened as: Dealers who have not availed any of the optional online services, but availed at least one of the following manual services (reference period is last 90 days): 1. Filing of returns; 2. Payment; 3. Collecting information (including application tracking). Comparison group were asked to provide information pertaining to manual services only. II. Proxy Pretest Design will be adopted for impact assessment of Mandatory Online Services (Please refer Annexure AII). Non-equivalent Groups Design cannot be used for this because of the absence of comparison group. Commercial Taxes Practitioners (CTPs) undertake various tasks, including registration and ling of returns, on behalf of their clients (Dealers). Therefore, it is also important to know how this e-governance project has impacted CTPs. This study will assess impact on CTPs as well as using the designs given above. 1.3 Sample Size I. Nonequivalent Groups Design Treatment Group: Table 1 show that 43,692 dealers have availed the online service: e-returns24. From this gure we arrive at the sample size of treatment group: at 7% Precision Level, Condence Level of 95% and P=.5 sample size required is 204. Apart from this 68 CTPs are also covered. Comparison Group: Table 1 show that 3, 34,857 dealers have used manual mode to le tax returns. From this gure we arrive at the sample size of comparison group: at 7% Precision Level, Condence Level of 95% and P=.5 sample size required is 204. Apart from this 68 CTPs are also covered. II. Proxy Pretest Design There are 3, 78,549 Dealers who le Tax Returns (Please see Table 1) in Gujarat. From this gure we arrive at the sample size: at 7% Precision Level, Condence Level of 95% and P=.5 sample size required is 204. Apart from this 68 CTPs are also covered. 1.4 Selection of Divisions Selection of Divisions was done on the basis of activity levels i.e. total number of dealers who have led Online VAT Returns (e-returns) from 1/4/2006 to 05/06/2009. Divisions were arranged in descending order of the total number of dealers who have led Online VAT Returns. Then they were divided in quartiles and one Division was randomly selected from each quartile.

__________ 24

According to our pilot study, e-return is the most frequently used online service

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Impact Assessment of Commercial Taxes Computerization 2010-Gujarat

Table 2: Selection of Divisions Division Div 7 Div 1 Total Div 4 Div 2 Total Div 5 Div 3 Total Div 6 Total G. Total No. of Dealers25 10405 7530 17935 6816 5984 12800 5894 4280 10174 2783 2783 43692 Percentage26 Selected Division Number of Respondents 320

Quartile 1

41.05%

Div 7: Rajkot

Quartile 2

29.30%

Div 2: Ahmedabad

216

Quartile 3

23.29%

Div 5: Surat

192

Quartile 4

6.37% 100%

Div 6: Bhavnagar

96

Note: 1. Sample size in each selected Division is proportionate to the number of users in the quartile in which it falls 2. According to calculation (Sample size of quartile = proportion of activity level X total sample size) we had arrived at the following sample size (treatment/comparison groups) for each quartile: Quartile 1 (Div 7: Rajkot) = 335; Quartile 2 (Div 2: Ahmedabad) = 239; Quartile 3 (Div 5: Surat) = 190; Quartile 4 (Div 6: Bhavnagar) = 52. However, we felt that the sample size in Quartile 3 and 4 needs to be increased. Therefore, sample size of treatment & control groups in Quartile 1 and 2 have been reduced slightly and that of Quartile 3 and 4 have been increased. 1.5 Selection of Ranges Ideally we would have wanted to arrange Ranges (within each Division) according to their activity level; divide them in quartiles and randomly select one Range from Each quartile. However, it was not possible in this case because none of the Divisions had more than four Ranges. Therefore, we selected all the Ranges of selected Divisions. In all, 13 Ranges covered in 4 Divisions.

__________ 25 26

Dealers who led Online VAT Returns from 1/4/2006 to 05/06/2009. Source: CTD, Gujarat Percentage of users in a particular quartile

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Table 3: Selection of Ranges Selected Division Selected Range Range 22 (Rajkot) Range 23 (Rajkot) Range 24 (Jamnagar) Range 25 (Gandhidham) Range 6 (Ahmedabad) Range 5 (Ahmedabad) Range 4 (Ahmedabad) Range 18 (Valsad) Range 15 (Surat) Range 17 (Surat) Range 16 (Surat) Range 19 (Bhavnagar) Range 21 (Junagadh)

Div 7(Rajkot)

Div 2 (Ahmedabad)

Div 5 (Surat)

Div 6 (Bhavnagar)

1.6 Selection of Ghataks Within each selected Range two Ghataks selected on the basis of their distance from Range. One Ghatak is near the Range and the other is far from the Range Ofcials at Range Level consulted in selecting Ghataks. In all, 26 Ghataks covered in 13 Ranges. 1.7 Selection of Respondents from Ghataks At the Ghatak Level, two locations selected on the basis on their distance from Ghatak one far and the other near. Then we prepared a list of Dealers and CTPs in the selected locations and randomly select some of them from this list. Thereafter, we carried out a listing exercise to categorize Dealers and CTPs as respondents for Optional and Mandatory Services. Note: We understand from our pilot study that most of the Dealers and CTPs are located in urban areas. Therefore most of the respondents are likely to be from urban locations. 1.8 Tools
Design Nonequivalent Groups Design Nonequivalent Groups Design Proxy Pretest Design Proxy Pretest Design Respondent Optional Online Services Dealers (Treatment and Comparison) CTPs (Treatment and Comparison) Mandatory Online Services Dealers CTPs Tool Interview Schedule Interview Schedule Interview Schedule (recall method) Interview Schedule (recall method)

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Impact Assessment of Commercial Taxes Computerization 2010-Gujarat

1.9 Total Sample Size


Table 4: Total Sample Size
Selected Division Selected Range No. of Ghataks Sample Size/ Ghatak Sample Size/ Ghatak for Mandatory Services Sample Size/Ghatak for Optional Services Treatment Comparison

Range 22 (Rajkot) Range 23 (Rajkot) Range 24 (Jamnagar) Range 25 (Gandhidham) Range 6 (Ahmedabad) Div 2 (Ahmedabad) Range 5 (Ahmedabad) Range 4 (Ahmedabad) Range 18 (Valsad) Div 5 (Surat) Range 15 (Surat) Range 17 (Surat) Range 16 (Surat) Range 19 (Bhavnagar) Range 21 (Junagadh) 4 Ranges X 2 = 8 192/8 = 24 6 Dealers 2 CTPs 6 Dealers 2 CTPs 6 Dealers 2 CTPs 3 Ranges X 2 = 6 216/6 = 36 9 Dealers 3 CTPs 9 Dealers 3 CTPs 9 Dealers 3 CTPs 10 Dealers 4 CTPs 10 Dealers 3 CTPs 10 Dealers 3 CTPs

Div 7(Rajkot)

4 Ranges X 2 = 8

320/8 = 40

Div 6 (Bhavnagar)

2 Ranges X 2 = 4

96/4 = 24

6 Dealers 2 CTPs

6 Dealers 2 CTPs

6 Dealers 2 CTPs

4 Divisions

13 Ranges

26 Ghataks

618 Dealers, 206 CTPs and 52 CTD Ofcials27

206 Dealers 74 CTPs

206 Dealers 66CTPs

206 Dealers 66CTPs

__________ 27

We will also interview 2 ofcials/Ghatak to understand how the project has impacted them service providers. Thus 52 Ofcials will be covered.

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Impact Assessment of Commercial Taxes Computerization 2010-Gujarat

Annexure AI

Quasi-Experimental Design: Nonequivalent Groups Design


(Post-test Only)

N N

X O X O

Each group is described on a single line (i.e., treatment group on top, comparison group at the bottom) N indicates that groups are Nonequivalent (i.e., people have not been randomly assigned to groups) X depicts the implementation of a program O stands for the administration of a measure to a group (only post-test in this case) The Non-Equivalent Groups Design (NEGD) is probably the most frequently used design in social research. It is structured like a pretest-posttest randomized experiment, but it lacks the key feature of the randomized designs -- random assignment. In the NEGD, we most often use intact groups that we think are similar as the treatment and control groups. In education, we might pick two comparable classrooms or schools. In community-based research, we might use two similar communities. We try to select groups that are as similar as possible so we can fairly compare the treated one with the comparison one. But we can never be sure the groups are comparable. Or, put another way, its unlikely that the two groups would be as similar as they would if we assigned them through a random lottery. NEGD is susceptible to the internal validity threat of selection. Any prior differences between the groups may affect the outcome of the study. Under the worst circumstances, this can lead us to conclude that our program didnt make a difference when in fact it did, or that it did make a difference when in fact it didnt.

Reference Trochim, William M. The Research Methods Knowledge Base, 2nd Edition. Internet WWW page, at URL: http://www.socialresearchmethods.net/kb/ (version current as of October 20, 2006)

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Annexure AII QUASI-EXPERIMENTAL DESIGN: PROXY PRETEST DESIGN

0-1 X 0-2
O - 1 is administration of a measure (recollection) X depicts the implementation of a program O - 2 is administration of a measure (current) The proxy pretest design looks like a standard pre-post design. But theres an important difference. The pretest in this design is collected after the program is given a proxy variable is used to estimate where the groups would have been on the pretest. In Recollection Proxy Pretest Design you ask the participants to estimate where their pretest level would have been. For instance, you might ask participants to complete your measures estimating how you would have answered the questions six months ago. This type of proxy pretest is not very good for estimating actual pre-post changes because people may forget where they were at some prior time or they may distort the pretest estimates to make themselves look better. However, there may be times when you are interested not so much in where they were on the pretest but rather in where they think they were. The recollection proxy pretest would be a sensible way to assess participants perceived gain or change. The proxy pretest design is not one you should ever select by choice. But, if you nd yourself in a situation where you have to evaluate a program that has already begun, it may be the best you can do and would almost certainly be better than relying only on a posttest-only design.

Reference Trochim, William M. The Research Methods Knowledge Base, 2nd Edition. Internet WWW page, at URL: http://www.socialresearchmethods.net/kb/ (version current as of October 20, 2006)

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Annexure B

Gujarat- Listing Schedule for Dealers

Address of Dealer28 Division Range Ghatak

Name

Code

< 50 lakhs.1 Turnover in FY 2008-09 50 lakhs 1 crore2 > 1 crore.3 Optional Services availed in last 90 days29 Service Filing Returns Payment Seeking Information Used/Not Yes-1; No-2 Yes-1; No-2 Yes-1; No-2 Manual -1; Manual -1; Manual -1; Mode Online - 2 Online - 2 Online - 2 Outsourcing30 In-house - 1, Partial - 2, CTP - 3 In-house - 1, Partial - 2, CTP - 3 In-house - 1, Partial - 2, CTP - 3

Mandatory Services Availed Service Application for Statutory Forms Application for Registration Application for Cancellation Application for Refunds
32

Used/Not Yes-1; No-2 Yes-1; No-2 Yes-1; No-2 Yes-1; No-2

Mode Manual -1; Online 2; Both 3 Manual -1; Online 2; Both 3 Manual -1; Online 2; Both 3 Manual -1; Online 2; Both 3

Outsourcing31 In-house - 1, Partial - 2, CTP - 3 In-house - 1, Partial - 2, CTP - 3 In-house - 1, Partial - 2, CTP - 3 In-house - 1, Partial - 2, CTP - 3

Address of CTP (only if CTPs service has been availed by the Dealer)

Name and Code of Investigator: Date:

__________ 28 29

With phone numbers and nearest landmark Circle responses 30 Completely in-house 1; Partially in-house 2; Completely outsourced to CTP 3 31 Should be considered completely in-house only if both manual and online services are done in-house 32 With phone numbers and nearest landmark

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Impact Assessment of Commercial Taxes Computerization 2010-Gujarat

Gujarat- Listing Schedule for CTPs


Address of CTP33 Division Range Ghatak Turnover in FY 2008-09 (INR) Optional Services availed in last 90 days34 Service Filing Returns Payment Seeking Information Yes-1 Yes-1 Yes-1 Used/Not No-2 No-2 No-2 Mandatory Services Availed Application for Statutory Forms Application for Registration Application for Cancellation Application for Refunds Yes-1 Yes-1 Yes-1 Yes-1 No-2 No-2 No-2 No-2 Manual -1 Manual -1 Manual -1 Manual -1 Online 2 Both 3 Online 2 Both 3 Online 2 Both 3 Online 2 Both 3 Manual -1 Manual -1 Manual -1 Mode Online - 2 Online - 2 Online - 2 Name Code

Name and Code of Investigator: Date:

__________ 33 34

With phone numbers and nearest landmark Circle responses

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Annexure C

Gujarat: Interview Schedule For Dealers


(Optional Online Services)
Sl. No. State State Code District A. IDENTIFICATION DETAILS District Date of Interview (DD/ Code MM) Phone Land : Mobile: TIN Interviewer Name Editor Name Supervisor Name Comparison (manual)2 Code Signature Code Signature Code Signature B. 1B. Please specify the Constitution of your enterprise DEALER PROFILE Proprietor.1 Partnership..2 Private Limited Company..3 Public Limited Company4 Hindu Undivided Family 5 Co-operative Society..6 Government Undertaking..7 Others (Specify) Manufacture.1 Wholesale.2 Retail.3 Export...4 Hire Purchase..5 Works Contract....6 Leasing.7 Hotels8 Food & Drink.9 Others (Specify) Distance from Ghatak Ofce (Km.) Ghatak Ghatak code Group35 Treatment (online)..1 Range Range code Urban.2 Division Division Code Town/Village Code Respondents Name & Designation

Address of Dealer with landmark

Location of Ofce Rural..1

2B.

Please specify the type of business21

3B.

What was the annual turnover in Financial Year: 2008-09 (INR) Please give details of Commercial Taxes paid in Financial Year: 2008-09 (INR) VAT CST Tax Registered Yes-1 Yes-1 No-2 No-2 Amount Paid (INR)

4B.

__________
35 36

Entry Tax Others (Specify)

As per the listing exercise As per Commercial Tax Department records

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Impact Assessment of Commercial Taxes Computerization 2010-Gujarat

5B.

Please specify the mode in which Books of Accounts Manual .....1 are maintained within the organization Computerized...2 Not maintained at all.3 Number of staff in your organization who are involved in activities related to Commercial Taxes C. AWARENESS AND USAGE OF ONLINE SERVICES Are you aware of online services provided by Commercial Taxes Department? Please specify the rst source of awareness about online services provided by Commercial Taxes Department Yes - 1 No - 2

6B.

1C.

Part D

2C.

Newspaper...1 Television.2 Other Dealers..3 CTPs....4 Commercial Tax Dep. Ofcial..5 Others (Specify)

3C.

Which are the online services provided by Commercial Taxes Department? (Multiple Responses)

Application for Registration....1 Application for issue of forms2 Application for refund...3 Filing Returns4 Payment of Taxes5 Information Dissemination..6 Others (Specify)

4C. 5C.

Have you used any of the online services provided by Com- Yes 1 mercial Taxes Department? No 2 Please give details regarding online services used and frequency of use Frequency of Use Fortnightly.1 Monthly. 2 Quarterly3 Annually..6 Others (Specify)

7C Used/Not Yes-1 Yes-1 Yes-1 Yes-1 Yes-1 Yes-1 No-2 No-2 No-2 No-2 No-2 No-2 Frequency

Online Service Registration (application) Filing Returns Payment of Taxes Application for Forms Seeking information Others (Specify)

6C.

What are the reasons for using online service (s) (Multiple Responses)

PLEASE PROCEED TO PART D AFTER ANSWERING THIS QUESTION

Online process is faster ....1 Online process is more secure..2 Fewer errors in online process..3 Fewer visits to Commercial Taxes Department.4 Online process is more transparent.5 It is mandatory.6 Others (Specify) Do not have skills to use online services....1 Do not have access to hardware/software.....2 Do not have access to internet....3 Unreliable power situation....4 Online process is prone to errors....5 Online process is not secure.......6 Online process is slow..7 Have to submit hard copy to Ofce.8 Others (Specify)

7C.

What are the reasons for not using online service (Multiple responses)

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Impact Assessment of Commercial Taxes Computerization 2010-Gujarat

D. TIME AND EFFORT AND COSTS OF AVAILING SERVICES Please provide the following details with reference to maximum of two services that you have availed from Commercial Tax Department in last 90 days 1D. Services Availed in Last 90 Days: (Only Online services for Treatment Group and only Manual Services for Comparison Group) Filing Returns1 Payment.2 Seeking information (including application tracking)3 15D Mode of service: Online 1; Manual 2 Was the online service availed mandatory/optional? Mandatory 1; Optional 2 [NOT APPLICABLE FOR MANUAL USERS] Were processes related to the service outsourced? No, it was done completely in-house 1 6D Yes, it was partially done by CTP 2 What are the reasons for depending on CTP (Multiple responses) Due to lack of sufcient knowledge on processes.1 To ensure accuracy of data given to Department..2 Want to avoid interface with Dep. Ofcials.3 Do not want to spent time on this.4 Others (Specify) D-1: Time and Effort and Cost of Preparation of Documents for Filing Returns 6D. How many man-hours were spent in completing various forms and preparing supporting documents for manual ling of returns? PLEASE NOTE THAT THIS COULD BE APPLICABLE FOR ONLINE USERS AS WELL - MANY OF THEM ARE REQUIRED TO FILE HARD COPIES, EVEN AFTER FILING RETURNS ONLINE 7D. 8D. 9D. How many man-hours were spent for data entry in online template? (NOT APPLICABLE FOR MANUAL USERS) Total man-hours spent for preparation of documents for ling returns (6D + 7D) Please calculate the amount spent as salary/wages for preparation of documents for ling returns (Total man-hours spent X wage per man-hour) {INR} A B

2D. 3D.

4D.

5D.

10D. Cost of stationery37 and photo copies w.r.t ling returns {INR} 11D. Cost of access to Internet38 (INR) (NOT APPLICABLE FOR MANUAL USERS) 12D. Cost of Statutory Forms and other Forms including courier charges (INR) 13D. Service charge paid to Tax Consultant for preparation of documents (INR) (NOT APPLICABLE IF DONE IN-HOUSE: PLEASE SEE 4D) 14D. Total cost of preparation of documents for ling returns (INR) D- 2: Time and Effort and Cost of Availing Services From Commercial Taxes Department 15D. How many trips did you need to make for the service including trips for error correction?
__________ 37 38

Ledgers, CDs, printing paper, printing ink, carbon paper etc. Internet charges based on hours of internet used for this particular service

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Impact Assessment of Commercial Taxes Computerization 2010-Gujarat

16D. Purpose of each trip and time spent waiting (Including time spent in queue and transaction time at counter ) for availing service - (min) To submit documents...1 To collect certicate..2 To correct error in certicate/document issued by CTD.3 To correct errors in documents submitted by Dealer/Tax Consultant..4 To track application5 To seek information6 To bank/treasury for making payment - Challan (applicable only for payment).7 To fulll requirement of physical presence.8 Others (Specify)

Trip I II III IV V

Purpose Time Purpose Time

17D. Please see 15D if the number of trips is more than one, then ask: Why did you have to make more that one trip? It was required as per CTD procedure...1 To follow up, as there was delay on the part of CTD to provide service.2 Could not avail service in previous visit (s) as there was a long queue.3 Concerned functionary was not available..4. Counter was not operational5 Documents/application submitted by me were incomplete6 Others (Specify) 18D. Do you think you had to wait excessively for availing service in any of the trips? Yes 1 No 2 20D 19D. Please specify the reasons for excessive wait Long queue.1 Ofcials of CTD are inefcient (slow in processing).2 Processes are too complex & takes lot of time to complete...3 Too many applicants at ofce.4 Badly managed queue5 Some windows/counters were not operational6 Power breakdown.7 Computer/network connectivity failure.8 Others (Specify) 20D. Please specify the travel cost incurred in making a round trip to CTD Ofce (INR) 21D. Please specify the travel cost incurred in making a round trip to Bank/Treasury (INR) (APPLICABLE ONLY FOR PAYMENT) 22D. Total travel cost incurred in availing service (number of trips X travel cost per trip) INR 23D. Please specify the travel time spent in making a round trip to CTD Ofce (Min.) 24D. Please specify the travel time spent in making a round trip to Bank/Treasury (Min.) (APPLICABLE ONLY FOR PAYMENT) 25D. Total travel time spent in availing service (number of trips X travel time per trip) Min. 26D. How many times did you log-in to avail online service? [NOT APPLICABLE FOR MANUAL USERS]

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27D. Please see the previous question if the number is more than one, then ask: Why did you have to log-in more than once? [NOT APPLICABLE FOR MANUAL USERS] Service was not available as server was slow.1 Portal was undergoing maintenance..2 Templates had changed, therefore it had to be downloaded rst3 Others (Specify) 28D. What was the total time taken to complete transaction Online - it does not include time taken for data entry? (Min) [NOT APPLICABLE FOR MANUAL USERS] 29D. Do you think that the time taken to complete online transaction was excessive? Yes 1; No 2 31D [NOT APPLICABLE FOR MANUAL USERS] 30D. Why do you think are the reasons for excessive time in online transactions? Server is slow.1 Processes are complex and time consuming2 Errors occur while uploading template3 Others (Specify) 31D. Please calculate the amount spent as salary/wages on total time spent in availing service: traveling time + waiting time + time for online transaction (man-hours spent X wage per man-hour) {INR} THIS DOES NOT INCLUDE TIME TAKEN FOR FILLING FORMS, PREPARATION OF SUPPORTING DOCUMENTS AND DATA ENTRY 32D. Service Charge paid to department for which you got a receipt? (INR) 33D. Service charge paid to Tax Consultant for facilitating service from CTD Ofce (INR) (NOT APPLICABLE IF DONE IN-HOUSE: PLEASE SEE 4D)
39 34D. What was the total payment made by you for availing the service? (INR) Manual Manual 35D. What was the total elapsed time in availing service - how long did it take for the task to Process Process be completed, right from the date of applying to actually receiving the service applied for? (this does not include time taken for lling forms, preparation of supporting docuOnline Process Online Process ments and data entry)? (Hours)

IN CASE OF ONLINE USERS, TOTAL ELAPSED TIME IS THE TIME TAKEN TO COMPLETE THE TRANSACTION ONLINE PLUS TIME SPENT TO SUBMIT HARD COPIES TO CTD 36D. Did you pay a bribe directly to Ofcials? Yes-1; No-2 Part E 37D. For what purpose did you pay the bribe indicated in the previous question? (Multiple responses) To avoid audit assessment by CT Department.1 To inuence functionaries to manipulate records in your favor..2 To expedite the process...3 Others (Specify)

Total

Total

E. OVERALL ASSESSMENT On a 5 point scale (Dissatised-1; Somewhat dissatised-2; Neutral-3; Somewhat satised-4; Very satised-5) please rate the following attributes (Online services for Treatment Group and Manual services for Comparison Group) 1E. 3E. FILING OF RETURNS Time and effort in ling returns 2E. Cost incurred in ling returns Design and layout of forms (templates in case of online services)

39

__________ Includes a) service charge paid to intermediary/agency, b) amount paid to department for which receipt was given, and c) amount paid as bribe to department staff/functionaries

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Impact Assessment of Commercial Taxes Computerization 2010-Gujarat

4E.

Time and effort in tax payment

PAYMENT OF TAX 5E. Security of monetary transactions COMMON ATTRIBUTES (Applicable For All Services) 7E. 9E. 11E. 13E. 15E. 17E. 19E. 21E. 23E. 25E. Overall quality of governance41 Accuracy of transactions Time and effort in procuring forms Predictability of outcome Accountability of Ofcials Knowledge of Ofcials Level of corruption43 Problem resolution44 Convenience of working hours45 Convenience of location of ofce (accessibility and ambience) Dependence on CTPs47

6E. 8E. 10E. 12E. 14E. 16E. 18E. 20E. 22E. 24E. 26E. 28E. 29E.

Overall quality of service40 Overall experience of availing service from CTD Condentiality and security of data Time and effort in accessing information Clarity and simplicity of processes and procedures Transparency42 in CTD Ability to inuence policies, rules and procedures through feedback Courtesy and helpfulness of Ofcials Complaint handling mechanism (including service provided by Call centre/Helpline) Queuing system at CTD Ofce

Adherence to Citizen Charter46 27E. Durability and legibility of certicates/receipts Among the above given factors please list the three factors that you consider the most important RECORD THE S.NO. OF THE FACTOR F. SUGGESTIONS48

1F.

Please give your suggestions in improving online services: (Multiple Responses) Eliminate practice of submission of hard copy to CTD.....a Server speed should be increasedb Tax Consultants should be allowed to make E-payment on behalf of their clients through Consultants Internet Banking A/C .....c Maintenance of website should not be done during Ofce Hours of Traders/Tax Consultants.d CTD ofcials should be given adequate training, so that they can handle queries on online services efciently...e Involve more Banks in E-payment.f Provide templates(w.r.t. returns) that can perform data verication ofineg Changes in processes/templates should be immediately communicated to dealers....h Others (Specify)

__________ 40 Quality of service is understood as fairness, speed of processing, accuracy of transactions, legibility and durability of certicates and printouts, convenience of obtaining service 41 Governance is understood as transparency, accountability and corruption-free working 42 Understanding and awareness of the basis on which decisions affecting you/other users are taken by ofcials 43 Very corrupt-1; Somewhat corrupt-2; Neutral-3; Somewhat less corrupt-4; Not at all corrupt-5 44 Mechanism to rectify inadvertent errors in forms/documents submitted by Dealers to CTD e.g. computational errors/wrong gures 45 Hours of service in case of online services 46 Adherence of the time frame for service delivery (elapsed time) to that specied in citizens charter 47 Very much dependant -1; Somewhat dependant -2; Neutral-3; Somewhat less dependant-4; Not at all dependant-5 48 This part is for all users - manual and online

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Impact Assessment of Commercial Taxes Computerization 2010-Gujarat

2F.

Please give your suggestions to increase use of online services: (Multiple Responses) Awareness campaigns on online services for dealers..a Establishment of Common Service Centres to facilitate E-services to all dealers.....b Online processes should be made much more user friendly and simple.....c Others (Specify)

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Annexure D

Gujarat: Interview Schedule for Dealers


(Mandatory Online Services)
Sl. No. State State Code G. IDENTIFICATION DETAILS District District Date of Interview (DD/MM) Code Phone Land : Mobile: Town/Village Distance from Ghatak Ofce (Km.)

Address of Dealer with landmark

Location of Ofce Code Rural..1

TIN

Respondents Name & Designation

Urban.2 Division Division Code Range Ghatak Range code Ghatak code

Interviewer Name Code Signature

Editor Name Code Signature

Supervisor Name Code Signature

H. DEALER PROFILE 1B. Please specify the Constitution of your enterprise Proprietor.1 Partnership..2 Private Limited Company..3 Public Limited Company4 Hindu Undivided Family 5 Co-operative Society..6 Government Undertaking..7 2B. Please specify the type of business1 Others (Specify) Manufacture.1 Wholesale.2 Retail.3 Export...4 Hire Purchase..5 Works Contract....6 Leasing.7 Hotels8 Food & Drink.9 Others (Specify) 3B. What was the annual turnover in Financial Year: 2008-09 (INR) 4B. Please give details of Commercial Taxes paid in Financial Year: 2008-09 (INR) Tax VAT CST Entry Tax Others (Specify) Yes-1 Yes-1 Registered No-2 No-2 Amount Paid (INR)

__________ 49

As per Commercial Tax Department records

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Impact Assessment of Commercial Taxes Computerization 2010-Gujarat

5B. Please specify the mode in which Books of Accounts are Manual .....1 maintained within the organization Computerized...2 Not maintained at all.3 6B. Number of staff in your organization who are involved in activities related to Commercial Taxes I. AWARENESS AND USAGE OF ONLINE SERVICES 1C. Please specify the rst source of awareness about online services Newspaper...1 provided by Commercial Taxes Department Television.2 Other Dealers...3 CTPs.....4 Commercial Tax Dep. Ofcial.....5 Others (Specify) Application for Registration....1 2C. Which are the online services provided by Commercial Taxes Application for issue of forms2 Department? Application for refund...3 (Multiple Responses) Filing Returns4 Payment of Taxes...5 Information Dissemination....6 Others (Specify) Online Service Used/Not Frequency 3C. Please give details regarding online services used and frequency Registration (application) Yes-1 No-2 of use Filing Returns Yes-1 No-2 Frequency of Use Payment of Taxes Yes-1 No-2 Fortnightly.1 Application for Statutory Yes-1 No-2 Monthly. 2 Forms Quarterly3 Seeking information Yes-1 No-2 Annually....6 Others (Specify) Yes-1 No-2 Others (Specify)

4C. What are the reasons for using online service (s) (Multiple Responses)

Online process is faster ....1 Online process is more secure..2 Fewer errors in online process..3 Fewer visits to Commercial Taxes Department....4 Online process is more transparent...5 It is mandatory..6 Others (Specify)

J. TIME AND EFFORT AND COSTS OF AVAILING SERVICES Online Manual Please provide the following details with reference to maximum of two services that you have availed through online and manual modes: 1D. Services Availed: Application for issue of statutory forms....1 Application for registration.2 Application for cancellation....3 Application for refunds4 2D. Date of availing service specify month and year 3D. Were processes related to the service outsourced? No, it was done completely in-house 1 5D Yes, it was partially done by CTP 2 4D. What are the reasons for depending on CTP (Multiple responses) Due to lack of sufcient knowledge on processes.1 To ensure accuracy of data given to Department..2 Want to avoid interface with Dep. Ofcials.3 Do not want to spent time on this.4 Others (Specify)

Online

Manual

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Impact Assessment of Commercial Taxes Computerization 2010-Gujarat

D-1: Time and Effort and Cost of Preparation of Documents (This section is not applicable for the service: Application for issue of Statutory Forms) 5D. 6D. How many man-hours were spent in completing various forms and preparing supporting documents?

Please calculate the amount spent as salary/wages for preparation of documents (Total man-hours spent X wage per man-hour) {INR} 7D. Cost of stationery50, photocopies and/or internet charges w.r.t service availed {INR} 8D. Cost of Statutory Forms and other Forms including courier charges (INR) (NOT APPLICABLE FOR THE SERVICE: APPLICATION FOR ISSUE OF FORMS) 9D. Service charge paid to Tax Consultant (INR) (NOT APPLICABLE IF DONE IN-HOUSE: PLEASE SEE 3D) 10D. Total cost of preparation of documents (INR) D-2: Time and Effort and Cost of Availing Services From Commercial Taxes Department 11D. How many trips did you need to make to Commercial Tax Ofce for the service including trips for error correction? Trip Purpose Time Purpose Time Purpose Time Purpose 12D. Purpose of each trip and time spent I waiting at CTD Ofce (Including time spent in queue & transaction time at counter) for availing service - (min) To submit documents..1 To collect certicate...2 To correct error in certicate/document issued by CTD............3 To correct errors in documents submitted by Dealer/Tax Consultant.....4 To track application5 To seek information6 To bank/treasury for making payment Challan (applicable only for payment).7 To fulll requirement of physical presence...............8 Others (Specify) II III IV V

Time

13D. Please see 11D if the number of trips is more than one, then ask: Why did you have to make more that one trip? It was required as per CTD procedure..1 To follow up, as there was delay on the part of CTD to provide service.................................................................2 Could not avail service in previous visit (s) as there was a long queue........................................................................3 Concerned functionary was not available4. Counter was not operational..5 Documents/application submitted by me were incomplete6 Others (Specify) 14D. Do you think you had to wait excessively for availing service in any of the trips? Yes 1 No 2 16D
__________ 50

Ledgers, CDs, printing paper, printing ink, carbon paper etc.

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15D. Please specify the reasons for excessive wait


Long queue.1 Ofcials of CTD are inefcient (slow in processing).2 Processes are too complex & takes lot of time to complete3 Too many applicants at ofce.4 Badly managed queue5 Some windows/counters were not operational6 Power breakdown.7 Computer/network connectivity failure.8 Others (Specify) Please specify the travel cost incurred in making a round trip to CTD Ofce (INR) Total travel cost incurred in availing service (number of trips X travel cost per trip) INR Please specify the travel time spent in making a round trip to CTD Ofce (Min.) Total travel time spent in availing service (number of trips X travel time per trip) Min. How many times did you log-in to avail online service? Please see the previous question if the number is more than one, then ask: Why did you have to log-in more than once? Service was not available as server was slow.1 Portal was undergoing maintenance..2 Templates had changed, therefore it had to be downloaded rst3 Others (Specify) What was the total time taken to complete transaction Online - it does not include time taken for data entry? (Min) Do you think that the time taken to complete online transaction was excessive? Yes 1; No 2 25 D Why do you think are the reasons for excessive time in online transactions? Server is slow..............1 Processes are complex and time consuming...2 Errors occur while uploading template3 Others (Specify) Please calculate the amount spent as salary/wages on total time spent in availing service: traveling time + waiting time + time for transaction (man-hours spent X wage per man-hour) {INR} THIS DOES NOT INCLUDE TIME TAKEN FOR FILLING FORMS, PREPARATION OF SUPPORTING DOCUMENTS AND DATA ENTRY Service Charge paid to department for which you got a receipt? (INR) Service charge paid to Tax Consultant for facilitating service from CTD Ofce (INR) (NOT APPLICABLE IF DONE IN-HOUSE: PLEASE SEE 3D) What was the total payment51 made by you for availing the service? (INR) What was the total elapsed time in availing service - how long did it take for the task to be completed, right from the date of applying to actually receiving the service applied for? (this does not include time taken for lling forms, preparation of supporting documents and data entry)? (Hours)

16D. 17D. 18D. 19D. 20D. 21D.

22D. 23D.

24D.

25D.

26D. 27D.

28D. 29D.

___________ 51

Includes a) service charge paid to intermediary/agency, b) amount paid to department for which receipt was given, and c) amount paid as bribe to department staff/functionaries

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Impact Assessment of Commercial Taxes Computerization 2010-Gujarat

30D. Did you pay a bribe directly to Ofcials?


Yes-1; No-2 Part E

31D. For what purpose did you pay the bribe? (Multiple rspponses)
To avoid audit assessment by CT Department.1 To inuence functionaries to manipulate records in your favor2 To expedite the process........................................3 Others (Specify) K. OVERALL ASSESSMENT On a 5 point scale (Dissatised-1; Somewhat dissatised-2; Neutral-3; Somewhat satised-4; Very satised-5) please rate the following attributes: O M O M 1E. Cost of availing service 2E. Time and effort in availing service 3E. Overall experience of availing service from 4E. Condentiality and security of data CTD 5E. Effort in preparation of documents 6E. Overall quality of governance 7E. Overall quality of service52 8E. Accuracy of transactions 9E. Clarity and simplicity of processes and proce10E. Accountability of Ofcials dures 12E. Knowledge of Ofcials 11E. Transparency53 in CTD 13E. Predictability of outcome 14E. Complaint handling mechanism54& problem resolution 15E. Ability to inuence policies, rules and proce16E. Convenience of location of center/ofce (accessibility dures through feedback and ambience) 17E. Courtesy and helpfulness of Ofcials 18E. Convenience of working hours 19E. Queuing system at CTD Ofce 20E. Level of corruption 21E. Adherence to Citizen Charter55 22E. Dependence on CTPs 23E. Durability and legibility of certicates/receipts 24E. Among the above given factors please list the three factors that you consider the most important RECORD THE S.NO. OF THE FACTOR

L. SUGGESTIONS8
1F. Please give your suggestions in improving online services: (Multiple Responses) Eliminate practice of submission of hard copy to CTD............1 Server speed should be increased.......2 Tax Consultants should be allowed to make E-payment on behalf of their clients through Consultants Internet Banking A/C ............................................................................................................................................3 Maintenance of website should not be done during Ofce Hours of Traders/Tax Consultants................4 CTD ofcials should be given adequate training, so that they can handle queries on online services efciently..5 Involve more Banks in E-payment..................................................................6 Provide templates(w.r.t. returns) that can perform data verication ofine............7 Changes in processes/templates should be immediately communicated to dealers................8 Mistakes in database maintained by CTD w.r.t addresses of dealers should be rectied...........9 Others (Specify)

__________ 52 Quality of service is understood as fairness, speed of processing, accuracy of transactions, legibility and durability of certicates and printouts, convenience of obtaining service 53 Understanding and awareness of the basis on which decisions affecting you/other users are taken by ofcials 54 Including service provided by Call centre/Helpline 55 Adherence of the time frame for service delivery (elapsed time) to that specied in citizens charter 56 This part is for all users - manual and online

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Impact Assessment of Commercial Taxes Computerization 2010-Gujarat

2F.

Please give your suggestions to increase use of online services: (Multiple Responses) Awareness campaigns on online services for dealers..1 Establishment of Common Service Centres to facilitate E-services to all dealers....2 Online processes should be made much more user friendly and simple.......3

Others (Specify)

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Impact Assessment of Commercial Taxes Computerization 2010-Gujarat

Annexure E Gujarat: Interview Schedule for CTP (Optional Online Services)


M. IDENTIFICATION DETAILS Sl. No.
State State Code District District Code Date of Interview (DD/MM) Respondents Name

Address with landmark Town/ Village


Phone Group57

Location of Ofce Code Rural..1 Urban.2


Division Division Code

Land Line : Interviewer


Name

Editor
Name

Mobile: Supervisor
Name

Treatment (online)..1 Range Comparison (manual)2 Distance from Ghatak Ofce (Km.) Ghatak Range code Ghatak code

Code
Signature

Code Signature

Code Signature

1B.

2B. 3B. 4B.

N. Prole of Tax Consultant Educational qualication of Tax Consultant FICA. - 1 LLB - 2 Others (Specify) Years of Experience as Tax Consultant What was the annual turnover in Financial Year: 2008-09 (INR) Major services provided to clients (only those for which service charge is taken), service charge (average) SERVICE Registration 1; Filing Returns 2; Others Specify. TAX VAT -1; CST 2; Others (Specify) Number of staff in your organization who are involved in activities related to Commercial Taxes Is the Tax Consultant computer literate? Yes 1 Part C Tax Service Service Charge (INR) Manual Online

5B. 6B.

7B.

No - 2 Has the Tax Consultant used any online E-Gov. ser- Yes 1 No - 2 vice

__________ 57

As per the listing exercise

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Impact Assessment of Commercial Taxes Computerization 2010-Gujarat

O. AWARENESS AND USAGE OF ONLINE SERVICES 1C. 2C. Are you aware of online services provided by Commercial Taxes Department? Please specify the rst source of awareness about online services provided by Commercial Taxes Department Yes - 1 Part D No - 2 Newspaper...1 Television.2 Dealers.....3 Other CTPs.....4 Commercial Tax Dep. Ofcial...5 3C. Which are the online services provided by Commercial Taxes Department? (Multiple Responses) Others (Specify) Application for Registration....1 Application for issue of forms2 Application for refund...3 Filing Returns4 Payment of Taxes5 Information Dissemination..6 4C. 5C. Have you used any of the online services provided by Commercial Taxes Department? Please give details regarding online services used and frequency of use Frequency of Use Daily..1 Weekly..2 Fortnightly.3 Monthly. 4 Quarterly5 Annually..6 Others (Specify) Others (Specify) Yes 1 7C No 2 Online Service Registration (application) Filing Returns Payment of Taxes Application for Forms Seeking information Others (Specify) Used/Not Yes-1 No-2 Yes-1 No-2 Yes-1 No-2 Yes-1 No-2 Yes-1 No-2 Yes-1 No-2 Frequency

6C.

What are the reasons for using online service (s) (Multiple Responses)

Online process is faster ....1 Online process is more secure..2 Fewer errors in online process..3 Fewer visits to Commercial Taxes Department.4

PLEASE PROCEED TO PART D AFTER ANSWERING THIS QUESTION 7C. What are the reasons for not using online service (Multiple responses)

Online process is more transparent.5 It is mandatory.6 Others (Specify) Do not have skills to use online services....1 Do not have access to hardware/software.....2 Do not have access to internet....3 Unreliable power situation....4 Online process is prone to errors....5 Online process is not secure.......6 Online process is slow..7 Have to submit hard copy to Ofce.8 Others (Specify)

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Impact Assessment of Commercial Taxes Computerization 2010-Gujarat

P. TIME AND EFFORT AND COSTS OF AVAILING SERVICES Please provide the following details with reference to maximum of two services that you have availed from Commercial Tax Department in last 90 days Services Availed in Last 90 Days: (Only Online services for Treatment Group and only 38D. Manual Services for Comparison Group) Filing Returns1 Payment.2 Seeking information (including application tracking)3 Mode of service: Online 1; Manual 2 Was the online service availed mandatory/optional w.r.t client? Mandatory 1; Optional 2 [NOT APPLICABLE FOR MANUAL USERS] D-1: Time and Effort and Cost of Preparation of Documents for Filing Returns/Payment How many man-hours were spent in completing various forms and preparing supporting documents for manual ling of returns/payment? PLEASE NOTE THAT THIS COULD BE APPLICABLE FOR ONLINE USERS AS WELL - MANY OF THEM ARE REQUIRED TO FILE HARD COPIES, EVEN 42D. AFTER FILING RETURNS ONLINE How many man-hours were spent for data entry in online template? (NOT APPLICABLE FOR MANUAL USERS) Total man-hours spent for preparation of documents for ling returns/payment (6D + 7D) Please calculate the amount spent as salary/wages for preparation of documents for ling returns/payment (Total man-hours spent X wage per man-hour) {INR} Cost of stationery58 and photo copies w.r.t ling returns/payment {INR} Cost of access to Internet59 (INR) (NOT APPLICABLE FOR MANUAL USERS) Cost of Statutory Forms and other Forms including courier charges (INR) Total cost of preparation of documents for ling returns/payment (INR) D- 2: Time and Effort and Cost of Availing Services From Commercial Taxes Department How many trips did you need to make for the service including trips for error correction? Purpose of each trip and time spent waiting (Including time spent in queue and transaction time at counter ) for availing service - (min) I To submit documents............................1 To collect certicate......................2 To correct error in certicate/document issued by CTD................3 To correct errors in documents submitted by Dealer/Tax Consultant....4 To track application.........5 To seek information.....................................6 To bank/treasury for making payment - Challan (applicable only for payment).7 To fulll requirement of physical presence..............................8 Others (Specify)
________ 58 Ledgers, CDs, printing paper, printing ink, carbon paper etc. 59 Internet charges based on hours of internet used for this particular service

12D

39D. 40D.

41D.

43D. 44D. 45D. 46D.

47D. 48D. 49D. 50D.

Trip

Pur- Time pose

Purpose Time

II III IV V

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Impact Assessment of Commercial Taxes Computerization 2010-Gujarat

51D.

Please see 12D if the number of trips is more than one, then ask: Why did you have to make more that one trip? It was required as per CTD procedure..........1 To follow up, as there was delay on the part of CTD to provide service.2 Could not avail service in previous visit (s) as there was a long queue..3 Concerned functionary was not available.........4 Counter was not operational............5 Documents/application submitted by me were incomplete.........6 Others (Specify)

52D.

Do you think you had to wait excessively for availing service in any of the trips? Yes 1

53D.

No 2 17D Please specify the reasons for excessive wait Long queue................1 Ofcials of CTD are inefcient (slow in processing)........2 Processes are too complex & takes lot of time to complete...3 Too many applicants at ofce.4 Badly managed queue5 Some windows/counters were not operational..6 Power breakdown..7 Computer/network connectivity failure.8 Others (Specify)

54D. 55D. 56D. 57D. 58D. 59D. 60D.

Please specify the travel cost incurred in making a round trip to CTD Ofce (INR) Please specify the travel cost incurred in making a round trip to Bank/Treasury (INR) (APPLICABLE ONLY FOR PAYMENT) Total travel cost incurred in availing service (number of trips X travel cost per trip) INR Please specify the travel time spent in making a round trip to CTD Ofce (Min.) Please specify the travel time spent in making a round trip to Bank/Treasury (Min.) (APPLICABLE ONLY FOR PAYMENT) Total travel time spent in availing service (number of trips X travel time per trip) Min. How many times did you log-in to avail online service? [NOT APPLICABLE FOR MANUAL USERS] Please see the previous question if the number is more than one, then ask: Why did you have to log-in more than once? [NOT APPLICABLE FOR MANUAL USERS] Service was not available as server was slow..1 Portal was undergoing maintenance..2 Templates had changed, therefore it had to be downloaded rst.3 Others (Specify)

61D.

62D. 63D. 64D.

What was the total time taken to complete transaction Online - it does not include time taken for data entry? (Min) [NOT APPLICABLE FOR MANUAL USERS] Do you think that the time taken to complete online transaction was excessive? Yes 1; No 2 28D [NOT APPLICABLE FOR MANUAL USERS] Why do you think are the reasons for excessive time in online transactions? Server is slow.1 Processes are complex and time consuming.....2 Errors occur while uploading template.3 Others (Specify)

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Impact Assessment of Commercial Taxes Computerization 2010-Gujarat

65D

Please calculate the amount spent as salary/wages on total time spent in availing service: traveling time + waiting time + time for online transaction (man-hours spent X wage per man-hour) {INR} THIS DOES NOT INCLUDE TIME TAKEN FOR FILLING FORMS, PREPARATION OF SUPPORTING DOCUMENTS AND DATA ENTRY Service Charge paid to CTD for which you got a receipt (INR) What was the total payment60 made by you for availing the service? (INR) What was the total elapsed time in availing service - how long did it take for the task to be completed, right from the date of applying to actually receiving the service applied for? (this does not include time taken for lling forms, preparation of supporting documents and data entry)? (Hours)

66D. 67D. 68D.

Manual Process Online Process Total

Manual Process Online Process

Total

IN CASE OF ONLINE USERS, TOTAL ELAPSED TIME IS THE TIME TAKEN TO COMPLETE THE TRANSACTION ONLINE PLUS TIME SPENT TO SUBMIT HARD COPIES TO CTD 69D. 70D. Did you pay a bribe directly to Ofcials? Yes-1; No-2 Part E For what purpose did you pay the bribe indicated in the previous question? (Multiple responses) To avoid audit assessment by CT Department.1 To inuence functionaries to manipulate records in your favor..2 To expedite the process...3 Others (Specify) Q. OVERALL ASSESSMENT On a 5 point scale (Dissatised-1; Somewhat dissatised-2; Neutral-3; Somewhat satised-4; Very satised-5) please rate the following attributes (Online services for Treatment Group and Manual services for Comparison Group) 1E. 3E. 4E. FILING OF RETURNS Time and effort in ling returns 2E. Design and layout of forms (templates in case of online services) PAYMENT OF TAX Time and effort in tax payment 5E. Cost incurred in ling returns

Security of monetary transactions

6E. 8E. 10E. 12E. 14E. 16E. 18E. 20E.

COMMON ATTRIBUTES (Applicable For All Services) Overall quality of service61 7E. Overall quality of governance62 Overall experience of availing service from CTD 9E. Accuracy of transactions Condentiality and security of data 11E. Time and effort in procuring forms Time and effort in accessing information 13E. Predictability of outcome Clarity and simplicity of processes and procedures 15E. Accountability of Ofcials Transparency63 in CTD 17E. Knowledge of Ofcials Ability to inuence policies, rules and procedures 19E. Level of corruption64 through feedback Courtesy and helpfulness of Ofcials 21E. Problem resolution65

__________

Includes a) amount paid to department for which receipt was given, and b) amount paid as bribe to department staff/functionaries Quality of service is understood as fairness, speed of processing, accuracy of transactions, legibility and durability of certicates and printouts, convenience of obtaining service 62 Governance is understood as transparency, accountability and corruption-free working 63 Understanding and awareness of the basis on which decisions affecting you/other users are taken by ofcials 64 Very corrupt-1; Somewhat corrupt-2; Neutral-3; Somewhat less corrupt-4; Not at all corrupt-5 65 Mechanism to rectify inadvertent errors in forms/documents submitted by Dealers to CTD e.g. computational errors/wrong gures
61

60

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Impact Assessment of Commercial Taxes Computerization 2010-Gujarat

22E. 24E. 26E. 28E.

Complaint handling mechanism (including service provided by Call centre/Helpline) Queuing system at CTD Ofce

23E. 25E.

Convenience of working hours66

Convenience of location of ofce (accessibility and ambience) Adherence to Citizen Charter67 27E. Durability and legibility of certicates/receipts Among the above given factors please list the three factors that you consider the most important RECORD THE S.NO. OF THE FACTOR R. SUGGESTIONS68 Please give your suggestions in improving online services: (Multiple Responses)

1F.

Eliminate practice of submission of hard copy to CTD.....a Server speed should be increasedb Tax Consultants should be allowed to make E-payment on behalf of their clients through Consultants Internet Banking A/C...........................................................................................................................................c Maintenance of website should not be done during Ofce Hours of Traders/Tax Consultants..d CTD ofcials should be given adequate training, so that they can handle queries on online services efciently..e Involve more Banks in E-payment.....f Provide templates(w.r.t. returns) that can perform data verication ofine....g Changes in processes/templates should be immediately communicated to dealers....h

Others (Specify)

2F.

Please give your suggestions to increase use of online services: (Multiple Responses) Awareness campaigns on online services for dealers..a Establishment of Common Service Centres to facilitate E-services to all dealers..............b Online processes should be made much more user friendly and simple......c

Others (Specify)

__________
66 67 68

Hours of service in case of online services Adherence of the time frame for service delivery (elapsed time) to that specied in citizens charter This part is for all users - manual and online

281

Impact Assessment of Commercial Taxes Computerization 2010-Gujarat

Annexure F Gujarat: Interview Schedule for CTP (Mandatory Online Services)


Sl. No. State State Code S. IDENTIFICATION DETAILS District District Date of Interview (DD/MM) Code Address with landmark Location of Ofce Town/ Code Village Distance from Ghatak Ofce (Km.)

Rural..1 Urban.2

Phone Land Line: Interviewer Name Code Signature Mobile: Editor Name Code Signature Supervisor Name Code Signature

Respondents Name & Designation

Division

Division Code

Range Ghatak

Range code Ghatak code

Educational qualication of Tax Consultant

T. Prole of Tax Consultant FICA. - 1 LLB - 2 Others (Specify)

Years of Experience as Tax Consultant What was the annual turnover in Financial Year: 2008-09 (INR) Major services provided to clients (only those for which service charge is taken), service charge (average) SERVICE Registration 1; Filing Returns 2; Others Specify. TAX VAT -1; CST 2; Others (Specify) Number of staff in your organization who are involved in activities related to Commercial Taxes Is the Tax Consultant computer literate? Has the Tax Consultant used any online E-Gov. service Yes 1 No - 2 Yes 1 No - 2 U. AWARENESS AND USAGE OF ONLINE SERVICES 1C. Please specify the rst source of awareness about online services Newspaper...1 provided by Commercial Taxes Department Television.2 Dealers....3 Other CTPs....4 Commercial Tax Dep. Ofcial..5 Others (Specify) Part C Tax Service Service Charge (INR) Manual Online

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2C. Which are the online services provided by Commercial Taxes Department? (Multiple Responses)

Application for Registration....1 Application for issue of forms2 Application for refund...3 Filing Returns4 Payment of Taxes5 Information Dissemination..6 Others (Specify) Online Service Registration (application) Filing Returns Payment of Taxes Application for Statutory Forms Seeking information Others (Specify)

3C. Please give details regarding online services used and frequency of use Frequency of Use Daily..1 Weekly..2 Fortnightly.3 Monthly. 4 Quarterly5 Annually..6 Others (Specify) 4C. What are the reasons for using online service (s) (Multiple Responses)

Used/Not Frequency Yes-1 No-2 Yes-1 No-2 Yes-1 No-2 Yes-1 No-2 Yes-1 Yes-1 No-2 No-2

Online process is faster ....1 Online process is more secure..2 Fewer errors in online process..3 Fewer visits to Commercial Taxes Department.4 Online process is more transparent.5 It is mandatory.6 Others (Specify)

V. TIME AND EFFORT AND COSTS OF AVAILING SERVICES Please provide the following details with reference to Online Manual Online maximum of two services that you have availed through online and manual modes: 32D. Services Availed: Application for issue of statutory forms..1 Application for registration.2 Application for cancellation3 33D. 34D. 35D. Application for refunds4 Date of availing service specify month and year D-1: Time and Effort and Cost of Preparation of Documents How many man-hours were spent in completing various forms and preparing supporting documents? Please calculate the amount spent as salary/wages for preparation of documents 36D. 37D. (Total man-hours spent X wage per man-hour) {INR} Cost of stationery69, photocopies and/or internet charges w.r.t service availed {INR} Cost of Statutory Forms and other Forms including courier charges (INR) (NOT APPLICABLE FOR THE SERVICE: 38D.
__________ 69

Manual

APPLICATION FOR ISSUE OF FORMS) Total cost of preparation of documents (INR)

Ledgers, CDs, printing paper, printing ink, carbon paper etc.

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39D.

D-2: Time and Effort and Cost of Availing Services From Commercial Taxes Department How many trips did you need to make to Commercial Tax Ofce for the service including trips for error correction? Purpose of each trip and time spent waiting at CTD Ofce (Including time spent in queue & transaction time at counter) for availing service - (min) To submit documents1 To collect certicate.2 To correct error in certicate/document issued by CTD.....................3 To correct errors in documents submitted by Dealer/Tax Consultant................4 To track application............................5 To seek information................................6 To bank/treasury for making payment - Challan (applicable only for payment).....................7 To fulll requirement of physical presence...8 Others (Specify)

40D.

Trip Purpose Time Purpose Time I II III IV V

Purpose Time Purpose Time

41D.

Please see 8 D if the number of trips is more than one, then ask: Why did you have to make more that one trip? It was required as per CTD procedure......1 To follow up, as there was delay on the part of CTD to provide service.........................2 Could not avail service in previous visit (s) as there was a long queue.......................3 Concerned functionary was not available...4 Counter was not operational.......................5 Documents/application submitted by me were incomplete......6 Others (Specify)

42D.

Do you think you had to wait excessively for availing service in any of the trips? Yes 1 13D No 2 Please specify the reasons for excessive wait Long queue...........1 Ofcials of CTD are inefcient (slow in processing)..2 Processes are too complex & takes lot of time to complete.............................3 Too many applicants at ofce.4 Badly managed queue5 Some windows/counters were not operational...6 Power breakdown..7 Computer/network connectivity failure8 Others (Specify)

43D.

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44D. 45D. 46D. 47D. 48D. 49D.

50D.

51D.

Please specify the travel cost incurred in making a round trip to CTD Ofce (INR) Total travel cost incurred in availing service (number of trips X travel cost per trip) INR Please specify the travel time spent in making a round trip to CTD Ofce (Min.) Total travel time spent in availing service (number of trips X travel time per trip) Min. How many times did you log-in to avail online service? Please see the previous question if the number is more than one, then ask: Why did you have to log-in more than once? Service was not available as server was slow.1 Portal was undergoing maintenance...2 Templates had changed, therefore it had to be downloaded rst............................3 Others (Specify) What was the total time taken to complete transaction Online - it does not include time taken for data entry? (Min) Do you think that the time taken to complete online transaction was excessive? Yes 1; No 2 22 D Why do you think are the reasons for excessive time in online transactions? Server is slow.1 Processes are complex and time consuming2 Errors occur while uploading template3 Others (Specify) Please calculate the amount spent as salary/wages on total time spent in availing service: traveling time + waiting time + time for transaction (man-hours spent X wage per man-hour) {INR} THIS DOES NOT INCLUDE TIME TAKEN FOR FILLING FORMS, PREPARATION OF SUPPORTING DOCUMENTS AND DATA ENTRY Service Charge paid to department for which you got a receipt? (INR) What was the total payment70 made by you for availing the service? (INR) What was the total elapsed time in availing service - how long did it take for the task to be completed, right from the date of applying to actually receiving the service applied for? (this does not include time taken for lling forms, preparation of supporting documents and data entry)? (Hours) Did you pay a bribe directly to Ofcials? Yes-1; No-2 Part E For what purpose did you pay the bribe indicated in the previous question? (Multiple rsp.) To avoid audit assessment by CT Department.1 To inuence functionaries to manipulate records in your favor....................................................2 To expedite the process3 Others (Specify)

52D.

53D.

54D. 55D. 56D.

57D. 58D.

__________ 70

Includes a) amount paid to department for which receipt was given, and b) amount paid as bribe to department staff/functionaries

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W. OVERALL ASSESSMENT Please indicate your perception about improvement on the following attributes in the computerized system vis--vis the manual system: Much worsened-1; Somewhat worsened-2; No change-3; Somewhat improved-4; Much improved-5 1E. Cost of availing service71 2E. Time and effort in availing service72 3E. Overall experience of availing service from 4E. Condentiality and security of data CTD 73 6E. Overall quality of governance74 5E. Effort in preparation of documents 75 7E. Overall quality of service 8E. Accuracy of transactions 9E. Clarity and simplicity of processes and 10E. Accountability of Ofcials procedures 12E. Knowledge of Ofcials 11E. Transparency76 in CTD 13E. Predictability of outcome Complaint handling mechanism77& problem 14E. resolution 15E. Ability to inuence policies, rules and 16E. Level of corruption procedures through feedback 17E. Courtesy and helpfulness of Ofcials 18E. Convenience of working hours 19E. Queuing system at CTD Ofce Convenience of location of center/ofce 20E. (accessibility and ambience) 22E. Durability and legibility of certicates/receipts 21E. Adherence to Citizen Charter78 23E. Among the above given factors please list the three factors that you consider the most important RECORD THE S.NO. OF THE FACTOR X. SUGGESTIONS79 Please give your suggestions in improving online services: (Multiple Responses) Eliminate practice of submission of hard copy to CTD.....1 Server speed should be increased2 Tax Consultants should be allowed to make E-payment on behalf of their clients through Consultants Internet Banking A/C3 Maintenance of website should not be done during Ofce Hours of Traders/Tax Consultants..4 CTD ofcials should be given adequate training, so that they can handle queries on online services efciently..5 Involve more Banks in E-payment.....6 Provide templates(w.r.t. returns) that can perform data verication ofine..........7 Changes in processes/templates should be immediately communicated to dealers.....8 Mistakes in database maintained by CTD w.r.t addresses of dealers should be rectied.9 Others (Specify)

1F.

__________
Much increased-1; Somewhat increased-2; No change-3; Somewhat decreased-4; Much decreased-5 Much increased-1; Somewhat increased-2; No change-3; Somewhat decreased-4; Much decreased-5 73 Much increased-1; Somewhat increased-2; No change-3; Somewhat decreased-4; Much decreased-5 74 Governance is understood as transparency, accountability and corruption-free working 75 Quality of service is understood as fairness, speed of processing, accuracy of transactions, legibility and durability of certicates and printouts, convenience of obtaining service 76 Understanding and awareness of the basis on which decisions affecting you/other users are taken by ofcials 77 Including service provided by Call centre/Helpline 78 Adherence of the time frame for service delivery (elapsed time) to that specied in citizens charter 79 This part is for all users - manual and online
72

71

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2F.

Please give your suggestions to increase use of online services: (Multiple Responses) Awareness campaigns on online services for dealers........1 Establishment of Common Service Centres to facilitate E-services to all dealers..2 Online processes should be made much more user friendly and simple.........3 Others (Specify)

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Annexure G Field Work At the Ghatak Level, two locations was selected on the basis on their distance from Ghatak Ofce one far and the other near. List of Dealers in the selected locations was obtained from CTD Dealers were randomly selected from the list. Number of dealers selected was about 10% more than the number of dealers to be interviewed in that Ghatak as dealers who outsource entire processes to CTPs could not be included in the study. Listing exercise was carried out among selected dealers, which helped us in collecting information such as turnover, services availed, mode used, dependence on CTPs etc. Based on information gathered through listing exercise, Dealers were classied as respondents for either Optional Online Services (treatment/control group) or Mandatory Online Services (recall method). Similarly, CTPs were also classied as respondents for Optional Online Services and Mandatory Online Services. Contact details of CTPs were collected through listing exercise among Dealers

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Annexure H

Gujarat: Dealers Using Optional Online Services


SECTION A: Identication Details
Table 1: Group wise frequency Group Treatment (online) Comparison (manual) Total Frequency 196 195 391 Percent 50.1 49.9 100.0

Table 2: Division and range wise frequency Division Range 4 5 6 Total 15 16 17 18 Total 19 21 Total 22 23 24 25 28 Total Treatment (online) 12 23 16 51 14 11 6 10 41 12 12 24 20 20 20 20 0 80 Comparison (manual) 10 32 10 52 13 11 5 10 39 12 12 24 21 19 20 19 1 80 Total 22 55 26 103 27 22 11 20 80 24 24 48 41 39 40 39 1 160

Ahmedabad

Surat

Bhavnagar

Rajkot

Table 3: Location and group wise frequency Location Treatment (online) 10 5.1% 186 94.9% 196 100.0% Comparison (manual) 9 4.6% 186 95.4% 195 100.0% Total 19 4.9% 372 95.1% 391 100.0%

Rural Urban Total

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Impact Assessment of Commercial Taxes Computerization 2010-Gujarat

SECTION B: Dealer Prole


Table 4: Constitution of enterprise Constitution of your enterprise Proprietor Partnership Private Limited Company Public Limited Company Hindu Undivided Family Cooperative Society Govt. Undertaking Total Treatment (online) 122 62.2% 46 23.5% 18 9.2% 6 3.1% 1 .5% 1 .5% 2 1.0% 196 100.0% Table 5: Type of business Type of business Manufacture Wholesale Retail Hire purchase Work contract Total Treatment (online) 64 32.7% 124 63.3% 7 3.6% 0 .0% 1 .5% 196 100.0% Table 6: VAT registration Registered for VAT Yes Total Treatment (online) 196 100.0% 196
100.0%

Comparison (manual) 149 76.4% 43 22.1% 1 .5% 0 .0% 1 .5% 1 .5% 0 .0% 195 100.0%

Total 271 69.3% 89 22.8% 19 4.9% 6 1.5% 2 .5% 2 .5% 2 .5% 391 100.0%

Comparison (manual) 47 24.1% 110 56.4% 34 17.4% 1 .5% 3 1.5% 195 100.0%

Total 111 28.4% 234 59.8% 41 10.5% 1 .3% 4 1.0% 391 100.0%

Comparison (manual) 195 100.0% 195


100.0%

Total 391 100.0% 391


100.0%

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Impact Assessment of Commercial Taxes Computerization 2010-Gujarat

Table 7: CST registration Registered for CST Yes No Total Treatment (online) 62 31.6% 134 68.4% 196 100.0% Comparison (manual) 26 13.3% 169 86.7% 195 100.0% Total 88 22.5% 303 77.5% 391 100.0%

Table 8: Mode of maintenance of books of accounts Mode in which Books of Accounts are maintained within the organization Manual Computerized Total 4 2.0% 192 98.0% 196 100.0% 81 41.5% 114 58.5% 195 100.0% 85 21.7% 306 78.3% 391 100.0% Treatment (online) Comparison (manual) Total

Table 9: Number of staff involved in activities w.r.t Commercial Taxes Number of staff in the organization involved in activities related to Commercial Taxes 1 2 3 4 5 Total 121 61.7% 55 28.1% 15 7.7% 2 1.0% 3 1.5% 196 100.0% 179 91.8% 14 7.2% 2 1.0% 0 .0% 0 .0% 195 100.0% 300 76.7% 69 17.6% 17 4.3% 2 .5% 3 .8% 391 100.0% Treatment (online) Comparison (manual) Total

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Impact Assessment of Commercial Taxes Computerization 2010-Gujarat

SECTION C: Awareness and Usage of Online Services


Table 10: Awareness on online services Aware about online services provided by Commercial Taxes Department? Yes No Total Online Manual Group Treatment (online) Comparison (manual) 106 302 54.4% 77.2% 89 89 45.6% 22.8% 195 100.0% 391 100.0%

Total 196 100.0% 0 .0% 196 100.0%

Table 11: First source of awareness First source of awareness about online services Newspaper Television Dealers CTPs Commercial tax department ofcial Total Treatment (online) 20 10.2% 5 2.6% 7 3.6% 102 52.0% 62 31.6% 196 100.0% Comparison (manual) 13 12.3% 1 .9% 1 .9% 71 67.0% 20 18.9% 106 100.0% Total 33 10.9% 6 2.0% 8 2.6% 173 57.3% 82 27.2% 302 100.0%

Table 12: Awareness on online services Online services of CTD Total Application for Registration Application for issue of forms Application for refund Filing Returns Payment of Taxes Information Dissemination Total 59 30.1% 142 72.4% 78 39.8% 191 97.4% 149 76.0% 115 58.7% 196 100.0% Online Manual Group Treatment (online) Comparison (manual) 48 45.3% 92 86.8% 45 42.5% 105 99.1% 84 79.2% 79 74.5% 106 100.0% 107 234 123 296 233 194 302 100.0%

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Impact Assessment of Commercial Taxes Computerization 2010-Gujarat

Table 13: Usage of online services Used any of the online services provided by CTD Treatment (online) 196 100.0% 0 .0% 196 100.0% Comparison (manual) 1 .9% 105 99.1% 106 100.0% Total 197 65.2% 105 34.8% 302 100.0%

Yes No Total

Table 14: Reasons for using online services Reasons for using online services Treatment (online) 85 43.4% 67 34.2% 59 30.1% 136 69.4% 47 24.0% 81 41.3% 196 Comparison (manual) 1 100.0% 0 .0% 0 .0% 1 100.0% 0 .0% 0 .0% 1 Total 86 67 59 137 47 81 197

Online process is faster Online process is more secure Fewer errors in online process Fewer visits to commercial taxes department Online process is more transparent It is mandatory Total

Table 15: Reasons for not using online services Reasons for not using online services Do not have skills to use online services Do not have access to hardware/software Do not have access to internet Unreliable power situation Online process is prone to errors Online process is not secure Online process is slow Have to submit hard copy to ofce Total Comparison (manual) 85 81.0% 9 8.6% 16 15.2% 2 1.9% 57 54.3% 1 1.0% 8 7.6% 19 18.1% 105 Total 85 9 16 2 57 1 8 19 105

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Impact Assessment of Commercial Taxes Computerization 2010-Gujarat

SECTION D: Time and Effort and Costs of Availing Services


Table 16: Services Availed in Last 90 Days and Mode of service Services Availed in Last 90 Days Filing returns Payment Seeking Information (including application tracking) Total Total 173 3 20 196 Q2D A Mode of service Online 166 24 5 195 Manual 339 27 25 391

Table 17: Services Availed in Last 90 Days and Mode of service Services Availed in Last 90 Days Filing returns Payment Total Total 2 10 12 Q2D B Mode of service Online 1 150 151

Manual 3 160 163

The tables given above show that there were sufcient responses for the service: Filing of returns (Online 173 and Manual 166) and therefore Independent Samples T Test has been used to analyze this. However, for the remaining two services: Payment and Seeking Information, the number of reTable 18: Time and cost of Filing of Returns Filing Returns Manual Computerized Change (C-M) Time and Cost of Preparation of Documents for Filing of Returns Man-hours were spent in compiling data 5.5361 3.0925 -2.44366 N 166 173 S.E. Mode Comment: Man-hours spent in compiling data is signicantly lower for online dealers. Man-hours were spent for data entry in online template N S.E. Mode Total man-hours for preparation of documents N S.E. Mode 5.5361 166 0.30823 4.00 . NA. 1.5518 173 0.28843 1.00 4.6443 173 0.39802 3.00 -.89187 * 0.30823 4.00 0.17129 2.00

Signicance **

Comment: Total man-hours spent in preparation of documents are signicantly lower for online dealers. Salary/wages for preparation of documents (INR) 115.27 171.13 55.862 **

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Impact Assessment of Commercial Taxes Computerization 2010-Gujarat

Filing Returns N S.E. Mode

Manual 166 7.639 100

Computerized Change (C-M) 173 25.727 100

Signicance

Comment: Salary/wages for preparation of documents is higher for online dealers this is despite the fact that total man-hours spent by them for perpetration of documents are lower than manual dealers. This difference could be because of higher salary/wages of employees who are involved in online ling of returns. It may be noted that employees who are procient in using computers generally get higher salary/wages than those who do not possess this skill. Cost of stationery for preparation of documents (INR) N S.E. Mode

40.3 166 2.445 50

30.32 173 2.645 20

-9.977

**

Comment: Manual users have spent signicantly more on stationery because they have to enter all details on paper. Online users, however, spent less because most details are entered on online template. Cost of access to Internet (INR) NA. 21.73 N S.E. Mode Cost of Statutory Forms and other Forms including courier charges (INR) N S.E. Mode 11.34 166 3.143 0 . 173 1.334 15 32.13 173 4.762 0 20.790 **

Comment: Only about 30% dealers (manual and online taken together) have spent money for forms. Therefore the change seen here cannot be attributed to mode of service used - rather it is because of the difference in turnover of manual and online dealers (online dealers have higher turnover). Service charge paid to Tax Consultant for preparation 527.94 of documents(INR) N 155 S.E. Mode cally signicant. Total cost of preparation of documents (INR) N S.E. Mode modes of service delivery. 22.002 500

459.04 141 35.848 150

-68.893

NS

Comment: Service charge paid to CTPs is lower in the case of online dealers. However, this difference is not statisti659.8494 166 25.58212 850.00 629.4393 173 42.7158 245.00a -30.41009 NS

Comment: With respect to total cost of preparation of documents, there isnt any signicant difference between the two

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Number of trips N S.E. Mode

Filing Returns Manual Computerized Change (C-M) Time and Cost of Availing Services From Commercial Taxes Department 1.42 1.25 -.173 166 0.039 1 173 0.039 1

Signicance **

Comment: Both manual and online users have to make at least one trip to CTD ofce. Manual users, however, had to make more number of trips. Waiting time (Minutes) 52.95 47.86 -5.09 NS N 166 170 S.E. Mode Travel cost (INR) N S.E. Mode Travel time (Minutes) N S.E. Mode Number of times user had to log-in to avail online service N S.E. Mode Total time taken to complete transaction Online (Minutes) N S.E. Mode NA 2.58 60 47.6 166 2.376 40 68.01 166 3.348 60 NA. 1.73 60 43.38 170 3.148 20a 59.5 170 3.409 30 1.63 173 . 0.056 1 28.24 173 . 0.988 30 -8.512 * -4.214 NS

Comment: According to many online users the server was slow due to which the time taken to complete online transaction was excessive. Yet another problem pointed out by users is that while uploading the online template, if there is an error (usually syntax error), the online application will not accept the template. Consequently the user has to rectify the error and upload the template yet again. This leads to wastage of time many dealers therefore suggest that the template should be designed to detect errors during data entry stage itself, so that time is not wasted while uploading the template. Amount spent as salary/wages on total time spent in 42.51 73.74 31.228 ** availing service (INR) N 166 173 S.E. Mode 2.228 25 4.162 50

Comment: The difference seen is mainly because online users have to submit hard copy to CTD for which they have to make at least one trip and also spent time for online transaction. Besides, the wages of employees who are doing online transactions could be higher than that of employees that do manual transactions as using online services require higher skill level.

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Filing Returns Service Charge paid to department (INR) N S.E. Service charge paid to Tax Consultant for facilitating service from CTD Ofce (INR) N S.E. Mode Amount paid as bribe (INR) N S.E. Mode Total payment made (Rs) N S.E. Mode Time in availing service through Manual process (Hours) N S.E. Mode Time in availing service through Online process (Hours) N S.E. Mode Total elapsed time in availing service (Hours) N S.E. Mode concerned

Manual 0 166 0

Computerized Change (C-M) 0 173 0

Signicance

260.02 166 27.469 0 46.3855 166 13.41999 0 306.4 166 28.471 0 2.5857 166 0.70613 1.00 0 166 0 .00 2.7348 166 0.71876 1.00

255.78 173 37.475 0 42.2659 173 9.41653 0 298.05 173 38.292 0 1.4839 173 0.46922 1.00 0.7738 173 0.20763 .50 2.2576 173 0.50839 1.50

-4.238

NS

-4.11965

NS

-8.357

NS

-1.10185

NS

.77376

-.47719

NS

Comment: There is no signicant difference between the two modes as far as total elapsed time in availing service is

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OTHER TABLES: Time and Cost of Filing Returns


Table 19: Dependence on CTP Processes were related to the service outsourced Treatment (online) 33 19.1% 140 80.9% 173 100.0% Comparison (manual) 11 6.6% 155 93.4% 166 100.0% Total 44 13.0% 295 87.0% 339 100.0%

No, it was done completely in-house Yes, it was partially done by CTP Total

Table 20: Dependence on CTP Reasons for depending on CTPs Treatment (online) 112 80.0% 85 60.7% 9 6.4% 36 25.7% 140 Comparison (manual) 139 89.7% 73 47.1% 2 1.3% 19 12.3% 155 Total 251 158 11 55 295

Due to lack of sufcient knowledge on processes To ensure accuracy of data given to department Want to avoid interface with Dep. ofcials Do not want to spent time on this Total

Table 21: Number of trips Number of trips Treatment (online) 3 1.7% 127 73.4% 40 23.1% 3 1.7% 173 100.0% Comparison (manual) 0 .0% 97 58.4% 68 41.0% 1 .6% 166 100.0% Total 3 .9% 224 66.1% 108 31.9% 4 1.2% 339 100.0%

0 1 2 3 Total

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Impact Assessment of Commercial Taxes Computerization 2010-Gujarat

Table 22: Reasons for making more than one trip Reasons to make more that one trip Treatment (online) 0 .0% 34 79.1% 1 2.3% 7 16.3% 1 2.3% 0 .0% 43 100.0% Comparison (manual) 5 7.2% 51 73.9% 3 4.3% 7 10.1% 1 1.4% 2 2.9% 69 100.0% Total 5 4.5% 85 75.9% 4 3.6% 14 12.5% 2 1.8% 2 1.8% 112 100.0%

It was required -as per CTD procedure To follow up, a there was delay on the part of CTD to provide service Could not avail service in previous visit as there was a long queue Concerned functionary was not available Counter was not operational Documents/application submitted by me were incomplete Total

Table 23: Waiting time for availing service Had to wait excessively for availing service in any of the trips Yes No Total Treatment (online) 26 15.3% 144 84.7% 170 100.0% Comparison (manual) 21 12.7% 145 87.3% 166 100.0% Total 47 14.0% 289 86.0% 336 100.0%

Table 24: Excessive waiting time for availing service Reasons for excessive wait Long queue/ Too many applicants at ofce/ Badly managed queue Ofcials of CTD are inefcient (slow in processing) Processes are too complex & take lot of time to complete Computer/network connectivity failure Total Treatment (online) 1 3.8% 21 80.8% 1 3.8% 3 11.5% 26 100.0% Comparison (manual) 5 23.9% 15 71.4% 1 4.8% 0 .0% 21 100.0% Total 6 12.7% 36 76.6% 2 4.3% 3 6.4% 47 100.0%

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Table 25: Number of times user had to log-in for availing service Number of times log-in to avail online service 1 2 3 4 Total Treatment (online) 88 50.9% 64 37.0% 18 10.4% 3 1.7% 173 100.0% Total 88 50.9% 64 37.0% 18 10.4% 3 1.7% 173 100.0%

Table 26: Reasons to log-in more time Reasons to log-in more than once Service was not available as server was slow Templates had changed, therefore it had to be downloaded rst Others Total Treatment (online) 81 95.3% 3 3.5% 1 1.2% 85 100.0% Total 81 95.3% 3 3.5% 1 1.2% 85 100.0%

Table 27: Time taken to complete online transaction Time taken to complete online transaction was excessive Yes No Total Treatment (online) 63 36.4% 110 63.6% 173 100.0% Total 63 36.4% 110 63.6% 173 100.0%

Table 28: Time taken to complete online transaction Reasons for excessive time in online transaction Server is slow Errors occur while uploading template Total Treatment (online) 61 96.8% 2 3.2% 63 100.0% Total 61 96.8% 2 3.2% 63 100.0%

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Table 29: Bribe paid Paid a bribe directly to Ofcials Treatment (online) 27 15.6% 146 84.4% 173 100.0% Comparison (manual) 31 18.7% 135 81.3% 166 100.0% Total 58 17.1% 281 82.9% 339 100.0%

Yes No Total

Table 30: Purpose of bribes Purpose of bribe Treatment (online) 9 33.3% 13 48.1% 17 63.0% 0 .0% 27 Comparison (manual) 4 12.9% 9 29.0% 26 83.9% 2 6.5% 31 Total 13 22 43 2 58

To avoid audit assessment by CT department To inuence functionaries to manipulate records in our favor To expedite the process Others Total

SECTION E: Overall Assessment


Table 31: Overall Assessment

Change Overall Assessment Time and effort in ling returns N S.E. Cost incurred in ling returns N S.E. Design and layout of forms N S.E. Time and effort in tax payment Computerized 4.39 196 .062 4.10 196 .070 3.50 172 .081 4.18 Manual (C-M) 3.68 174 .080 3.43 173 .094 3.03 30 .169 3.85 .323 ** .467 ** .669 ** .710 ** Signicance

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Change Overall Assessment N S.E. Security of monetary transactions N S.E. Overall quality of service N S.E. Overall quality of governance N S.E. Overall experience of availing service from CTD N S.E. Accuracy of transactions N S.E. Condentiality and security of data N S.E. Time and effort in procuring forms N S.E. Time and effort in accessing information N S.E. Predictability of outcome N S.E Clarity and simplicity of processes and procedures N S.E Accountability of Ofcials N S.E. Transparency in CTD N Computerized 91 .102 4.30 91 .090 4.20 196 .052 4.20 196 .065 4.13 196 .060 4.42 196 .065 4.52 196 .057 2.95 196 .085 4.30 196 .065 3.99 196 .058 3.72 196 .072 3.21 196 .076 3.88 196 Manual (C-M) 184 .081 4.26 184 .086 3.55 195 .054 3.42 193 .068 3.37 191 .062 3.93 195 .088 3.99 195 .078 3.49 195 .093 3.10 195 .091 3.37 195 .065 3.68 195 .080 3.15 195 .078 3.29 193 .592 ** .060 NS .037 NS .626 ** 1.193 ** -.543 ** .531 ** .490 ** .761 ** .784 ** .650 ** .036 NS Signicance

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Impact Assessment of Commercial Taxes Computerization 2010-Gujarat

sponses were insufcient to carry out analysis.


Overall Assessment S.E. Knowledge of Ofcials N S.E. Ability to inuence policies, rules and procedures N S.E. Level of corruption N S.E. Courtesy and helpfulness of Ofcials N S.E. Problem resolution N S.E. Complaint handling mechanism N S.E. Convenience of working hours N S.E. Queuing system at CTD Ofce N S.E. Convenience of location of ofce N S.E. Adherence to Citizen Charter N S.E. Dependence on CTPs N S.E. Durability and legibility of certicates/receipts N S.E. Computerized .069 2.87 196 .074 3.85 196 .057 2.74 196 .070 3.22 194 .074 3.29 196 .069 3.38 195 .088 3.82 196 .063 3.68 195 .089 4.26 196 .078 3.47 195 .084 3.53 196 .065 4.02 180 .081 Manual .076 4.03 195 .088 3.66 195 .067 2.60 195 .081 3.26 195 .076 3.05 195 .070 3.42 186 .099 3.52 195 .063 2.88 187 .081 4.28 195 .079 3.63 192 .085 3.61 192 .075 3.90 182 .062

Change Signicance (C-M) -1.163 **

.191

**

.140

NS

-.040

NS

.234

**

-.040

NS

.298

NS

.800

**

-.022

NS

-.158

NS

-.084

NS

.116

NS

303

Impact Assessment of Commercial Taxes Computerization 2010-Gujarat

Composite Score
Table 32: Composite Score Respondents who Considered Factor to be Among Three Most Important Column No. a b Average of Individual Scores c d Improvement e F

Factor

Number

Percentage (Column a / Computerized Total of Column a) 4.7% 3.5% .4% 2.5% 5.4% 1.3% 2.2% 1.5% 2.4% 2.2% 4.7% 3.8% .6% .8% 3.5% .4% 3.6% 3.7% 14.8% 6.0% 9.0% 6.1% 3.9% 1.4% 4.39 4.10 3.50 4.18 4.30 4.20 4.20 4.13 4.42 4.52 2.95 4.30 3.99 3.72 3.21 3.88 2.87 3.85 2.74 3.22 3.29 3.38 3.82 3.68

Weighted Difference Score (Column c Manual (Column e X Column d) Column b) 3.68 3.43 3.03 3.85 4.26 3.55 3.42 3.37 3.93 3.99 3.49 3.10 3.37 3.68 3.15 3.29 4.03 3.66 2.60 3.26 3.05 3.42 3.52 2.88 .710 .669 .467 .323 .036 .650 .784 .761 .490 .531 -.543 1.193 .626 .037 .060 .592 -1.163 .191 .140 -.040 .234 -.040 .298 .800 0.03337 0.023415 0.001868 0.008075 0.001944 0.00845 0.017248 0.011415 0.01176 0.011682 -0.02552 0.045334 0.003756 0.000296 0.0021 0.002368 -0.04187 0.007067 0.02072 -0.0024 0.02106 -0.00244 0.011622 0.0112

Time and effort in ling returns Cost incurred in ling returns Design and layout of forms Time and effort in tax payment Security of monetary transactions Overall quality of service Overall quality of governance Overall experience of availing service from CTD Accuracy of transactions Condentiality and security of data Time and effort in procuring forms Time and effort in accessing information Predictability of outcome Clarity and simplicity of processes and procedures Accountability of Ofcials Transparency in CTD Knowledge of Ofcials Ability to inuence policies, rules and procedures through feedback Level of corruption Courtesy and helpfulness of Ofcials Problem resolution Complaint handling mechanism Convenience of working hours Queuing system at CTD Ofce

55 41 5 29 63 15 26 18 28 26 55 44 7 9 41 5 42 43 174 70 106 72 46 16

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Impact Assessment of Commercial Taxes Computerization 2010-Gujarat

Column No. Factor Convenience of location of ofce Adherence to Citizen Charter Dependence on CTPs Durability and legibility of certicates/receipts Total (Sum of column)

Respondents who Considered Average of Individual Factor to be Among Three Improvement Scores Most Important a b c d e F Percentage Weighted Difference (Column a Score (Column c Number / Computerized Manual (Column e Total of Column X Column d) a) Column b) 50 33 46 8 1173 4.3% 2.8% 3.9% .7% 100.0% 4.26 3.47 3.53 4.02 4.28 3.63 3.61 3.90 -.022 -.158 -.084 .116 -0.00095 -0.00442 -0.00328 0.000812 0.174687

SECTION F: Suggestions
Table 33: Suggestions for improving online services Suggestions to improve online services Eliminate practice of submission of hard copy of CTD Server speed should be increased Tax consultants should be allowed to make E-payment on behalf of their clients through Consultants Internet Banking A/C Maintenance of website should not be done during ofce hour CTD ofcials should be given adequate training, so that they can handle queries on online services efciently Involve more banks in e-payment Provide templates (w.r.t. returns) that can perform data verication ofine Changes in processes/templates should be immediately communicated to users Total N 301 273 20 32 195 225 93 299 1438 Percent 20.9% 19.0% 1.4% 2.2% 13.6% 15.6% 6.5% 20.8% 100.0% Percent of Cases 77.0% 69.8% 5.1% 8.2% 49.9% 57.5% 23.8% 76.5%

Table 34: Suggestions for increasing usage of online services Suggestions to increase use of e-services Responses N 306 314 341 961 Percent 31.8% 32.7% 35.5% 100.0% Percent of Cases

Awareness campaigns on online services for dealers Establishment of common service centres to facilitate e-services to all Online processes should be made much more user friendly and simple Total

78.3% 80.3% 87.2%

305

Impact Assessment of Commercial Taxes Computerization 2010-Gujarat

Annexure I

Gujarat: Dealers Using Mandatory Online Services


SECTION A: Identication Details
Table 1: Division wise frequency Division Ahmedabad Range 4 5 6 Total 15 16 17 18 Total 19 21 Total 22 23 24 25 Total Table 2: Location wise frequency Location Rural Urban Total Frequency 9 183 192 Percent 4.7 95.3 100.0 N 10 24 17 51 12 10 7 9 38 12 12 24 18 20 20 20 79

Surat

Bhavnagar

Rajkot

SECTION B: Dealer Prole


Table 3: Constitution of enterprise Constitution of enterprise Proprietor Partnership Private Limited Company Public Limited Company Total Frequency 101 54 35 2 192 Percent 52.6 28.1 18.2 1.0 100.0

306

Impact Assessment of Commercial Taxes Computerization 2010-Gujarat

Table 4: Type of business


Type of business Frequency Percent

Manufacture Wholesale Retail Total

67 112 13 192

34.9 58.3 6.8 100.0

Table 5: VAT registration Registered for VAT Yes Total Frequency 192 192 Table 6: CST registration Registered for CST Yes Total Frequency 192 192 Table 7: Mode of maintenance of books of accounts Mode in which Books of Accounts are maintained within the organization Computerized Frequency 192 Percent 100.0 Percent 100.0 100.0 Percent 100.0 100.0

Table 8: Number of staff involved in activities w.r.t Commercial Taxes Number of staff in the organization involved in activities related to Commercial Taxes 1 2 3 4 5 Total Frequency 140 35 9 4 4 192 Percent 72.9 18.2 4.7 2.1 2.0 100.0

SECTION C: Awareness And Usage Of Online Services


Table 9: Source of awareness on online services First source of awareness about online services Newspaper CTPs Commercial tax department ofcial Total Frequency 15 71 106 192 Percent 7.8 37.0 55.2 100.0

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Impact Assessment of Commercial Taxes Computerization 2010-Gujarat

Table 10: Awareness on online services e-Services of CTD Application for Registration Application for issue of forms Application for refund Filing Returns Payment of Taxes Information Dissemination Total N 74 192 72 187 116 148 789 Responses Percent 9.4% 24.3% 9.1% 23.7% 14.7% 18.8% 100.0% Percent of Cases 38.5% 100% 37.5% 97.4% 60.4% 77.1%

Table 11: Reasons for using online services e-Services of CTD Online process is faster Online process is more secure Fewer errors in online process Fewer visits to commercial taxes department Online process is more transparent It is mandatory Total N 119 65 47 130 24 123 508 Responses Percent 23.4% 12.8% 9.3% 25.6% 4.7% 24.2% 100.0% Percent of Cases 62.0% 33.9% 24.5% 67.7% 12.5% 64.1%

SECTION D: Time and Effort and Costs of Availing Services


Table 12: Time and cost of availing service Obtaining Statutory Forms Change (C-M) Time and Cost of Availing Services From Commercial Taxes Department 1.33 192 .034 1 .00 192 .000 0 -1.333 Manual Computerized Signicance

Number of trips N S.E. Mode

**

Comment: None of the online users visited CTD to obtain statutory forms. Clearly, online service has helped dealers in terms of reducing trips to CTD. 60.44 NA Waiting time (Minutes) N S.E. Mode Travel cost (INR) N S.E. Mode Travel time (Minutes) 192 2.14855 60 49.51 192 2.374 50 68.31 NA NA

308

Impact Assessment of Commercial Taxes Computerization 2010-Gujarat

Obtaining Statutory Forms N S.E. Mode Number of times user had to log-in to avail online service N S.E. Mode Total time taken to complete transaction Online (Minutes) N S.E. Mode Amount spent as salary/wages on total time spent in availing service (INR) N S.E. Mode

Manual 192 3.589 60 NA

Computerized

Change (C-M)

Signicance

1.82 192 .067 1

NA

29.35 192 1.060 30

59.84 192 3.143

15.03 192 .934

-44.818

**

33 8 Comment: The difference is because online users did not have to visit CTD to obtain forms thus saving salary/wages for waiting time and travel time Service Charge paid to department (INR) 0 0 N 192 192 S.E. Mode Service charge paid to Tax Consultant for facilitating service from CTD Ofce (INR) N S.E. Mode Amount paid as bribe (INR) N S.E. Mode 0 0 .00 192 .00 .00 107.9948 192 12.17280 0 0 .00 192 .00 .00 8.23 192 4.39202 -99.765 **

0 0 Comment: Online users do not have to approach CTD ofcials for statutory forms. Therefore, there has been signicant reduction in bribes for this service. Total payment made (Rs) 107.99 8.23 -99.76563 ** N 192 192 S.E. Mode 12.173 4.392 0 0 Comment: As there is no service charge or payment made to CTP, the only payment made is bribes. Total elapsed time in availing service (Hours) N S.E. Mode 147.83 192 8.579 337.66 192 29.178 189.828 **

120 48 Comment: The data shows that there has been a signicant increase in time taken for availing service. While in the manual service it used to take about 6 days to obtain the forms, in the online mode it takes about 14 days.

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Impact Assessment of Commercial Taxes Computerization 2010-Gujarat

OTHER TABLES: Time And Effort And Costs Of Availing Service A. Online Service
Table 13: Dependence on CTPs Processes related to the service outsourced? No, it was done completely in house Yes, it was partially done by CTP Total Frequency 172 20 192 Percent 89.6 10.4 100.0

Table 14: Reasons for dependence on CTPs Reasons for depending on CTP Due to lack of sufcient knowledge on processes To ensure accuracy of data given to Department Want to avoid interface with Dep. ofcials Do not want to spent time on this Total N 15 7 2 4 28 Percent 53.6% 25.0% 7.1% 14.3% 100.0% Percent of Cases 75.0% 35.0% 10.0% 20.0%

Table 15: Number of trips Number of trips need to make to CTD 0 Frequency 192 Percent 100.0

Table 16: Number of times user had to log-in for availing service Number of times log-in to avail online service 1 2 3 4 5 6 Total Frequency 84 71 28 6 2 1 192 Percent 43.8 37.0 14.6 3.1 1.0 .5 100.0

Table 17: Number of times user had to log-in for availing service Reasons to log-in more than once Service was not available as server was slow Portal was undergoing maintenance Templates had changed, therefore it had to be downloaded rst Total Frequency 103 2 3 108 Valid Percent 95.4 1.9 2.8 100.0

310

Impact Assessment of Commercial Taxes Computerization 2010-Gujarat

Table 18: Time taken to complete online transaction Time taken to complete online transaction was excessive Yes No Total Frequency 97 95 192 Valid Percent 50.5 49.5 10 0.0

Table 19: Time taken to complete online transaction Reasons for excessive time in online transaction Server is slow Processes are complex and time consuming Errors occur while uploading template Total Table 20: Bribe paid Paid a bribe directly to Ofcials Yes No Total Table 21: Purpose of bribe Purpose of the bribe To expedite the process Frequency 4 Valid Percent 100.0 Frequency 4 188 192 Percent 2.1 97.9 100.0 Frequency 78 18 1 97 Valid Percent 80.4 18.6 1.0 100.0

B. Manual Service
Table 22: Dependence on CTPs Processes related to the service outsourced No, it was done completely in house Yes, it was partially done by CTP Total Frequency 95 97 192 Percent 49.5 50.5 100.0

Table 23: Reasons for dependence on CTPs Reasons for depending on CTP Due to lack of sufcient knowledge on processes To ensure accuracy of data given to Department Want to avoid interface with Dep. ofcials Do not want to spent time on this Total N 82 79 2 4 167 Responses Percent 49.1% 47.3% 1.2% 2.4% 100.0% Percent of Cases 84.5% 81.4% 2.1% 4.1%

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Impact Assessment of Commercial Taxes Computerization 2010-Gujarat

Table 24: Number of trips Number of trips need to make to CTD 1 2 Total Frequency 128 64 192 Percent 66.7 33.3 100.0

Table 25: Number of trips Reasons to make more than one trip It was required - as per CTD procedure To follow up, as there was delay on the part of CTD to provide service Concerned functionary was not available Counter was not operational Documents/application submitted by me were incomplete Total N 13 45 10 2 1 71 Responses Percent 18.3% 63.4% 14.1% 2.8% 1.4% 100.0% Percent of Cases 20.3% 70.3% 15.6% 3.1% 1.6% 110.9%

Table 26: Waiting time for availing service Had to wait excessively for availing service in any of the trips Yes No Total Frequency 43 149 192 Percent 22.4 77.6 100.0

Table 27: Excessive waiting time for availing service

Reasons for excessive wait Long queue/ Too many applicants at ofce/ Badly managed queue Ofcials of CTD are inefcient (slow in processing) Some windows/counters were not operational Power breakdown Others Total Table 28: Bribe paid Paid a bribe directly to Ofcials Yes No Total

Responses N Percent 28 47.4% 23 3 4 1 59 39.0% 5.1% 6.8% 1.7% 100.0%

Percent of Cases 65.1% 53.5% 7.0% 9.3% 2.3% 137.2%

Frequency 77 115 192

Percent 40.1 59.9 100.0

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Impact Assessment of Commercial Taxes Computerization 2010-Gujarat

Table 29: Purpose of bribes Purpose of bribe To avoid audit assessment by CT Department To inuence functionaries to manipulate records in our favor To expedite the process Total Responses N Percent 1 1.0% 28 73 102 27.5% 71.6% 100.0% Percent of Cases 1.3% 36.4% 94.8% 132.5%

SECTION E: Overall Assessment


Table 30: Overall Assessment Overall Assessment Cost of availing service N S.E. Time and effort in availing service N S.E. Overall experience of availing service from CTD N S.E. Condentiality and security of data N S.E. Effort in preparation of documents N S.E. Overall quality of governance N S.E. Overall quality of service N S.E. Accuracy of transactions N S.E. Clarity and simplicity of processes and procedures N S.E. Accountability of Ofcials N S.E. Transparency in CTD N S.E. Knowledge of Ofcials N S.E. Predictability of outcome N S.E Complaint handling mechanism & problem resolution Computerized 4.13 192 .064 3.92 192 .064 3.95 192 .058 4.33 192 .053 4.08 192 .063 3.95 192 .054 3.97 192 .049 4.31 191 .060 3.33 192 .075 3.57 191 .071 3.88 191 .064 3.21 192 .079 3.83 190 .055 3.54 Manual 2.89 192 .061 2.86 192 .072 2.86 192 .064 3.68 192 .092 3.14 192 .081 2.92 192 .068 2.83 192 .064 3.53 191 .096 3.65 192 .088 2.86 191 .068 2.93 191 .061 3.81 192 .081 2.95 190 .066 3.02 Change (C-M) 1.240 1.063 1.089 .651 .943 1.026 1.135 .780 -.313 .707 .953 -.604 .879 .524 Signicance ** ** ** ** ** ** ** ** ** ** ** ** ** **

313

Impact Assessment of Commercial Taxes Computerization 2010-Gujarat

Overall Assessment N S.E Ability to inuence policies, rules and procedures N S.E. Convenience of location of center/ofce N S.E. Courtesy and helpfulness of Ofcials N S.E. Convenience of working hours N S.E. Queuing system at CTD Ofce N S.E. Level of corruption N S.E. Adherence to Citizen Charter N S.E. Dependence on CTPs N S.E. Durability and legibility of certicates/receipts N S.E.

Computerized 191 .072 3.92 191 .056 4.09 187 .076 3.60 191 .072 3.72 192 .059 3.91 187 .074 2.48 190 .088 3.76 191 .061 2.99 189 .078 3.90 174 .071

Manual 191 .074 3.09 191 .071 3.79 187 .091 2.94 191 .071 2.99 192 .074 2.61 187 .064 2.19 190 .077 3.01 191 .068 3.62 189 .101 3.22 174 .090

Change (C-M) .827 .299 .660 .724 1.305 .289 .754 -.630 .684

Signicance

** ** ** ** ** ** ** ** **

Composite Score
Table 31: Composite Score Respondents who Considered Factor to be Among Three Most Important Column No. a b Average of Individual Scores c d

Improvement e F

Factor

Number

Weighted Difference Score Percentage (Column c (Column e (Column a/ ComputManual erized X Total of Column a) Column d) Column b) 3.3% 2.6% 1.0% .5% 2.3% 1.0% .5% 4.13 3.92 3.95 4.33 4.08 3.95 3.97 2.89 2.86 2.86 3.68 3.14 2.92 2.83 1.240 1.063 1.089 .651 .943 1.026 1.135 0.04092 0.027638 0.01089 0.003255 0.021689 0.01026 0.005675

Cost of availing service Time and effort in availing service Overall experience of availing service from CTD Condentiality and security of data Effort in preparation of documents Overall quality of governance Overall quality of service

19 15 6 3 13 6 3

314

Impact Assessment of Commercial Taxes Computerization 2010-Gujarat

Column No.

Respondents who Considered Factor to be Among Three Most Important a b

Average of Individual Scores c d

Improvement e

Factor

Number

Accuracy of transactions Clarity and simplicity of processes and procedures Accountability of Ofcials Transparency in CTD Knowledge of Ofcials Predictability of outcome Complaint handling mechanism & problem resolution Ability to inuence policies, rules and procedures through feedback Convenience of location of center/ofce (accessibility and ambience) Courtesy and helpfulness of Ofcials Convenience of working hours Queuing system at CTD Ofce Level of corruption Adherence to Citizen Charter Dependence on CTPs Durability and legibility of certicates/ receipts Total (Sum of column)

3 5 67 22 112 7 38 24 12 43 34 14 95 11 19 5 576

F Weighted Percentage Difference Score (Column a/ Comput(Column c (Column e Manual Total of erized X Column a) Column d) Column b) .5% 4.31 3.53 .780 0.0039 .9% 11.6% 3.8% 19.4% 1.2% 6.6% 4.2% 2.1% 7.5% 5.9% 2.4% 16.5% 1.9% 3.3% .9% 100.0% 3.33 3.57 3.88 3.21 3.83 3.54 3.92 4.09 3.60 3.72 3.91 2.48 3.76 2.99 3.90 3.65 2.86 2.93 3.81 2.95 3.02 3.09 3.79 2.94 2.99 2.61 2.19 3.01 3.62 3.22 -.313 .707 .953 -.604 .879 .524 .827 .299 .660 .724 1.305 .289 .754 -.630 .684 -0.00282 0.082012 0.036214 -0.11718 0.010548 0.034584 0.034734 0.006279 0.0495 0.042716 0.03132 0.047685 0.014326 -0.02079 0.006156 0.379518

315

Impact Assessment of Commercial Taxes Computerization 2010-Gujarat

SECTION F: Suggestions
Table 32: Suggestions for improving online services Suggestions to improve e-services N Eliminate practice of submission of hard copy of CTD Server speed should be increased Tax consultants should be allowed to make E-payment on behalf of clients Maintenance of website should not be done during ofce hour CTD ofcials should be given adequate training, so that the Involve more banks in e-payment Provide templates (w.r.t. returns) that can perform data verication ofine Changes in processes/templates should be immediately communicated In case of discrepancies in data/documents submitted by dealers, CTD should intimate them at the earliest Total 171 153 13 13 75 135 29 84 100 773 Responses Percent 22.1% 19.8% 1.7% 1.7% 9.7% 17.5% 3.8% 10.9% 12.9% 100.0% Percent of Cases 89.1% 79.7% 6.8% 6.8% 39.1% 70.3% 15.1% 43.8% 52.1%

Table 33: Suggestions for increasing usage of online services Suggestions to increase use of e-service N Awareness campaigns on online services for dealers Establishment of common service centres to facilitate e-service to all Online processes should be made much more user friendly and simple Total 165 135 119 419 Responses Percent 39.4% 32.2% 28.4% 100.0% Percent of Cases 85.9% 70.3% 62.0%

316

Impact Assessment of Commercial Taxes Computerization 2010-Gujarat

Annexure J

Gujarat: CTPs Using Optional Online Services


SECTION A: Identication Details
Table 1: Group wise frequency Group Treatment (online) Comparison (manual) Total Frequency 74 74 148 Percent 50.0 50.0 100.0

Table 2: Division and range wise frequency Division Range 4 5 6 Total 15 16 17 18 Total 19 21 Total 22 23 24 25 Total Treatment (online) 9 8 1 18 4 5 3 4 16 4 4 8 9 8 8 7 32 Comparison (manual) 9 8 1 18 4 4 4 4 16 5 3 8 8 8 8 8 32 Total 18 16 2 36 8 9 7 8 32 9 7 16 17 16 16 15 64

Ahmedabad

Surat

Bhavnagar

Rajkot

Table 3: Location and group wise frequency Location Treatment (online) 74 100.0% 74 100.0% Comparison (manual) 74 100.0% 74 100.0% Total 148 100.0% 148 100.0%

Urban Total

317

Impact Assessment of Commercial Taxes Computerization 2010-Gujarat

SECTION B: Dealer Prole


Table 4: Education of CTP Educational qualication of Tax Consultant CA LLB B.Com Total Treatment (online) 13 17.6% 57 77.0% 4 5.4% 74 100.0% Table 5: Years of experience of CTP Years of Experience as Tax Consultant Treatment (Online) 9 12.2% 22 29.7% 12 16.2% 13 17.6% 10 13.5% 8 10.8% 74 100.0% Comparison (Manual) 11 14.9% 8 10.8% 17 23.0% 13 17.6% 7 9.5% 18 24.3% 74 100.0% Total 20 13.5% 30 20.3% 29 19.6% 26 17.6% 17 11.5% 26 17.6% 148 100.0% Comparison (manual) 7 9.5% 57 77.0% 10 13.5% 74 100.0% Total 20 13.5% 114 77.0% 14 9.5% 148 100.0%

1-5 6-10 11-15 16-20 21-25 >25 Total

Table 6: Number of staff involved in activities w.r.t Commercial Taxes Number of staff in the organization involved in activities related to Commercial Taxes 1 2 3 4 5 Total Treatment (online) 1 1.4% 15 20.3% 25 33.8% 17 23.0% 16 21.70% 74 100.0% Comparison (manual) 3 4.1% 23 31.1% 25 33.8% 17 23.0% 6 8.10% 74 100.0% Total 4 2.7% 38 25.7% 50 33.8% 34 23.0% 22 15.00% 148 100.0%

318

Impact Assessment of Commercial Taxes Computerization 2010-Gujarat

Table 7: Computer literacy of CTP Tax Consultant is computer literate Treatment (online) 74 100.0% 0 .0% 74 100.0% Comparison (manual) 47 63.5% 27 36.5% 74 100.0% Total 121 81.8% 27 18.2% 148 100.0%

Yes No Total

Table 8: Experience in using online services Tax Consultant used any online e-Gov. service Treatment (online) 74 100.0% 0 .0% 74 100.0% Comparison (manual) 18 38.3% 29 61.7% 47 100.0% Total 91 75.2% 30 24.8% 121 100.0%

Yes No Total

SECTION C: Awareness and Usage of Online Services


Table 9: Awareness on online services Aware about online services provided by Commercial Taxes Department Yes No Total Treatment (online) 74 100.0% 0 .0% 74 100.0% Comparison (manual) 55 74.3% 19 25.7% 74 100.0% Total 129 87.2% 19 12.8% 148 100.0%

Table 10: First source of awareness First source of awareness about online services Treatment (online) 8 10.8% 1 1.4% 7 9.5% 58 78.4% 74 100.0% Comparison (manual) 10 18.2% 0 .0% 4 7.3% 41 74.5% 55 100.0% Total 18 14.0% 1 .8% 11 8.5% 99 76.7% 129 100.0%

Newspaper Television Other CTPs Commercial tax department ofcial Total

319

Impact Assessment of Commercial Taxes Computerization 2010-Gujarat

Table 11: Awareness on online services e-Services of CTD Application for Registration Application for issue of forms Application for refund Filing Returns Payment of Taxes Information Dissemination Total Treatment (online) 55 74.3% 72 97.3% 63 85.1% 74 100.0% 70 94.6% 68 91.9% 74 Comparison (manual) 39 70.9% 53 96.4% 39 70.9% 54 98.2% 48 87.3% 53 96.4% 55 Total 94 125 102 128 118 121 129

Table 12: Usage of online services Used any e-Services provided by CTD Yes No Total Treatment (online) 74 100.0% 0 .0% 74 100.0% Comparison (manual) 0 .0% 55 100.0% 55 100.0% Total 74 57.4% 55 42.6% 129 100.0%

Table 13: Reasons for using online services Reasons for using e-services N Online process is faster Online process is more secure Fewer errors in online process Fewer visits to commercial taxes department Online process is more transparent It is mandatory Total 54 29 15 56 14 39 207 Responses Percent 26.1% 14.0% 7.2% 27.1% 6.8% 18.8% 100.0% Percent of Cases 73.0% 39.2% 20.3% 75.7% 18.9% 52.7%

320

Impact Assessment of Commercial Taxes Computerization 2010-Gujarat

Table 14: Reasons for not using online services Reasons for not using online services Do not have skills to use online services Do not have access to hardware/software Do not have access to internet Unreliable power situation Online process is prone to errors Online process is not secure Online process is slow Have to submit hard copy to ofce Total N 39 14 10 6 33 2 5 10 119 Responses Percent 32.8% 11.8% 8.4% 5.0% 27.7% 1.7% 4.2% 8.4% 100.0% Percent of Cases 70.9% 25.5% 18.2% 10.9% 60.0% 3.6% 9.1% 18.2%

SECTION D: Time and Effort and Costs of Availing Services


Table 15: Services Availed in Last 90 Days (Q1D A) and Mode of service (Q2D A) Services availed in last 90 days Filing Returns Total Online 74 74 Manual 74 74 Total 148 148

Table 16: Services Availed in Last 90 Days (Q1D B) and Mode of service (Q2D B) Services availed in last 90 days Payment Total
analyzed.

Online 4 4

Manual 8 8

Total 12 12

Note: Since there arent sufcient numbers of responses for the following services: Registration, Payment and Seeking Information they have not been

Table 17: Time and cost of Filing of Returns Change (C-M) Time and Cost of Preparation of Documents for Filing of Returns Man-hours were spent collating data 2.9527 1.8074 -1.14527 N 74 74 S.E. Mode Comment: Man-hours spent in collating data is lower in the case of online users Man-hours were spent for data entry in online template N S.E. .19977 3 .12098 1 Filing Returns Manual Computerized Signicance

**

NA

1.4122 74 .13845

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Impact Assessment of Commercial Taxes Computerization 2010-Gujarat

Filing Returns Mode Total man-hours for preparation of documents N S.E. Mode Salary/wages for preparation of documents (INR) N S.E. Mode Cost of stationery for preparation of documents (INR) N S.E. Mode

Manual

Computerized .50

Change (C-M) .26689

Signicance

2.9527 74 .19977 3 70.14 74 7.441 50 38.22 74 3.821 50

3.2196 74 .19769 4 65.93 74 4.153 100 29.59 74 3.351 20

NS

-4.203

NS

-8.622

Comment: Manual users have spent signicantly more on stationery because they have to enter all details on paper. Online users, however, spent less because most details are entered on online template. Cost of access to Internet (INR) NA 18.76 N S.E. Mode Cost of Statutory Forms and other Forms including courier charges (INR) N S.E. Mode Total cost of preparation of documents (INR) N S.E. Mode 101.80 74 11.390 200 210.1486 74 16.56652 100 74 2.294 15 90.27 74 10.683 200 204.5541 74 13.33584 92 NS -5.59459 NS -11.527 NS

Time and Cost of Availing Service(Filing of Returns) From Commercial Taxes Department Number of trips 1.46 1.42 -.041 N 74 74 S.E. Mode .064 1 .084 1

Comment: There is no signicant difference between manual and online users as far as the number of trips to CTD is concerned Waiting time (Minutes) 57.2297 64.9324 7.70270 NS N 74 74 S.E. Mode Travel cost (INR) N 2.51273 60 27.30 74 7.14690 60 30.95 74 3.649 NS

322

Impact Assessment of Commercial Taxes Computerization 2010-Gujarat

Filing Returns S.E. Mode Travel time (Minutes) N S.E. Mode Number of times user had to log-in to avail online service N S.E. Mode Total time taken to complete transaction Online (Minutes) N S.E. Mode

Manual 1.639 20 52.43 74 2.553 60 NA

Computerized 2.422 20 49.73 74 4.944 60 1.77 74 .105 1

Change (C-M)

Signicance

-2.703

NS

NA

30.61 74 1.530 30

Comment: According to many online users the server was slow due to which the time taken to complete online transaction was excessive Amount spent as salary/wages on total time spent in 44.42 57.43 13.014 * availing service (INR) N 74 74 S.E. Mode 3.450 33 5.726 42

Comment: The difference seen is because online users have incurred cost on time spent for online transaction and manual submission of returns Service Charge paid to department (INR) 0 0 N S.E. Mode Amount paid as bribe (INR) N S.E. Mode Total payment made (Rs) N S.E. Mode Time in availing service through Manual process (Hours) N S.E. 74 0 0 43.24 74 11.99 0 43.2432 74 11.99023 0 5.2218 74 3.88696 74 0 0 25.6757 74 8.34529 0 25.68 74 8.345 0 5.1239 74 3.58727 -.09784 NS -17.568 NS -17.56757 NS

323

Impact Assessment of Commercial Taxes Computerization 2010-Gujarat

Filing Returns Mode Time in availing service through Online process (Hours) N S.E. Mode Total elapsed time in availing service (Hours) N S.E. Mode

Manual 1 .0000 74 .00000 0 5.2215 74 3.88697 1

Computerized 1 1.1147 74 .44704 .50 6.2508 74 3.59557 1.50

Change (C-M)

Signicance

1.11473

1.02932

NS

Comment: There is no signicant difference between online and manual modes in terms of total elapsed time in availing service

OTHER TABLES: TIME AND COST OF FILING RETURNS


Table 18: Number of trips Number of trips need to make for the service 1 2 3 4 5 Total Treatment (online) 49 66.2% 22 29.7% 1 1.4% 1 1.4% 1 1.4% 74 100.0% Comparison (manual) 42 56.8% 30 40.5% 2 2.7% 0 .0% 0 .0% 74 100.0% Total 91 61.5% 52 35.1% 3 2.0% 1 .7% 1 .7% 148 100.0%

324

Impact Assessment of Commercial Taxes Computerization 2010-Gujarat

Table 19: Reasons for making more than one trip Reasons to make more that one trip It was required -as per CTD procedure To follow up, a there was delay on the part of CTD to provide service Could not avail service in previous visit as there was a long queue Concerned functionary was not available Counter was not operational Total Treatment (online) 0 .0% 18 72.0% 1 4.0% 5 20.0% 1 4.0% 25 100.0% Comparison (manual) 3 9.4% 23 71.9% 1 3.1% 5 15.6% 0 .0% 32 100.0% 3 5.3% 41 71.9% 2 3.5% 10 17.5% 1 1.8% 57 100.0% Total

Table 20: Waiting time for availing service Had to wait excessively for availing service in any of the trips Yes No Total 24 32.4% 50 67.6% 74 100.0% Treatment (online) Comparison (manual) 23 31.1% 51 68.9% 74 100.0% Total 47 31.8% 101 68.2% 148 100.0%

Table 21: Excessive waiting time for availing service Reasons for excessive wait Treatment (online) 4 16.7% 14 58.3% 2 8.3% 1 4.2% 3 12.5% 24 100.0% Comparison (manual) 11 47.8% 9 39.1% 3 13.0% 0 .0% 0 .0% 23 100.0% Total 15 31.9% 23 48.9% 5 10.6% 1 2.1% 3 6.4% 47 100.0%

Long queue/ Too many applicants at ofce Ofcials of CTD are inefcient (slow in processing) Processes are too complex & take lot of time to complete Some windows/counters were not operational Computer/network connectivity failure Total

325

Impact Assessment of Commercial Taxes Computerization 2010-Gujarat

Table 22: Number of times user had to log-in for availing service Number of times log-in to avail online service 1 2 3 4 5 Total Treatment (online) 35 47.3% 25 33.8% 11 14.9% 2 2.7% 1 1.4% 74 100.0% Total 35 47.3% 25 33.8% 11 14.9% 2 2.7% 1 1.4% 74 100.0%

Table 23: Number of times user had to log-in for availing service Reasons to log-in more than once Service was not available as server was slow Total Treatment (online) 39 100.0% 39 100.0% Total 39 100.0% 39 100.0%

Table 24: Time taken to complete online transaction Time taken to complete online transaction was excessive Yes No Total Treatment (online) 36 48.6% 38 51.4% 74 100.0% Total 36 48.6% 38 51.4% 74 100.0%

Table 25: Time taken to complete online transaction Reasons for excessive time Server is slow Processes are complex and time consuming Total Treatment (online) 33 91.7% 3 8.3% 36 100.0% Total 33 91.7% 3 8.3% 36 100.0%

326

Impact Assessment of Commercial Taxes Computerization 2010-Gujarat

Table 26: Bribe paid Paid a bribe directly to ofcials Treatment (online) 9 12.2% 65 87.8% 74 100.0% Comparison (manual) 13 17.6% 61 82.4% 74 100.0% Total 22 14.9% 126 85.1% 148 100.0%

Yes No Total

Table 27: Purpose of bribes Purpose of the bribe Treatment (online) 1 11.1% 1 11.1% 7 77.8% 9 100.0% Comparison (manual) 4 30.8% 3 23.1% 6 46.2% 13 100.0% Total 5 22.7% 4 18.2% 13 59.1% 22 100.0%

To avoid audit assessment by CTD To inuence functionaries to manipulate records in our favor To expedite the process Total

SECTION E: Overall Assessment


Table 28: Overall Assessment Overall Assessment Time and effort in ling returns N S.E. Cost incurred in ling returns N S.E. Design and layout of forms N S.E. Time and effort in tax payment N S.E. Security of monetary transactions N S.E. Computerized 3.86 74 .128 3.81 74 .112 3.30 66 .122 3.61 36 .151 3.44 39 .163 Manual 3.11 74 .095 3.18 73 .109 2.97 34 .161 3.53 49 .093 3.45 47 .157 -.011 NS .080 NS .332 NS .633 ** Change (C-M) .757 Signicance **

327

Impact Assessment of Commercial Taxes Computerization 2010-Gujarat

Overall Assessment Overall quality of service N S.E. Overall quality of governance N S.E. Overall experience of availing service from CTD N S.E. Accuracy of transactions N S.E. Condentiality and security of data N S.E. Time and effort in procuring forms N S.E. Time and effort in accessing information N S.E. Predictability of outcome N S.E Clarity and simplicity of processes and procedures N S.E Accountability of Ofcials N S.E. Transparency in CTD N S.E. Knowledge of Ofcials N S.E. Ability to inuence policies, rules and procedures N S.E. Level of corruption N

Computerized 3.92 74 .098 3.56 73 .109 3.78 74 .100 3.96 74 .135 4.31 74 .102 2.69 74 .141 3.95 74 .122 3.72 74 .111 3.53 74 .121 3.03 74 .133 3.76 74 .100 2.70 74 .127 3.53 73 .119 2.26 74

Manual 3.41 74 .090 3.14 73 .106 3.28 74 .101 3.62 74 .144 3.70 74 .133 3.05 74 .118 2.96 74 .125 3.31 74 .112 3.55 74 .140 3.18 74 .125 3.26 74 .114 3.42 74 .152 3.38 74 .101 2.39 74

Change (C-M) .514

Signicance **

.425

**

.500

**

.338

.608

**

-.365

**

.986

**

.405

**

-.027

NS

-.149

NS

.500

**

-.716

**

.156

NS

-.135

NS

328

Impact Assessment of Commercial Taxes Computerization 2010-Gujarat

Overall Assessment S.E. Courtesy and helpfulness of Ofcials N S.E. Problem resolution N S.E. Complaint handling mechanism N S.E. Convenience of working hours N S.E. Queuing system at CTD Ofce N S.E. Convenience of location of ofce N S.E. Adherence to Citizen Charter N S.E. Durability and legibility of certicates/receipts N S.E.

Computerized .120 3.34 74 .132 2.69 74 .125 2.96 73 .140 3.41 74 .120 3.51 73 .151 3.88 74 .146 3.14 74 .147 3.49 74 .140

Manual .133 3.04 74 .145 2.99 74 .121 3.04 74 .131 3.40 73 .101 2.97 74 .141 3.95 74 .132 3.01 73 .143 3.32 74 .131

Change (C-M) .297

Signicance

NS

-.297

-.082

NS

.008

NS

.534

**

-.068

NS

.121

NS

.162

NS

Composite Score
Table 29: Composite Score Respondents who ConsidAverage of Individuered Factor to be Among al Scores Three Most Important Column No. Factor Number Percentage (Column a/ Total of Column a) .7% 2.7% 1.1% Computerized Manual Difference (Column c Column d) .757 .633 .332 a b c d Improvement e F Weighted Score (Column e X Column b) 0.005299 0.017091 0.003652

Time and effort in ling returns Cost incurred in ling returns Design and layout of forms

3 12 5

3.86 3.81 3.30

3.11 3.18 2.97

329

Impact Assessment of Commercial Taxes Computerization 2010-Gujarat

Respondents who Consid- Average of Individuered Factor to be Among al Scores Three Most Important Column No. Factor a Number b Percentage (Column a/ Total of Column a) .5% .7% 2.3% 1.8% 1.1% 1.6% 3.2% 10.1% 5.6% .2% 1.6% 10.1% .7% 11.9% 1.1% 18.7% 2.9% 9.7% 5.4% 2.3% 1.8% .2% 1.4% .7% 100.0% c Computerized d Manual

Improvement

e Difference (Column c Column d) .080 -.011 .514 .425 .500 .338 .608 -.365 .986 .405 -.027 -.149 .500 -.716 .156 -.135 .297 -.297 -.082 .008 .534 -.068 .121 .162

F Weighted Score (Column e X Column b) 0.0004 -0.000077 0.011822 0.00765 0.0055 0.005408 0.019456 -0.036865 0.055216 0.00081 -0.000432 -0.015049 0.0035 -0.085204 0.001716 -0.025245 0.008613 -0.028809 -0.004428 0.000184 0.009612 -0.000136 0.001694 0.001134 -0.037488

Time and effort in tax payment Security of monetary transactions Overall quality of service Overall quality of governance Overall experience of availing service from CTD Accuracy of transactions Condentiality and security of data Time and effort in procuring forms Time and effort in accessing information Predictability of outcome Clarity and simplicity of processes and procedures Accountability of Ofcials Transparency in CTD Knowledge of Ofcials Ability to inuence policies, rules and procedures through feedback Level of corruption Courtesy and helpfulness of Ofcials Problem resolution Complaint handling mechanism Convenience of working hours Queuing system at CTD Ofce Convenience of location of ofce Adherence to Citizen Charter Durability and legibility of certicates/receipts Total (Sum of column)

2 3 10 8 5 7 14 45 25 1 7 45 3 53 5 83 13 43 24 10 8 1 6 3 444

3.61 3.44 3.92 3.56 3.78 3.96 4.31 2.69 3.95 3.72 3.53 3.03 3.76 2.70 3.53 2.26 3.34 2.69 2.96 3.41 3.51 3.88 3.14 3.49

3.53 3.45 3.41 3.14 3.28 3.62 3.70 3.05 2.96 3.31 3.55 3.18 3.26 3.42 3.38 2.39 3.04 2.99 3.04 3.40 2.97 3.95 3.01 3.32

330

Impact Assessment of Commercial Taxes Computerization 2010-Gujarat

SECTION F: Suggestions
Table 30: Suggestions for improving online services Suggestions to improve e services Eliminate practice of submission of hard copy of CTD Server speed should be increased Tax consultants should be allowed to make E-payment on behalf of their clients through Consultants Internet Banking A/C Maintenance of website should not be done during ofce hour CTD ofcials should be given adequate training, so that they can handle queries on online services efciently Involve more banks in e-payment Provide templates (w.r.t. returns) that can perform data verication ofine Changes in processes/templates should be immediately communicated Total Responses N Percent 141 26.6% 107 20.2% 9 12 71 91 18 82 531 1.7% 2.3% 13.4% 17.1% 3.4% 15.4% 100.0% Percent of Cases 95.3% 72.3% 6.1% 8.1% 48.0% 61.5% 12.2% 55.4%

Table 31: Suggestions for increasing usage of online services Suggestions to increase use of e service Awareness campaigns on online services for dealers Establishment of common service centres to facilitate e-service to all Online processes should be made much more user friendly and simple Total Responses N Percent 139 45.3% 83 85 307 27.0% 27.7% 100.0% Percent of Cases 93.9% 56.1% 57.4%

331

Impact Assessment of Commercial Taxes Computerization 2010-Gujarat

Annexure K

Gujarat: CTPs Using Mandatory Online Services


SECTION A: Identication Details
Table 1: Division wise frequency Division Range 4 5 6 Total 15 16 17 18 Total 19 21 Total 22 23 24 25 Total N 9 8 1 18 5 4 3 4 16 4 5 9 8 7 8 8 31

Ahmedabad

Surat

Bhavnagar

Rajkot

Table 2: Location wise frequency Location Rural Urban Total Frequency 1 73 74 Percent 1.4 98.6 100.0

SECTION B: Dealer Prole


Table 3: Qualication of CTP Educational qualication of Tax Consultant CA LLB B.Com Total Frequency 14 58 2 74 Percent 18.9 78.4 2.7 100.0

332

Impact Assessment of Commercial Taxes Computerization 2010-Gujarat

Table 4: Experience of CTP Experience as Tax Consultant 1-5 6-10 11-15 16-20 21-25 Total Frequency 14 12 13 12 9 60 Percent 23.3 20.0 21.7 20.0 15.0 100.0

Table 5: Number of staff involved in activities w.r.t Commercial Taxes Number of staff in the organization involved in activities related to Commercial Taxes 1 2 3 4 5 Total Frequency 16 23 15 10 10 74 Percent 21.6 31.1 20.3 13.5 13.7 100.0

Table 6: Computer literacy of CTP Tax Consultant is computer literate Yes Frequency 74 Percent 100.0

Table 7: Experience of CTP in using online services Tax Consultant used any online e-Gov. service Yes Frequency 74 Percent 100.0

SECTION C: Awareness and Usage of Online Services


Table 8: Source of awareness on online services First source of awareness about e-services Newspaper Television Other CTPs Commercial tax department ofcial Total Frequency 8 2 4 60 74 Percent 10.8 2.7 5.4 81.1 100.0

333

Impact Assessment of Commercial Taxes Computerization 2010-Gujarat

Table 9: Awareness on online services Online services provided by CTD Application for Registration Application for issue of forms Application for refund Filing Returns Payment of Taxes Information Dissemination Total N 50 74 63 74 69 72 402 Responses Percent 12.4% 18.4% 15.7% 18.4% 17.2% 17.9% 100.0% Percent of Cases 67.6% 100% 85.1% 100.0% 93.2% 97.3%

Table 10: Reasons for using online services Reasons for using e-services Online process is faster Online process is more secure Fewer errors in online process Fewer visits to commercial taxes department Online process is more transparent It is mandatory Total N 48 34 11 53 10 42 198 Responses Percent 24.2% 17.2% 5.6% 26.8% 5.1% 21.2% 100.0% Percent of Cases 64.9% 45.9% 14.9% 71.6% 13.5% 56.8%

SECTION D: Time and Effort and Costs of Availing Services


Table 11: Time and cost of availing service Obtaining Statutory Forms Manual Computerized Change (C-M) Signicance Time and Cost of Availing Service From Commercial Taxes Department Number of trips N S.E. Mode 1.51 74 .093 .00 74 .000 -1.514 **

1 0 Comment: None of the online users visited CTD to obtain statutory forms. Clearly, online service has helped dealers in terms of reducing trips to CTD. 61.2162 NA Waiting time (Minutes) N S.E. Mode Travel cost (INR) N S.E. 74 3.50835 60 28.72 74 2.367 NA

334

Impact Assessment of Commercial Taxes Computerization 2010-Gujarat

Obtaining Statutory Forms Mode Travel time (Minutes) N S.E. Mode Number of times user had to log-in to avail online service N S.E. Mode Total time taken to complete transaction Online (Minutes) N S.E. Mode Amount spent as salary/wages on total time spent in availing service (INR) N S.E. Mode

Manual 20 49.05 74 2.627 60 NA

Computerized NA

Change (C-M) Signicance

1.77 74 .110 1

NA

27.97 74 2.103 30

45.62 74 6.881

13.64 74 3.437

-31.986

**

33 6 Comment: The difference is because online users did not have to visit CTD to obtain forms thus saving salary/wages for waiting time and travel time Service Charge paid to department (INR) 0 0 N 74 74 S.E. Mode Amount paid as bribe (INR) N S.E. Mode 0 0 72.2973 74 18.83161 0 0 .00 74 .000 -72.2973 **

0 0 Comment: Online users do not have to approach CTD ofcials for statutory forms. Therefore, there has been signicant reduction in bribes for this service. Total payment made (Rs) 72.30 0 -72.297 ** N 74 74 S.E. Mode 18.832 0 0 0 Comment: As there is no service charge, the only payment made is bribes. Total elapsed time in availing service (Hours) N S.E. Mode 147.11 74 10.326 375.95 74 58.129 228.838 **

120 48 Comment: The data shows that there has been a signicant increase in time taken for availing service. While in the manual service it used to take about 6 days to obtain the forms, in the online mode it takes about 15 days

335

Impact Assessment of Commercial Taxes Computerization 2010-Gujarat

OTHER TABLES: Time And Effort And Costs Of Availing Service A. Online Service
Table 12: Number of trips Number of trips 0 Frequency 74 Table 13: Number of times user had to log-in for availing service Number of times og-in to avail online service 1 2 3 4 5 Total Frequency 38 19 14 2 1 74 Percent 51.4 25.7 18.9 2.7 1.4 100.0 Percent 100.0

Table 14: Number of times user had to log-in for availing service Reasons to log-in more than once Service was not available as server was slow Templates had changed, therefore it had to be downloaded rst Total Frequency 35 1 36 Valid Percent 97.2 2.8 100.0

Table 15: Time taken to complete online transaction Time taken to complete online transaction was excessive Yes No Total Frequency 35 39 74 Percent 47.3 52.7 100.0

Table 16: Time taken to complete online transaction Reasons for excessive time in online transaction Server is slow Processes are complex and time consuming Errors occur while uploading template Total Table 17: Bribe paid Paid a bribe directly to Ofcials Yes No Total Frequency 2 72 74 Percent 2.7 97.3 100.0 Frequency 31 3 1 35 Valid Percent 88.6 8.6 2.9 100.0

336

Impact Assessment of Commercial Taxes Computerization 2010-Gujarat

Table 18: Purpose of bribe Purpose of bribe To avoid audit assessment by CTD To expedite the process Total N 1 2 3 Responses Percent 33.3% 66.7% 100.0% Percent of Cases 50.0% 100.0%

B. Manual Service
Table 19: Number of trips Number of trips need to make to CTD 1 2 3 5 Total Table 20: More number of trips Reasons to make more than one trip It was required - as per CTD procedure To follow up, as there was delay on the part of CTD to provide service Could not avail service in previous visit as there was a long queue Concerned functionary was not available Counter was not operational Total Responses 5 26 2 5 2 40 Percent of Cases 12.5% 65.0% 5.0% 12.5% 5.0% 100.0% N 16.7% 86.7% 6.7% 16.7% 6.7% Frequency 44 26 2 2 74 Percent 59.5 35.1 2.7 2.7 100.0

Table 21: Waiting time for availing service Had to wait excessively for availing service in any of the trips Yes No Total Frequency 18 56 74 Percent 24.3 75.7 100.0

Table 22: Excessive waiting time for availing service Reasons for excessive wait Long queue Ofcials of CTD are inefcient (slow in processing) Too many applicants at ofce Badly managed queue Power breakdown Computer/network connectivity failure Total Responses N Percent 4 17.4% 9 3 3 3 1 23 39.1% 13.0% 13.0% 13.0% 4.3% 100.0% Percent of Cases 22.2% 50.0% 16.7% 16.7% 16.7% 5.6%

337

Impact Assessment of Commercial Taxes Computerization 2010-Gujarat

Table 23: Bribe paid Paid a bribe directly to Ofcials Yes No Total Frequency 20 54 74 Percent 27.0 73.0 100.0

Table 24: Purpose of bribes Purpose of bribe To inuence functionaries to manipulate records in our favor To expedite the process Total N 4 19 23 Responses Percent 17.4% 82.6% 100.0% Percent of Cases 20.0% 95.0%

SECTION E: Overall Assessment


Table 25: Overall Assessment Overall Assessment Cost of availing service N S.E. Time and effort in availing service N S.E. Overall experience of availing service from CTD N S.E. Overall quality of governance N S.E. Overall quality of service N S.E. Durability and legibility of statutory forms N S.E. Clarity and simplicity of processes and procedures N S.E. Accountability of Ofcials Computerized 4.14 74 .113 3.81 74 .118 3.95 74 .088 3.91 74 .091 4.12 74 .109 3.49 74 .113 3.35 74 .116 3.31 Manual 2.91 74 .093 3.07 74 .113 2.97 74 .096 2.88 74 .104 2.86 74 .102 3.62 74 .127 3.45 74 .150 2.95 .365 ** -.095 NS -.135 NS 1.257 ** 1.027 ** .973 ** .743 ** Change (C-M) 1.230 Signicance **

338

Impact Assessment of Commercial Taxes Computerization 2010-Gujarat

Overall Assessment N S.E. Transparency in CTD N S.E. Knowledge of Ofcials N S.E. Predictability of outcome N S.E. Complaint handling mechanism & problem resolution N S.E. Ability to inuence policies, rules and procedures N S.E Convenience of location of center/ofce N S.E Courtesy and helpfulness of Ofcials N S.E. Convenience of working hours N S.E. Queuing system at CTD Ofce N S.E. Level of corruption N S.E. Adherence to Citizen Charter N S.E. Dependence on Ofcials N S.E.

Computerized 74 .129 3.85 74 .096 2.92 74 .136 3.91 74 .107 3.30 74 .150 3.77 73 .106 4.21 73 .126 3.39 74 .127 3.55 74 .111 3.65 74 .137 2.09 74 .114 3.51 74 .125 3.57 74 .126

Manual 74 .118 2.99 74 .097 3.39 74 .157 2.74 74 .094 2.72 74 .122 3.07 73 .116 3.93 73 .142 2.84 74 .117 2.91 74 .102 2.35 74 .101 2.04 74 .113 2.80 74 .133 3.14 74 .182

Change (C-M)

Signicance

.865

**

-.473

**

1.162

**

.581

**

.699

**

.274

**

.554

**

.649

**

1.297

**

.054

NS

.716

**

.432

**

339

Impact Assessment of Commercial Taxes Computerization 2010-Gujarat

Composite Score
Table 26: Composite Score Respondents who Average of IndividuConsidered Factor to al Scores be Among Three Most Important Column No. Factor a Number b c d Manual Improvement

Percentage Comput(Column a/ erized Total of Column a) 2.3% 4.1% 2.3% 1.4% 1.8% 6.3% .9% 6.3% 1.4% 22.1% 1.8% 10.8% 4.14 3.81 3.95 3.91 4.12 3.49 3.35 3.31 3.85 2.92 3.91 3.30

Difference Weighted (Column c Score (Column e Column X Column b) d) 1.230 .743 .973 1.027 1.257 -.135 -.095 .365 .865 -.473 1.162 .581 0.02829 0.030463 0.022379 0.014378 0.022626 -0.00851 -0.00086 0.022995 0.01211 -0.10453 0.020916 0.062748

Cost of availing service Time and effort in availing service Overall experience of availing service from CTD Overall quality of governance Overall quality of service Durability and legibility of forms Clarity and simplicity of processes and procedures Accountability of Ofcials Transparency in CTD Knowledge of Ofcials Predictability of outcome Complaint handling mechanism & problem resolution Ability to inuence policies, rules and procedures through feedback Convenience of location of center/ofce (accessibility and ambience) Courtesy and helpfulness of Ofcials Convenience of working hours Queuing system at CTD Ofce Level of corruption Adherence to Citizen Charter Dependence on Ofcials Total (Sum of column)

5 9 5 3 4 14 2 14 3 49 4 24

2.91 3.07 2.97 2.88 2.86 3.62 3.45 2.95 2.99 3.39 2.74 2.72

.9%

3.77

3.07

.699

0.006291

2 15 1 4 40 3 19 222

.9% 6.8% .5% 1.8% 18.0% 1.4% 8.6% 100.0%

4.21 3.39 3.55 3.65 2.09 3.51 3.57

3.93 2.84 2.91 2.35 2.04 2.80 3.14

.274 .554 .649 1.297 .054 .716 .432

0.002466 0.037672 0.003245 0.023346 0.00972 0.010024 0.037152 0.252928

340

Impact Assessment of Commercial Taxes Computerization 2010-Gujarat

SECTION F: Suggestions
Table 27: Suggestions for improving online services Suggestions to improve e-services N Eliminate practice of submission of hard copy of CTD Server speed should be increased CTPs should be allowed to make E-payment on behalf of clients Maintenance of website should not be done during ofce hour CTD ofcials should be given adequate training, so that the Involve more banks in e-payment Provide templates (w.r.t. returns) that can perform data verication ofine Changes in processes/templates should be immediately communicated In case of discrepancies in data/documents submitted by dealers, CTD should intimate them at the earliest Total 70 58 3 6 29 58 9 35 38 306 Responses Percent 22.9% 19.0% 1.0% 2.0% 9.5% 19.0% 2.9% 11.4% 12.4% 100.0% Percent of Cases 94.6% 78.4% 4.1% 8.1% 39.2% 78.4% 12.2% 47.3% 51.4%

Table 28: Suggestions for increasing usage of online services Suggestions to increase use of e-service Awareness campaigns on online services for dealers Establishment of common service centres to facilitate e-service to all Online processes should be made much more user friendly and simple Total Responses N Percent 72 46 42 160 45.0% 28.7% 26.3% 100.0% Percent of Cases 97.3% 62.2% 56.8%

341

Rajasthan Impact Assessment of Commercial Taxes Computerization 2010

Acknowledgments
We express our sincere thanks to the Department of Information Technology, Government of India for giving us the opportunity to conduct the assessment. For helping us conceptualize this study, we express our foremost thanks to Mr. R. Chandrashekhar, Secretary, Department of Information Technology & Prof. Subhash Bhatnagar, Adjunct Professor, IIM, Ahmedabad. We are extremely indebted to Mr. S. P Singh, Senior Director, DIT and Ms. Radha Chauhan, Principal Consultant, DIT, for entrusting us with this study. Mr. P.K. Pujari, Commissioner, Commercial Taxes Department, Government of Gujarat, has facilitated the survey at every stage many thanks to him. Ms. Vineeta Dixit, Principal Consultant, National e-Governance Division, DIT Ms. Sulakshana Bhattacharya, DIT, Ms. Shiffy Thankam Varkey, DIT and Ms. Nupur Singh, In-charge, Center for Electronic Governance, IIMA provided us with constant help and support. We express our sincere gratitude to them. Our heart felt gratitude to all Field Supervisors and Investigators who carried out the survey.

Director, RDI

345

Table of Contents

1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0

Introduction .........................................................................................................................349 Prole of Respondents ........................................................................................................352 Awareness and Usage of Online Services ...........................................................................352 Time, Effort and Cost of Availing Services ........................................................................353 Overall Assessment .............................................................................................................356 Suggestions of Respondents ...............................................................................................368 Opinion of Service Providers ..............................................................................................369 Recommendations for Improving Online Services .............................................................369

Annexure A: Research Design & Sampling Methodology ...........................................................371 Annexure B: Listing Schedule ......................................................................................................378 Annexure C: Interview Schedule for Dealers (Optional) ..............................................................380 Annexure D: Interview Schedule for Dealers (Mandatory) ..........................................................387 Annexure E: Interview Schedule for CTPs (Optional) .................................................................392 Annexure F: Interview Schedule for CTPs (Mandatory) .............................................................399 Annexure G: Field Work ...............................................................................................................404 Annexure H: Tables - Dealers Using Optional Online Services ...................................................405 Annexure I: Tables - Dealers Using Mandatory Online Services ................................................424

Annexure J: Tables - CTPs Using Optional Online Services.......................................................434 Annexure K: Tables - CTPs Using Mandatory Online Services ...................................................450

346

Abbreviations and Acronyms


DIT Department of Information Technology

IIMA Indian Institute of Management, Ahmedabad CTP Commercial Taxes Practitioner

CTD Commercial Taxes Department

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Impact Assessment of Commercial Taxes Computerization 2010-Rajasthan

Executive Summary
The Commercial Taxes Department of Rajasthan has introduced some online services for dealers. Major services include e-ling of returns and issue of VAT forms (online). The primary objective of this study was to assess the impact of online services on end users (dealers and commercial taxes practitioners). In order to gather information from end users, a survey was undertaken. Four different interview schedules were used in the survey, which covered 805 users in four Divisions of Rajasthan. This report summarizes major ndings of this survey. Awareness and Usage of Online Services Data obtained from Commercial Taxes Department, Rajasthan showed that the number of users of online services is limited. Among dealers, lack of awareness about e-services, is one of the major reasons for this - 47.6% of comparison group (manual mode users) were not aware of online services. However, among CTPs awareness is not an issue - as 89.6% of comparison group CTPs were aware of online services. Time, Effort and Cost of Availing Service: Filing Returns Preparation of documents: With respect to preparation of documents, online service seems to have had no positive impact because the total cost of preparation of documents is signicantly higher in the case of online users. This is because online users have to enter data in online template, which is an activity that involves signicant time and cost. Submitting returns to CTD: Both manual and online users have to make at least one trip to CTD ofce - manual users to submit their returns and online users to submit hard copy of e-returns. Online service, therefore, has not been successful in terms of eliminating visits to ofce. There is a need to make this service (e-returns) end-to-end by eliminating the need to visit ofce (for submission of hard copies of returns). Moreover, online templates should be made much more user friendly this could reduce the time and cost involved in preparation of documents. Time, Effort and Cost of Availing Service: Obtaining VAT Forms This online service has had signicant impact it has eliminated trips to ofce for obtaining VAT forms (as it is available online), eliminated bribes (as there is no need for user to meet ofcials) and signicantly reduced total time in availing service.

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Impact Assessment of Commercial Taxes Computerization 2010-Rajasthan

1.0 Introduction
The Department of Information Technology (DIT), Government of India, is mandated to periodically assess impact of Mission Mode Projects (MMPs) on end users. In line with this, the rst round of assessment was carried out in 2008 during which some Central and State MMPs were assessed. The framework for this study was developed by the Centre for Electronic Governance (CEG) of IIMA. Eleven empanelled Market Research agencies carried out surveys among end users across India, analyzed data and presented reports. In the current round of assessment (2nd round) RDI has been entrusted with impact assessment of commercial taxes e-governance projects in ve States viz. Rajasthan, Chhattisgarh, Gujarat, Andhra Pradesh and Tamil Nadu. This report will discuss, in detail, impact of Commercial Taxes e-Governance Projects in Rajasthan. The broad framework for this study has been developed by IIMA. RDI was primarily responsible for conducting pilot study, developing research design and sampling methodology, modifying interview schedules (that was developed by IIMA and used in the 1st round), survey, analysis and preparation of State level reports. 1.1 Objectives of the study Commercial Taxes Department (CTD) of Rajasthan has introduced many online services1 for dealers including ling of returns, tax payment and issue of VAT forms. This study was commissioned primarily to assess the impact of online services on end users. The interview schedule designed for the study has ve major sections, each with specic objectives: 1. User Prole: To form a prole of end users - dealers and Commercial Taxes Practitioners (CTPs). 2. Awareness and Usage of Online Services: To understand the extent of awareness and usage of various online services. In addition, this section will also give information as to why certain users prefer online services over manual services and vice versa. 3. Time, Effort and Cost of Availing Services: To assess the impact of online services on factors including number of trips for availing service, waiting time, salary/wages spent for availing service, total payment made and total elapsed time in availing service. 4. Overall Assessment: Perception of users regarding certain key attributes of the service delivery was captured in this section. Attributes included overall quality of service and overall quality of governance. 5. Suggestions: In this section we have captured suggestions of users on improving online services and increasing usage of online services. ____________
1

Electronic service delivery launch date: January 2008

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Impact Assessment of Commercial Taxes Computerization 2010-Rajasthan

1.2 Research design and sampling methodology


Table 1: Percentage of Online and Manual Users (1st April 08 to 31st May 09) Service Registration Filing of returns Payment Communication/Information Dissemination* Refund* E-submission of declaration form* Issue of VAT Forms2 VAT (%) Manual Online 99.95% 0.05% 99.94% 0.06% 99.33% 0.67% 95% 5% 95% 5% 90% 10% 0 100% CST (%) Manual Online 99.98% 0.02% 99.98% 1.05% 97.50% 2.50% 95% 5% 95% 5% 90% 10% 100% 0

*Approximate gures based on perception of CTD Ofcials actual gures were not available Source: Commercial Taxes Department, Gujarat

There were several factors that had to be taken in to account while developing research design and sampling methodology for this study: 1. There were about seven online services in Rajasthan in June 2009. Table 1 give details of online services in the State and service wise percentage of users 2. All online services, except issue of VAT forms, were voluntary3 dealers could either use manual mode or online mode according to their convenience. VAT forms have to be downloaded form website of the CTD (they cannot be obtained manually from Ofce of CTD) this was therefore considered as a mandatory service 3. During pilot study we understood that many dealers in Rajasthan relied (either partially or fully) on Commercial Taxes Practitioners (CTPs) for availing services including registration, ling returns and tax payment. End users of online services would therefore include Dealers and CTPs (who were availing service on behalf of their clients) and we had to cover both categories in this study. After factoring in the above mentioned points, two types of Quasi-Experimental Design were adopted for the study: I. Nonequivalent Groups Design, with treatment and comparison groups for Optional Online Services II. Proxy Pretest Design for Mandatory Online Service Issue of VAT Forms Multi Stage Random Sampling has been used in this study. The sampling methodology factored
__________ 2 3

All forms of VAT are available online they can only be obtained online. However, in case of CST, forms are not available online Online ling of return has been made mandatory for some large dealers. However, at the time of the survey, there were very few mandatory dealers and therefore online ling of returns was considered as an optional service

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in activity level and geographical location for selection of Zones, Circles and wards. Please refer Annexure A for details on research design and sampling methodology. 1.3 Interview schedules As there were two different research designs, two different interview schedules too had to be developed one for optional online services and the other for mandatory online services. Apart from this, separate interview schedules for dealers and CTPs were also designed. Thus altogether four different interview schedules were used in this study: 1. 2. 3. 4. Interview schedule for dealers: optional online services Interview schedule for dealers: mandatory online services Interview schedule for CTPs: optional online services Interview schedule for CTPs: mandatory online services Interview schedules are given in Annexure C - F. 1.4 Listing and Field work To select dealers and CTPs for this study and to classify them as respondents for optional online service (treatment/control group) or mandatory online service, we needed several key-information. Listing exercise was carried out among dealers and CTPs in selected wards to gather following information: 1. Services availed: Optional services used in last three months (90 days) and mode of service used (online/manual) this is needed to classify dealers and CTPs as control or treatment group. Mandatory service availed and mode of service to see if the dealer/CTP can be a respondent for mandatory service 2. Whether processes w.r.t services used were done in-house or CTPs assistance was taken (partially/ fully). If the dealer is completely relying on CTP there is no point in interviewing the dealer as he/ she will not be able to answer most of the questions in the interview schedule. In such cases the CTP was interviewed instead of dealer. 3. Address of CTPs - in case CTPs assistance was sought Field work (survey) in Rajasthan was carried out during August and September 2009. Listing schedule used for this study is given in Annexure B and details regarding eld work are given in Annexure G. 1.5 Outline of Report The report has ve sections User Prole, Awareness and Usage of Online Services, Time, Effort and Cost of Availing Services, Overall Assessment and Suggestions each corresponding to a section of the interview schedule:

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Impact Assessment of Commercial Taxes Computerization 2010-Rajasthan

2.0 Prole of Respondents


The survey covered 805 respondents (Dealers and Commercial Taxes Practitioners) in four Divisions of Rajasthan. The table below gives details of users covered. Detailed (questionnaire wise) tables are given in Annexure H - K.
Table 2: Users covered Users Of Optional Online Services Dealers Commercial Taxes Practitioners Dealers Commercial Taxes Practitioners 503 [Treatment/Online:253 & Comparison/Manual:250] 153 [Treatment/Online:76 & Comparison/Manual: 77] Users Of Mandatory Online Services 97 52

3.0 Awareness and Usage of Online Services


Data obtained from Commercial Taxes Department, Rajasthan showed that the number of users of online services is limited (Please refer Table 1). Therefore one of the objectives of this study was to nd out the reasons for low usage of online services. 3.1 Reasons for low usage of Online Services Dealers: Among the comparison group (manual mode users) 47.6% were not aware of online services this highlights the need for awareness generation among dealers. Those dealers who were aware (52.4%) avoided using online services because of various reasons major ones are given below: Do not have skills to use online services Do not have access to hardware/software Online process is prone to errors Have to submit hard copy to ofce

CTPs: Unlike Dealers, most comparison group CTPs (89.6%) were aware of online services. However, these CTPs (who were aware of e-services) chose not to use online services because of the following major reasons: Do not have skills to use online services Online process is prone to errors Online process is slow Have to submit hard copy to CTD

3.2 Major reasons for using Online Services Major reasons given by Dealers & CTPs for using online services are:

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Impact Assessment of Commercial Taxes Computerization 2010-Rajasthan

Online process is faster Online process is more secure Fewer errors in online process Fewer visits to commercial taxes department Online process is more transparent

Detailed (questionnaire wise) tables are given in Annexure H - K.

4.0 Time, Effort and Cost of Availing Services


In this section we shall analyze impact of online services on time, effort and cost incurred by users. Two services, Filing of returns and obtaining VAT forms, have been analyzed in this section. Other services could not be analyzed as there werent sufcient responses on them it may be noted that services like registration and refunds are not frequently used services. As mentioned in section 1.0 there are two different types of services optional and mandatory and two categories of users dealers and CTPs w.r.t services of CTD. Therefore each of them will be discussed separately in this section. 4.1 Filing Returns (Optional Online Service) Dealers registered with the CTD are required to le returns periodically, monthly/bi-monthly/quarterly/annually depending on turnover, in a prescribed format. Filing Returns has two major components: I. Preparation of documents: Time and cost in compiling data, preparation of documents and data entry in online template. II. Submitting returns to CTD: Time and cost in submitting return documents to CTD and getting receipt of submission Most dealers (manual and online) take help from CTPs for either one or both components mentioned above, mainly because: dealers lack sufcient knowledge to prepare returns and/or they want to ensure that the returns submitted are free of errors. There are several differences between manual and online mode of ling of returns. Major differences are given below:

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Impact Assessment of Commercial Taxes Computerization 2010-Rajasthan

Table 3: Differences between manual and online mode of ling of returns Manual Online

1. Return documents are prepared manually 1. Dealer downloads templates for Return Filling from CTD website this is a one (using various forms such as VAT forms, time activity, unless changes in template are CST forms) in the format specied by the brought about by the CTD department 2. Dealer submits the original return documents 2. Dealer compiles data as per the templates some dealers take a print out of the template to CTD. After verication of return documents and ll it up manually by the clerk/CTI, the dealer receives a receipt of submission 3. Data is entered in the template 3. An ofce copy of the return documents is 4. Template is uploaded and dealer receives an maintained by the Dealer acknowledgement from CTD 4. There is no service charge for ling returns 5. Dealer has to submit a hard copy of the return (print out of template) to CTO Ofce and receive a receipt of submission - receipt is given without verication as the dealer has already submitted return online 6. There is no service charge for ling returns

4.1.1 Time and Cost of Preparation of Documents for Filing of Returns Respondents were asked to provide details on time, effort and cost incurred in ling returns. Responses of 453 dealers (Treatment/Online: 205 & Comparison/Manual: 248) and 151 CTPs (Treatment/ Online: 75 & Comparison/Manual: 76) has been analyzed using Independent-Samples T Test and results are given in Tables given below. Please refer Annexure H & J for details. In this section we shall examine how online ling of returns has impacted dealers and CTPs quantitative data obtained through the survey and qualitative data from led observations shall be used in conjunction for this purpose.

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Total man-hours for preparation of documents


Table 4: Total man-hours for preparation of documents1 for Filing of Returns Filing Returns Dealer CTP Computerized 10.4935 5.0605 Manual 6.3810 3.9846 Change (C-M) 4.11242 1.07593 Signicance ** NS

Total man-hours for preparation of documents


12 10 8 6 4 2 0
Manual Computerized
5.0605 6.381 3.9846 4.11242 1.07593 10.4935

Change (C-M)

Dealers

CTPs

Dealers: Total man-hours spent for preparation of documents of online users is higher than that of manual users mainly because online users have to do more work: online users have to compile data (like manual users) plus they have to enter data in online template. In the case of manual users data entry is done by CTD after manual returns are submitted to Ofce. CTPs: Total man-hours spent for preparation of documents of online users is higher than that of manual users but it is not statistically signicant. In the case of CTPs too, the increase in man-hours can be attributed to data entry in online template.

____________
4

This includes man-hours spent in compiling data and man-hours were spent for data entry in online template

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Impact Assessment of Commercial Taxes Computerization 2010-Rajasthan

Total cost of preparation of documents

Table 5: Total cost for preparation of documents5 for Filing of Returns Filing Returns Dealer CTP Computerized 1211.1317 251.99 Manual 860.3024 191.33 Change (C-M) 350.82929 60.658 Signicance ** **

Total Cost of Preparation of Documents (INR)


1400 1200 1000 800 600
860.3024 1211.1317

400 200 0
Manual Computerized Change (C-M)
251.99 350.82929 60.658

191.33

Delers

CTPs

Dealers: Total cost of preparation of documents for online users is signicantly higher than that of manual users. This is mainly because online users have to enter data on online template and consequently they spend more on salary/wages for preparation of documents. It may also be noted that service charges of CTPs is higher in the case of online users this, however, is not signicant statistically. CTPs: Total cost of preparation of documents for online users is signicantly higher than that of manual users. This is because online users have to do data entry on online template resulting in higher salary/wages being paid for preparation of documents.

__________ 5 This includes amount spent as salary/wages for preparation of documents, expenses on stationery, cost of Internet, cost of Statutory Forms and other Forms including courier charges and Service charge paid to Tax Consultant for preparation of documents

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Impact Assessment of Commercial Taxes Computerization 2010-Rajasthan

4.1.2 Time and Cost of Submitting Documents for Filing Returns Number of trips for Filing Returns
Table 6: Number of trips Filing Returns Dealer CTP Computerized 1.11 1.09 Manual 1.19 1.17 Change (C-M) -.082 -.078 Signicance * NS

Number of Trips
1.4 1.2 1 0.8 0.6 0.4 0.2 0 -0.2
Manual Computerized

1.11

1.09

1.19

1.17

-0.082

-0.078

Change (C-M)

Dealers

CTPs

Dealers: Both manual and online users have to make at least one trip to CTD ofce. Manual users, however, had to make slightly more number of trips when compared to online users. CTPs: There is no signicant difference between manual and online users as far as the number of trips is concerned. This is because online users too have to submit hard copy of returns to CTD.

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Impact Assessment of Commercial Taxes Computerization 2010-Rajasthan

Waiting time6 for Filing Returns


Table 7: Waiting time in minutes Filing Returns Dealer CTP Computerized 53.6585 44.8611 Manual 56.7540 56.6447 Change (C-M) -3.09550 -11.7836 Signicance NS *

Waiting time (Minutes)


70 60 50 40 30 20 10 0 -10 -20
Manual Computerized

56.754 53.6585 44.8611 56.6447

-3.0955 -11.7836
Change (C-M)

Dealers

CTPs

Dealers: Waiting time for online users was marginally lesser than that of manual users. However, this difference is not statistically signicant. CTPs: Waiting time for online users is signicantly lesser than that of manual users. This is because returns submitted by online users are not scrutinized at the counter (as they have already submitted it online), while that of manual users are scrutinized by ofcers of CTD before receipt of submission is issued.

__________
6

Time spent in queue and transaction time at counter

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Impact Assessment of Commercial Taxes Computerization 2010-Rajasthan

Amount spent as salary/wages on total time spent in availing service7


Table 8: Amount spent as salary/wages on total time spent in availing service Filing Returns Dealer CTP Computerized 109.67 71.87 Manual 68.81 64.78 Change (C-M) 40.858 7.090 Signicance ** NS

Amount spent as salary/wages on total time spent in availing service (INR) 120 100 80 60 40 20 0
Manual Computerized Change (C-M)

109.67
71.87

68.81

64.78

40.858
7.09

Dealers

CTPs

Dealers: Online users spent signicantly higher amounts when compared to manual dealers. The difference seen is mainly because online users have to submit hard copy to CTD for which they have to make at least one trip and also spent time for online transaction. Besides, the wages of employees who are doing online transactions could be higher than that of employees that do manual transactions as using online services require higher skill level. CTPs: Although the amount spent by online users is higher than that of manual users, it is not signicant statistically.

__________
7

Traveling time + waiting time + time for online transaction (man-hours spent X wage per man-hour)

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Total payment made8 for Filing Returns


Table 9: Total payment made for Filing Returns Filing Returns Dealer CTP Computerized 450.31 15.04 Manual 307.96 30.25 Change (C-M) 142.344 -15.210 Signicance ** *

Total Payment Made (INR)


500 400 450.31 300 200 100 15.04 0
Manual Computerized Change (C-M)

307.96 30.25

142.344 -15.21

-100

Dealers

CTPS

Dealers: There is no service charge to be paid to CTD for ling of returns and there is no signicant difference between online and manual modes in terms of amount of bribe. Therefore, the difference in total payment made is mainly due to the service charge paid to CTP, which is higher in the case of online dealers. CTPs: The difference seen can be attributed to amount of bribe paid (as there is no service charge), which is signicantly less in the case of online users.

__________

Includes a) service charge paid to CTP, b) amount paid to department for which receipt was given, and c) amount paid as bribe to department staff/ functionaries

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Impact Assessment of Commercial Taxes Computerization 2010-Rajasthan

Time in availing service through manual process


Table 10: Time in availing service through manual process (Hours) Filing Returns Dealer CTP Computerized .8618 1.3472 Manual 2.5041 1.8818 Change (C-M) -1.64231 -0.53464 Signicance ** NS

Time in availing service through Manual process (Hours)


3 2.5 2 1.5 1 0.5 0 -0.5 -1
Manual Computerized
-1.64231 -0.53464 0.8618 1.3472 2.5041 1.8818

Change (C-M)

-1.5 -2

Dealers

CTPs

Dealers: Returns submitted by online users are not scrutinized as they have already submitted it online, while that of manual users are scrutinized hence the difference. CTPs: Although it is not signicant statistically, online users spent less time at the counter.

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Total elapsed time in availing service


Table 11: Total elapsed time in availing service (Hours) for Filing Returns Filing Returns Dealer CTP Computerized 1.6055 2.9765 Manual 2.5175 1.5266 Change (C-M) -.91203 1.44995 Signicance ** NS

Total Elapsed Time in Availing Service (Hours)


3.5 3 2.5 2 1.5 1 0.5 0 -0.5 -1 -1.5
-0.91203

2.9765
2.5175

1.5266
1.6055

1.44995

Manual

Computerized

Change (C-M)

Dealers

CTPs

Dealers: Total elapsed time is signicantly lower for users of online service CTPs: There is no signicant difference between online and manual modes in terms of total elapsed time in availing service.

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4.2 Obtaining VAT Forms (Mandatory Online Service)


Table 12: Difference between Manual & Online processes of obtaining VAT forms Manual Online

VAT forms had to be collected from CTD Ofces dealers All VAT forms are available on CTD website. Dealers can had to visit the ofce at least once download it or get it from CTPs. VAT forms are also sold by some Photocopy centres. Dealers need not visit CTD Ofce for VAT forms

As part of the survey 97 dealers and 52 CTPs were interviewed for gathering information on the service: obtaining VAT forms. As mentioned earlier, proxy-pretest design has been used all respondents had to answer questions regarding manual mode of service that they had used some time in the past (manual mode is not in existence now) and online mode that they used recently. Paired-Samples T Test has been used to analyze data. Number of trips
Table 7: Number of trips VAT Forms Dealer CTP Computerized 0 0 Manual 1.28 1.52 Change (C-M) -1.28 -1.52 Signicance ** **

Number of Trips
2 1.5 1 0.5 0 -0.5 -1 -1.5 -2 0 0
Manual

1.52 1.28
Computerized Change (C-M)

-1.28

-1.52

Both dealers and CTPs have beneted from online service as they did not have to make even a single trip to obtain VAT forms. Online service has helped them save travel cost, salary /wages for traveling and waiting at ofce, travel time and waiting time.

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Amount spent as salary/wages on total time spent in availing service9


Table 13: Amount spent as salary/wages on time spent in availing service (INR) VAT Forms Dealer CTP Computerized 32.411 15.894 Manual 78.659 74.673 Change (C-M) -46.2474 -58.7788 Signicance ** **

Amount spent as salary/wages on total time spent in availing service


100 80 60 40 20 0 -20 -40 -60 -80 32.411 15.894
Computerized Change (C-M) -46.2474 -58.7788

78.659 74.673

Manual

Clearly the amount spent as salary/wages has decreased signicantly for dealers and CTPs as a result of this online service. The difference is because online users do not have to visit CTD to obtain VAT forms.

__________
9Traveling time + waiting time + time for online transaction (man-hours spent X wage per man-hour)

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Impact Assessment of Commercial Taxes Computerization 2010-Rajasthan

Total payment made10


Table 14: Total payment made (INR) VAT Forms Dealer CTP Computerized .0000 .0000 Manual 22.82 27.31 Change (C-M) -22.82 -27.308 Signicance ** **

Total Payment Made (INR)


40 30 20 10 0 -10 -20 -30 -40 0
Manual

27.31 0 22.82
Computerized Change (C-M)

-22.82

-27.308

Dealers

CTPS

Total payment made has signicantly decreased in the case of online users (dealers and CTPs). As there is no service charge, the only payment made is bribes to ofcials. Online users do not have to approach CTD ofcials for VAT forms they can download it therefore, they did not pay any bribes.

___________
15

Includes a) amount paid to department for which receipt was given, and c) amount paid as bribe to department staff/functionaries

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Impact Assessment of Commercial Taxes Computerization 2010-Rajasthan

Total elapsed time in availing service


Table 15: Total elapsed time in availing service (Hours) VAT Forms Dealer CTP Computerized 1.287 .6721 Manual 16.261 12.5194 Change (C-M) -14.9740 -11.847 Signicance ** **

Total Elapsed Time in Availing Service (Hours) 20 15


16.261

10 5 0
Manual
1.287

12.5194 0.6721
Computerized Change (C-M)
-14.974

-5 -10 -15 -20

-11.847

Dealers

CTPs

There is signicant reduction in total elapsed time in availing service due to introduction of online service this is because online service has eliminated the need for visiting CTD ofce for obtaining VAT forms.

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Impact Assessment of Commercial Taxes Computerization 2010-Rajasthan

5.0 Overall Assessment


Optional Services Dealers and CTPs were asked to rate some attributes11 w.r.t optional services provided by CTD on a ve point scale. Independent-Samples T Test was used for analysis. Analysis shows that, for most of the attributes, difference of mean scores of manual and online users was not statistically signicant. In some cases, however, they were statistically signicant and those attributes are given below:
Table 16: Attributes on which online service was rated higher than manual service Dealers Time and effort in procuring forms Time & effort in accessing information Condentiality and security of data CTPs 1. Courtesy and helpfulness of ofcials 2. Accuracy of transactions

1. 2. 3.

(Table 17: Attributes on which online service was rated lower than manual service CTPs Knowledge of ofcials reportedly many ofcials do not have sound knowledge on online process and consequently they are unable to assist users when they face problems 2. Level of corruption online users had expected that corruption would be eliminated or reduced signicantly by online service. This has not happened and therefore the lower score for online service

1.

Mandatory Services Dealers and CTPs were asked to rate some attributes w.r.t mandatory services provided by CTD on a ve point scale. Paired-Samples T Test was used for analysis. Dealers: Online service has been rated higher than manual in all the twenty attributes. Apparently dealers are happy with the mandatory online service (obtaining VAT forms). CTPs: Out of the twenty attributes online service has been rated higher than manual in eleven attributes and lower in only one attribute (knowledge of ofcials). In the case of rest of the attributes, difference was not statistically signicant. Composite Score Interview schedule wise Composite Scores were calculated based on information collected from the section: Overall Assessment. Results are given in the gure below:

_________
16

There were 28 attributes for dealers and 27 for CTPs

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Impact Assessment of Commercial Taxes Computerization 2010-Rajasthan

Composite Score
0.8 0.7 0.6 0.5 0.719403 0.4 0.3 0.2 0.1 0 -0.1 0.0442 -0.01528 0.440068

Optional Services Usersl

Mandatory Service Users

Dealers

CTPs

The graph clearly shows that users of mandatory service (obtaining VAT forms) are far more satised than users of optional online services (mainly ling of returns as most of the responses were for this service).

6.0 Suggestions of Respondents


Major suggestions for improving online services 1. 2. 3. 4. 5. 6. 7. 8. Eliminate practice of submission of hard copy to CTD Server speed should be increased Tax consultants should be allowed to make E-payment on behalf of their clients through Consultants Internet Banking A/C (dealers do not want to give CTPs access to their accounts) Maintenance of website should not be done during ofce hour CTD ofcials should be given adequate training, so that they can handle queries on online services efciently Involve more banks in E-payment Provide templates (w.r.t. returns) that can perform data verication ofine Changes in processes/templates should be immediately communicated to dealers

Major suggestions to increase use of e-service 1. 2. Awareness campaigns on online services for users Establishment of common service centres to facilitate e-services to all

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Impact Assessment of Commercial Taxes Computerization 2010-Rajasthan

3.

Online processes should be made much more user friendly & simple

Other Suggestions 1. 2. 3. 4. All forms, including CST Forms, should be provided online There is a need to increase counters at CTD Ofce to reduce waiting time Local language interface needed for online services To minimize interface between ofcials and dealers/CTPS, copy of return (that is led online) should be sent to a central processing unit/centre

7.0 Opinion of Service Providers


As part of the study we interviewed ofcials of CTD at the ward level. Information gathered from them is summarized below: 1. Benets of e-governance project: Saving time and cost: CTD has beneted from online ling of returns as they do not have to do data entry - it is done by dealers on online template and they can hold dealers responsible for data entry errors. In manual mode, however, data entry is done by CTD and therefore they cannot hold dealers responsible for data entry errors

2.

Challenges faced as a result of e-governance project: Lack of adequate number of computers Lack of proper training for employees on online services Power interruptions Some ofces do not have system specialists who can handle glitches

8.0 Recommendations For Improving Online Services


Filing Returns 1. Preparation of documents: Online dealers have to enter data on an online template this is a complex and time consuming process. There is a need to make this process simpler and faster. One major problem pointed out by users is that while uploading online template (after data entry), if there is an error (usually syntax error), the online application will not accept the template. Consequently the user has to rectify the error and upload the template yet again. This leads to wastage of time many dealers therefore suggest that the template should be designed to detect errors during data entry stage itself, so that time is not wasted while uploading the template

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Impact Assessment of Commercial Taxes Computerization 2010-Rajasthan

Many dealers have suggested that the online template of CTD should be made compatible with popular accounting software (e.g. Tally) so that data could be directly transferred to the online template - thus avoiding data entry. The study reveals that most online dealers (about 90%) maintain book of accounts on their computers and therefore it could be worthwhile to consider this suggestion.

3.

Submitting returns to CTD ofce: Online dealers have to submit hard copy of online returns to CTD ofce thus they have to make at least on trip to the ofce. There is a need to make this service end-to-end and eliminate the need to visit ofce. We understand that this service can be made an end-to-end service trough use of digital signature. However, the use of digital signature among dealers is minimal because: Most dealers lack proper awareness regarding digital signature

Many are reluctant to use it because they believe that digital signature is not secure it could be hacked and misused The study has reveled that most dealers depend on CTPs (either fully or partially) for ling returns. This means that the dealer will have to give the CTP access to his/her digital signature. However, many dealers do not trust CTPs with their digital signatures.

Considering the above mentioned points we feel that service should be made end-to-end by circumventing the challenges posed by digital signature.

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Annexure A

Research Design & Sampling Methodology Rajasthan


1.1 Introduction

For administrative convenience, the State has been divided into Divisions/Zones, Circles and Wards. Each Zone/Division has been divided into Circles and each Circle into Wards, which are basic units of tax administration. There are 13 Divisions, 111 Circles and 328 Wards in Rajasthan. Online services in Rajasthan and service wise percentage of users are given below:
Table 1: Percentage of Online and Manual Users (1st April 08 to 31st May 09) Service VAT (%) M 99.95% (40007) 99.94% (629684) 99.33% (763448) 95% 95% 90% 0 O 0.05% (17) 0.06% (378) 0.67% (5128) 5% 5% 10% 100% M 99.98% (46337) 99.98% (38173) 97.50% (46337) 95% 95% 90% 100% CST (%) O 0.02% (5) 1.05% (405) 2.50% (1191) 5% 5% 10% 0

Registration Filing of returns Payment Communication/Information Dissemination* Refund* E-submission of declaration form* Issue of Forms2

*Approximate gures based on perception of CTD Ofcials actual gures were not available Source: Commercial Taxes Department, Rajasthan

1.2 Research Design As Table 1 shows, all online services, except issue of VAT forms are optional. Therefore, two types of Quasi-Experimental Design has been adopted to assess impact of the E-governance Project: I. Nonequivalent Groups Design, with treatment and comparison groups, has been adopted for impact assessment of Optional Online Services (Please refer Annexure AI). Treatment Group has been dened as: Dealers who have availed at least one of the optional online services (reference period is last 90 days). Treatment group were asked to provide information pertaining to online services only. Comparison Group has been dened as: Dealers who have not availed any of the optional online services, but availed at least one manual service (reference period is last 90 days). Comparison group were asked to provide information pertaining to manual services only. II. Proxy Pretest Design adopted for impact assessment of Mandatory Online Service Issue of VAT Forms (Please refer Annexure A II). Non-equivalent Groups Design cannot be used for this

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because of the absence of comparison group. Commercial Taxes Practitioners (CTPs) undertake various tasks, including registration and ling of returns, on behalf of their clients (Dealers). Therefore, it is also important to know how this e-governance project has impacted CTPs. This study will assess impact on CTPs as well - using the designs given above. 1.3 Selection of Zones/Divisions Selection of Zones was done on the basis of activity levels i.e. total number of dealers who have used Online Services (VAT+CST - registration, statutory forms, return ling, e-payment from 1/4/2008 to 31/05/2009. Zones were arranged in descending order of the total number of users/dealers who have availed online services. Then they were divided in quartiles and one Zone was selected from each quartile by taking into account its geographical location (so as to ensure geographical dispersion of selected zones).
Table 2: Selection of Zones/Divisions Quartile Zones/Division Ajmer Jaipur II Bhilwara Total Kota Jodhpur Jaipur I Total Jaipur III Bikaner Alwar Total Pali Udaipur Sriganganagar Bharatpur Total G. Total E-Services users 56267 47075 25675 129017 22257 12610 1488 36355 1005 927 600 2532 174 120 80 30 404 168308 Percentage Selected Zones /Division No. of Respondents

Quartile I

76.66%

Jaipur II

450

Quartile II

21.60%

Kota

150

Quartile III

1.50%

Bikaner

100

Quartile IV

0.24%

Udaipur

100

100%

800

Note:
1.

Sample size in each selected Zones/Division is proportionate to the number of users in the quartile in which it falls According to calculation (Sample size of quartile = proportion of activity level X total sample size) we had arrived at the following sample size for each quartile: Quartile 1 (Zone Jaipur II) = 613; Quartile 2 (Zone Kota) = 173; Quartile 3 (Zone Bikaner) = 12; Quartile 4 (Zone

2.

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Impact Assessment of Commercial Taxes Computerization 2010-Rajasthan

Udaipur) = 2. However, we felt that the sample size in Quartile 3 and 4 needs to be increased. Therefore, sample size in Quartile 1 and 2 have been reduced and that of Quartile 3 and 4 have been increased. 1.4 Selection of Circles Selection of Circles in the selected zone was done on the basis of activity levels i.e. total number of dealers who have used Online Services (VAT - registration, statutory forms, return ling, e-payment from 1/4/2008 to 31/07/2009 (Please refer Annexure A III). Circles were arranged in descending order of the total number of users/dealers who have availed Online VAT services. Then top four circles (in terms of number of e-service users) in all were selected from each selected zone. In all, 16 Circles selected in 4 Zones/Divisions.
Table 3: Selection of Circles Selected Zone/Division Selected Circles SPECIAL - II A J SPECIAL - VIII SPECIAL - II B SPECIAL A B A JHUNJHUNU CHURU SPECIAL B A C E-services (VAT) users/dealers 32438 340 339 236 31005 458 248 128 302 252 178 160 118 66 65 59

Jaipur-II

Kota

Bikaner

Udaipur

1.5 Selection of Wards Within each selected Circle two Wards selected on the basis of their distance from Circle. One Ward is near the Circle and the other is far from the Circle Ofcials at Circle Level consulted in selecting Wards In all, 32 Wards covered in 16 Circles. 1.6 Selection of Respondents from Wards At the Ward Level, a listing exercise was carried out to categorize Dealers and CTPs as respondents for Optional and Mandatory Services.

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1.7 Total Sample Size


Table 4: Total Sample Size Selected Zone/Division Selected Circle SPECIAL - II A J SPECIAL - VIII SPECIAL - II B SPECIAL A B A JHUNJHUNU CHURU SPECIAL B A C No. of Wards Sample Size/Ward

Jaipur - II

4 Circles X 2 = 8

450/8 = 56

Kota

4 Circles X 2 = 8

150/8 = 19

Bikaner

4 Circles X 2 = 8

100/8 = 12

Udaipur

4 Circles X 2 = 8

100/8 = 12

Total Dealers Covered: 600 [Mandatory Service (VAT Forms) 100; Optional Services 500 (Treatment- 250 & Comparison 250) Total CTPs Covered: 200 [Mandatory Service (VAT Forms) 50; Optional Services 150 (Treatment- 75 & Comparison 75)

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Impact Assessment of Commercial Taxes Computerization 2010-Rajasthan

Annexure A I

Quasi-Experimental Design: Nonequivalent Groups Design


(Post-test Only)

N N

X O X O

Each group is described on a single line (i.e., treatment group on top, comparison group at the bottom) N indicates that groups are Nonequivalent (i.e., people have not been randomly assigned to groups) X depicts the implementation of a program O stands for the administration of a measure to a group (only post-test in this case) The Non-Equivalent Groups Design (NEGD) is probably the most frequently used design in social research. It is structured like a pretest-posttest randomized experiment, but it lacks the key feature of the randomized designs -- random assignment. In the NEGD, we most often use intact groups that we think are similar as the treatment and control groups. In education, we might pick two comparable classrooms or schools. In community-based research, we might use two similar communities. We try to select groups that are as similar as possible so we can fairly compare the treated one with the comparison one. But we can never be sure the groups are comparable. Or, put another way, its unlikely that the two groups would be as similar as they would if we assigned them through a random lottery. NEGD is susceptible to the internal validity threat of selection. Any prior differences between the groups may affect the outcome of the study. Under the worst circumstances, this can lead us to conclude that our program didnt make a difference when in fact it did, or that it did make a difference when in fact it didnt.

Reference Trochim, William M. The Research Methods Knowledge Base, 2nd Edition. Internet WWW page, at URL: http://www.socialresearchmethods.net/kb/ (version current as of October 20, 2006)

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Annexure A II

Quasi-Experimental Design: Proxy Pretest Design

0-1 X 0-2
O - 1 is administration of a measure (recollection) X depicts the implementation of a program O - 2 is administration of a measure (current) The proxy pretest design looks like a standard pre-post design. But theres an important difference. The pretest in this design is collected after the program is given a proxy variable is used to estimate where the groups would have been on the pretest. In Recollection Proxy Pretest Design you ask the participants to estimate where their pretest level would have been. For instance, you might ask participants to complete your measures estimating how you would have answered the questions six months ago. This type of proxy pretest is not very good for estimating actual pre-post changes because people may forget where they were at some prior time or they may distort the pretest estimates to make themselves look better. However, there may be times when you are interested not so much in where they were on the pretest but rather in where they think they were. The recollection proxy pretest would be a sensible way to assess participants perceived gain or change. The proxy pretest design is not one you should ever select by choice. But, if you nd yourself in a situation where you have to evaluate a program that has already begun, it may be the best you can do and would almost certainly be better than relying only on a posttest-only design.

Reference Trochim, William M. The Research Methods Knowledge Base, 2nd Edition. Internet WWW page, at URL: http://www.socialresearchmethods.net/kb/ (version current as of October 20, 2006)

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Annexure AIII

Rajasthan VAT Circle Wise Statistics from 01-Apr-2008 To 31-Jul-2009


Zone Circle Special - II A J Special - VIII Jaipur-II D H Dausa Special - Rajasthan Works Tax - II Special - II B Special A Special - III Bundi Baran Jhalawar Works Tax B A Jhunjhunu Churu Special Works Tax Special B A C Banswara Dungarpur Works Tax TOTAL 32438 340 339 236 212 179 20 17 15 31005 458 248 128 34 27 9 2 13 302 252 178 160 141 13 118 66 65 59 58 38 4 Registration 0 0 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 Return ling 57 124 73 73 46 72 4 10 14 15 76 39 32 25 13 6 1 2 39 43 2 3 57 13 43 38 18 30 21 6 4 Payment 655 216 266 35 166 106 16 7 1 16 75 118 92 9 14 3 1 11 179 208 99 12 67 0 56 28 16 17 33 16 0 Statutory Form 31726 0 0 128 0 0 0 0 0 30974 307 91 4 0 0 0 0 0 84 0 77 145 17 0 19 0 31 12 4 16 0

Kota

Bikaner

Udaipur

Note: Circles highlighted in Bold has been selected

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Impact Assessment of Commercial Taxes Computerization 2010-Rajasthan

Annexure B

Rajasthan- Listing Schedule For Dealers


Address of Dealer13 Division Circle Ward < 50 lakhs.1 Turnover in FY 2008-09 50 lakhs 1 crore2 > 1 crore.3 Optional Services availed in last 90 days14 Service Registration Filing Returns Payment Seeking Information Refund Submission of declaration form Used/Not Yes-1; No-2 Yes-1; No-2 Yes-1; No-2 Yes-1; No-2 Yes-1; No-2 Yes-1; No-2 Manual -1; Manual -1; Manual -1; Manual -1; Manual -1; Manual -1; Mode Online - 2 Online - 2 Online - 2 Online - 2 Online - 2 Online - 2 Outsourcing15 In-house - 1, Partial - 2, CTP - 3 In-house - 1, Partial - 2, CTP - 3 In-house - 1, Partial - 2, CTP - 3 In-house - 1, Partial - 2, CTP - 3 In-house - 1, Partial - 2, CTP - 3 In-house - 1, Partial - 2, CTP - 3 Outsourcing16 In-house - 1, Partial - 2, CTP - 3 Name Code

Mandatory Services Availed Service Obtaining VAT Forms Used/Not Yes-1; No-2 Mode Manual -1; Online 2; Both 3

Address of CTP17 (only if CTPs service has been availed by the Dealer)

Name and Code of Investigator: Date:

__________ 13 14

With phone numbers and nearest landmark Circle responses 15 Completely in-house 1; Partially in-house 2; Completely outsourced to CTP 3 16 Should be considered completely in-house only if both manual and online services are done in-house 17 With phone numbers and nearest landmark

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Impact Assessment of Commercial Taxes Computerization 2010-Rajasthan

Rajasthan- Listing Schedule For CTPs


Address of CTP18 Division Range Ward Turnover in FY 2008-09 (INR) Service Registration Filing Returns Payment Seeking Information Refund Submission of declaration form Obtaining VAT Forms Optional Services availed in last 90 days19 Used/Not Yes-1 Yes-1 Yes-1 Yes-1 Yes-1 Yes-1 No-2 No-2 No-2 No-2 No-2 No-2 Manual -1 Manual -1 Manual -1 Manual -1 Manual -1 Manual -1 Manual -1 Mode Online - 2 Online - 2 Online - 2 Online - 2 Online - 2 Online - 2 Online 2 Both 3 Name Code

Mandatory Services Availed Yes-1 No-2

Name and Code of Investigator: Date:

__________ 20 21

With phone numbers and nearest landmark Circle responses

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Impact Assessment of Commercial Taxes Computerization 2010-Rajasthan

Annexure C

Rajasthan: Interview Schedule For Dealers


(Dealers Using Optional Online Services)
A. Sl. No. State State Code District IDENTIFICATION DETAILS Respondents Name & Designation Location of Ofce Town/Village Code Rural..1 Urban.2 Group20 Treatment (online)..1 Interviewer Name Code Signature Editor Name Code Signature Supervisor Name Comparison (manual)2 Code Signature Distance from Ghatak Ofce (Km.) Ward Ward code Circle Circle code Division Division Code

District Code Date of Interview (DD/MM)

Address of Dealer with landmark Land : Mobile: TIN

Phone

B. 1B.

DEALER PROFILE Proprietor.1 Partnership..2 Private Limited Company..3 Public Limited Company4 Hindu Undivided Family 5 Co-operative Society..6 Government Undertaking..7 Others (Specify) Manufacture.1 Wholesale.2 Retail.3 Export...4 Hire Purchase..5 Works Contract....6 Leasing.7 Hotels8 Food & Drink.9 Others (Specify)

Please specify the Constitution of your enterprise

2B.

Please specify the type of business21

3B.

What was the annual turnover in Financial Year: 2008-09 (INR)

__________
20 21

As per the listing exercise As per Commercial Tax Department records

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Impact Assessment of Commercial Taxes Computerization 2010-Rajasthan

4B.

Please give details of Commercial Taxes paid in Financial Year: 2008-09 (INR) VAT CST

Tax

Registered Yes-1 Yes-1 No-2 No-2

Amount Paid (INR)

5B.

Entry Tax Others (Specify) Please specify the mode in which Books of Accounts are Manual .....1 maintained within the organization Computerized...2 Not maintained at all.3 Number of staff in your organization who are involved in activities related to Commercial Taxes C. AWARENESS AND USAGE OF ONLINE SERVICES

6B.

1C.

Are you aware of online services provided by Commercial Taxes Department? Please specify the rst source of awareness about online services provided by Commercial Taxes Department

Yes - 1 No - 2

Part D

2C.

Newspaper...1 Television.2 Other Dealers..3 CTPs....4 Commercial Tax Dep. Ofcial..5 Others (Specify)

3C.

Which are the online services provided by Commercial Taxes Department? (Multiple Responses)

Application for Registration....1 Application for issue of forms2 Application for refund...3 Filing Returns4 Payment of Taxes5 Information Dissemination..6 Others (Specify)

4C. 5C.

Have you used any of the online services provided by Com- Yes 1 mercial Taxes Department? No 2 Please give details regarding online services used and frequency of use Frequency of Use Fortnightly.1 Monthly. 2 Quarterly3 Annually..6 Others (Specify)

7C Used/Not Yes-1 Yes-1 Yes-1 Yes-1 Yes-1 Yes-1 No-2 No-2 No-2 No-2 No-2 No-2 Frequency

Online Service Registration (application) Filing Returns Payment of Taxes Application for Forms Seeking information Others (Specify)

6C.

What are the reasons for using online service (s) (Multiple Responses)

PLEASE PROCEED TO PART D AFTER ANSWERING THIS QUESTION

Online process is faster ....1 Online process is more secure..2 Fewer errors in online process..3 Fewer visits to Commercial Taxes Department.4 Online process is more transparent.5 It is mandatory.6 Others (Specify)

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Impact Assessment of Commercial Taxes Computerization 2010-Rajasthan

7C.

What are the reasons for not using online service (Multiple responses)

Do not have skills to use online services....1 Do not have access to hardware/software.....2 Do not have access to internet....3 Unreliable power situation....4 Online process is prone to errors....5 Online process is not secure.......6 Online process is slow..7 Have to submit hard copy to Ofce.8 Others (Specify)

A. TIME AND EFFORT AND COSTS OF AVAILING SERVICES Please provide the following details with reference to maximum of two services that you have availed from Commercial Tax Department in last 90 days Services Availed in Last 90 Days: (Only Online services for Treatment Group and 1D. only Manual Services for Comparison Group) Filing Returns1 Payment.......2 Registration3 Refund4 Submission of declaration form..5 Seeking information (including application tracking)6 15D 2D. 3D. Mode of service: Online 1; Manual 2 Was the online service availed mandatory/optional? Mandatory 1; Optional 2 [NOT APPLICABLE FOR MANUAL USERS] Were processes related to the service outsourced? 6D No, it was done completely in-house 1 Yes, it was partially done by CTP 2 What are the reasons for depending on CTP (Multiple responses) Due to lack of sufcient knowledge on processes.1 To ensure accuracy of data given to Department..2 Want to avoid interface with Dep. Ofcials.3 Do not want to spent time on this.4 Others (Specify)

4D.

5D.

D-1: Time and Effort and Cost of Preparation of Documents (This section is not applicable for Services: Payment and Seeking Information) 6D. How many man-hours were spent in completing various forms and preparing supporting documents for manual ling of returns? PLEASE NOTE THAT THIS COULD BE APPLICABLE FOR ONLINE USERS AS WELL - MANY OF THEM ARE REQUIRED TO FILE HARD COPIES, EVEN AFTER FILING RETURNS ONLINE How many man-hours were spent for data entry in online template? (NOT APPLICABLE FOR MANUAL USERS) Total man-hours spent for preparation of documents for ling returns (6D + 7D) Please calculate the amount spent as salary/wages for preparation of documents for ling returns (Total man-hours spent X wage per man-hour) {INR} Cost of stationery22 and photo copies w.r.t ling returns {INR} Cost of access to Internet23 (INR) (NOT APPLICABLE FOR MANUAL USERS) Cost of Statutory Forms and other Forms including courier charges (INR)

7D.

8D. 9D. 10D. 11D. 12D.


__________ 22 23

Ledgers, CDs, printing paper, printing ink, carbon paper etc. Internet charges based on hours of internet used for this particular service

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Impact Assessment of Commercial Taxes Computerization 2010-Rajasthan

13D. 14D.

Service charge paid to Tax Consultant for preparation of documents (INR) (NOT APPLICABLE IF DONE IN-HOUSE: PLEASE SEE 4D) Total cost of preparation of documents for ling returns (INR) D- 2: Time and Effort and Cost of Availing Services From Commercial Taxes Department

15D. 16D.

How many trips did you need to make for the service including trips for error correction? Trip Purpose of each trip and time spent waiting (Including time spent in queue and transaction time at counter ) for availing service - (min) I To submit documents......1 To collect certicate....2 To correct error in certicate/document issued by CTD.3 To correct errors in documents submitted by Dealer/Tax Consultant..4 To track application5 To seek information6 To bank/treasury for making payment - Challan (applicable only for payment)..................................................................................................7 To fulll requirement of physical presence.8 Others (Specify) II III IV V

Purpose Time Purpose Time

17D.

Please see 15D if the number of trips is more than one, then ask: Why did you have to make more that one trip? It was required as per CTD procedure..1 To follow up, as there was delay on the part of CTD to provide service.2 Could not avail service in previous visit (s) as there was a long queue.3 Concerned functionary was not available..4. Counter was not operational5 Documents/application submitted by me were incomplete6 Others (Specify)

18D.

Do you think you had to wait excessively for availing service in any of the trips? Yes 1 No 2 20D Please specify the reasons for excessive wait Long queue.1 Ofcials of CTD are inefcient (slow in processing).2 Processes are too complex & takes lot of time to complete...3 Too many applicants at ofce.4 Badly managed queue5 Some windows/counters were not operational6 Power breakdown.....7 Computer/network connectivity failure..8 Others (Specify)

19D.

20D. 21D. 22D. 23D. 24D. 25D.

Please specify the travel cost incurred in making a round trip to CTD Ofce (INR) Please specify the travel cost incurred in making a round trip to Bank/Treasury (INR) (APPLICABLE ONLY FOR PAYMENT) Total travel cost incurred in availing service (number of trips X travel cost per trip) INR Please specify the travel time spent in making a round trip to CTD Ofce (Min.) Please specify the travel time spent in making a round trip to Bank/Treasury (Min.) (APPLICABLE ONLY FOR PAYMENT) Total travel time spent in availing service (number of trips X travel time per trip) Min.

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Impact Assessment of Commercial Taxes Computerization 2010-Rajasthan

26D. 27D.

How many times did you log-in to avail online service? [NOT APPLICABLE FOR MANUAL USERS] Please see the previous question if the number is more than one, then ask: Why did you have to log-in more than once? [NOT APPLICABLE FOR MANUAL USERS] Service was not available as server was slow.1 Portal was undergoing maintenance...2 Templates had changed, therefore it had to be downloaded rst3 Others (Specify) What was the total time taken to complete transaction Online - it does not include time taken for data entry? (Min) [NOT APPLICABLE FOR MANUAL USERS] Do you think that the time taken to complete online transaction was excessive? Yes 1; No 2 31D [NOT APPLICABLE FOR MANUAL USERS] Why do you think are the reasons for excessive time in online transactions? Server is slow.1 Processes are complex and time consuming......2 Errors occur while uploading template..3 Others (Specify) Please calculate the amount spent as salary/wages on total time spent in availing service: traveling time + waiting time + time for online transaction (man-hours spent X wage per man-hour) {INR} THIS DOES NOT INCLUDE TIME TAKEN FOR FILLING FORMS, PREPARATION OF SUPPORTING DOCUMENTS AND DATA ENTRY Service Charge paid to department for which you got a receipt? (INR) Service charge paid to Tax Consultant for facilitating service from CTD Ofce (INR) (NOT APPLICABLE IF DONE IN-HOUSE: PLEASE SEE 4D) What was the total payment24 made by you for availing the service? (INR) What was the total elapsed time in availing service - how long did it take for the task to be completed, right from the date of applying to actually receiving the service applied for? (this does not include time taken for lling forms, preparation of supporting documents and data entry)? (Hours) IN CASE OF ONLINE USERS, TOTAL ELAPSED TIME IS THE TIME TAKEN TO COMPLETE THE TRANSACTION ONLINE PLUS TIME SPENT TO SUBMIT HARD COPIES TO CTD Manual Process Online Process Total Manual Process Online Process Total

28D. 29D. 30D.

31D.

32D. 33D. 34D. 35D.

36D. 37D.

Did you pay a bribe directly to Ofcials? Yes-1; No-2 Part E For what purpose did you pay the bribe indicated in the previous question? (Multiple responses) To avoid audit assessment by CT Department.1 To inuence functionaries to manipulate records in your favor...2 To expedite the process....3 Others (Specify) E. OVERALL ASSESSMENT

On a 5 point scale (Dissatised-1; Somewhat dissatised-2; Neutral-3; Somewhat satised-4; Very satised-5) please rate the following attributes (Online services for Treatment Group and Manual services for Comparison Group) FILING OF RETURNS 1E. 3E. Time and effort in ling returns 2E. Cost incurred in ling returns Design and layout of forms (templates in case of online services)

__________ 24 Includes a) service charge paid to intermediary/agency, b) amount paid to department for which receipt was given, and c) amount paid as bribe to department staff/functionaries

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Impact Assessment of Commercial Taxes Computerization 2010-Rajasthan

PAYMENT OF TAX 4E. Time and effort in tax payment 5E. Security of monetary transactions COMMON ATTRIBUTES (Applicable For All Services) 7E. 9E. 11E. Overall quality of governance26 Accuracy of transactions Time and effort in procuring forms

6E. 8E.

Overall quality of service25 Overall experience of availing service from CTD

10E. Condentiality and security of data 12E. Time and effort in accessing information 14E. Clarity and simplicity of processes and procedures 16E. Transparency in CTD 18E. Ability to inuence policies, rules and procedures through feedback 20E. Courtesy and helpfulness of Ofcials 22E. Complaint handling mechanism (including service provided by Call centre/Helpline) 24E. Queuing system at CTD Ofce 26E. Adherence to Citizen Charter31 28E. Durability and legibility of certicates/receipts
27

13E. Predictability of outcome 15E. Accountability of Ofcials 17E. Knowledge of Ofcials 19E. Level of corruption28 21E. Problem resolution29 23E. Convenience of working hours30 25E. Convenience of location of ofce (accessibility and ambience) 27E. Dependence on CTPs32

29E. Among the above given factors please list the three factors that you consider the most important RECORD THE S.NO. OF THE FACTOR F. SUGGESTIONS33 1F. Please give your suggestions in improving online services: (Multiple Responses) Eliminate practice of submission of hard copy to CTD.....a Server speed should be increasedb Tax Consultants should be allowed to make E-payment on behalf of their clients through Consultants Internet Banking A/C .....c Maintenance of website should not be done during Ofce Hours of Traders/Tax Consultants.....d CTD ofcials should be given adequate training, so that they can handle queries on online services efciently.........e Involve more Banks in E-payment.....f Provide templates(w.r.t. returns) that can perform data verication ofineg Changes in processes/templates should be immediately communicated to dealers........h Others (Specify)
__________ 25 Quality of service is understood as fairness, speed of processing, accuracy of transactions, legibility and durability of certicates and printouts, convenience of obtaining service 26 Governance is understood as transparency, accountability and corruption-free working 27 Understanding and awareness of the basis on which decisions affecting you/other users are taken by ofcials 28 Very corrupt-1; Somewhat corrupt-2; Neutral-3; Somewhat less corrupt-4; Not at all corrupt-5 29 Mechanism to rectify inadvertent errors in forms/documents submitted by Dealers to CTD e.g. computational errors/wrong gures 30 Hours of service in case of online services 31 Adherence of the time frame for service delivery (elapsed time) to that specied in citizens charter 32 Very much dependant -1; Somewhat dependant -2; Neutral-3; Somewhat less dependant-4; Not at all dependant-5 33 This part is for all users - manual and online

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Impact Assessment of Commercial Taxes Computerization 2010-Rajasthan

2F.

Please give your suggestions to increase use of online services: (Multiple Responses) Awareness campaigns on online services for dealers..a Establishment of Common Service Centres to facilitate E-services to all dealers.....b Online processes should be made much more user friendly and simple.....c Others (Specify)

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Impact Assessment of Commercial Taxes Computerization 2010-Rajasthan

Annexure D

Rajasthan: Interview Schedule For Dealers


(Dealers Using Mandatory Online Service)
Sl. No. State State Code District G. IDENTIFICATION DETAILS District Date of Interview (DD/MM) Distance from Ward Ofce (Km.) Code Phone Land : Mobile: Urban.2 TIN Respondents Name & Designation Supervisor Name Code Signature Division Division Code Town/Village Location of Ofce Code Rural..1

Address of Dealer with landmark

Interviewer Name Code Signature

Editor Name Code Signature

Circle Ward

Circle code Ward code

1B. Please specify the Constitution of your enterprise

H. DEALER PROFILE Proprietor.1 Partnership..2 Private Limited Company..3 Public Limited Company4 Hindu Undivided Family 5 Co-operative Society..6 Government Undertaking..7 Others (Specify)

2B. Please specify the type of business

34

Manufacture.1 Wholesale.2 Retail.3 Export...4 Hire Purchase..5 Works Contract....6 Leasing.7 Hotels8 Food & Drink.9 Others (Specify)

3B. What was the annual turnover in Financial Year: 200809 (INR)

___________ 34

As per Commercial Tax Department records

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Impact Assessment of Commercial Taxes Computerization 2010-Rajasthan

4B. Please give details of Commercial Taxes paid in Financial Year: 2008-09 (INR)

Tax

Registered

Amount Paid (INR)

VAT Yes-1 No-2 CST Yes-1 No-2 Entry Tax Others (Specify) 5B. Please specify the mode in which Books of Accounts are Manual .....1 maintained within the organization 6B. Number of staff in your organization who are involved in activities related to Commercial Taxes Computerized...2 Not maintained at all.3

1C.

I. AWARENESS AND USAGE OF ONLINE SERVICES Please specify the rst source of awareness about online Newspaper...1 services provided by Commercial Taxes Department Television.2 Other Dealers..3 CTPs....4 Commercial Tax Dep. Ofcial..5 Others (Specify) Application for Registration..1 Application for issue of forms.2 Application for refund....3 Filing Returns.4 Payment of Taxes.5 Information Dissemination6 Others (Specify) Online Service Registration (application) Filing Returns Payment of Taxes Application for Statutory Forms Seeking information Others (Specify)

2C.

Which are the online services provided by Commercial Taxes Department? (Multiple Responses)

3C.

Please give details regarding online services used and frequency of use Frequency of Use Fortnightly.1 Monthly. 2 Quarterly3 Annually..6 Others (Specify)

Used/Not Yes-1 No-2 Yes-1 No-2 Yes-1 No-2 Yes-1 No-2 Yes-1 Yes-1 No-2 No-2

Frequency

4C.

What are the reasons for using online service (s) (Multiple Responses)

Online process is faster ....1 Online process is more secure.2 Fewer errors in online process.3 Fewer visits to Commercial Taxes Department.4 Online process is more transparent.5 It is mandatory.6 Others (Specify)

J. TIME AND EFFORT AND COSTS OF AVAILING SERVICES Online Please provide the following details with reference to obtaining VAT Statutory Forms through online and manual modes: 1D. Date of obtaining VAT Statutory Forms specify month and year 2D. How many trips did you need to make to Commercial Tax Ofce for obtaining VAT Statutory Forms?

Manual

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Impact Assessment of Commercial Taxes Computerization 2010-Rajasthan

3D.

Purpose of each trip and time spent waiting at CTD Ofce (Including time spent in queue & transaction time at counter) for availing service (min) To submit documents1 To correct error in forms issued by CTD.2 To track application.............3 Others (Specify

Trip I II III IV V

Purpose

Time

Purpose

Time

4D.

Please see 2D if the number of trips is more than one, then ask: Why did you have to make more that one trip? It was required as per CTD procedure..1 To follow up, as there was delay on the part of CTD to provide service. 2 Could not avail service in previous visit (s) as there was a long queue. 3 Concerned functionary was not available4 Counter was not operational.........5 Documents/application submitted by me were incomplete6 Others (Specify)

5D.

Do you think you had to wait excessively for availing service in any of the trips? Yes 1 No 2 7D

6D.

Please specify the reasons for excessive wait Long queue....1 Ofcials of CTD are inefcient (slow in processing).2 Too many applicants at ofce.3 Badly managed queue.4 Some windows/counters were not operational...5 Power breakdown.6 Computer/network connectivity failure..7 Others (Specify)

7D. 8D. 9D.

Please specify the travel cost incurred in making a round trip to CTD Ofce (INR) Total travel cost incurred in availing service (number of trips X travel cost per trip) INR Please specify the travel time spent in making a round trip to CTD Ofce (Min.)

10D. Total travel time spent in availing service (number of trips X travel time per trip) Min.

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Impact Assessment of Commercial Taxes Computerization 2010-Rajasthan

11D. How many times did you log-in to download statutory forms? 12D. Please see the previous question if the number is more than one, then ask: Why did you have to log-in more than once? Service was not available as server was slow.1 Portal was undergoing maintenance..2 Others (Specify)

13D. What was the total time taken to download statutory forms? (Min) 14D. Do you think that the time taken to download statutory forms was excessive? 16 D Yes 1; No 2 15D. Why do you think are the reasons for excessive time in online transactions? Server is slow.1 Others (Specify) 16D. Please calculate the amount spent as salary/wages on total time spent in obtaining statutory forms: traveling time + waiting time + time for downloading (manhours spent X wage per man-hour) {INR} 17D. Service Charge paid to department for which you got a receipt? (INR) 18D. What was the total payment35 made by you for availing the service? (INR) 19D. What was the total elapsed time in availing service - how long did it take for obtaining statutory forms, right from the date of applying for it? (Hours) 20D. Did you pay a bribe directly to Ofcials? Part E Yes-1; No-2 21D. For what purpose did you pay the bribe? (Multiple responses) To expedite the process...1 Others (Specify) K. OVERALL ASSESSMENT On a 5 point scale (Dissatised-1; Somewhat dissatised-2; Neutral-3; Somewhat satised-4; Very satised-5) please rate the following attributes: Mode of Service (Online O, Manual M) O M Cost of availing service Overall experience of availing service from CTD Overall quality of service36 Clarity and simplicity of processes and procedures Transparency37 in CTD Predictability of outcome Ability to inuence policies, rules and procedures Mode of Service (Online O, Manual M) O M Time and effort in availing service Overall quality of governance Durability and legibility of statutory forms Accountability of Ofcials Knowledge of Ofcials Complaint handling mechanism38& problem resolution Convenience of location of center/ofce (accessibil-

through feedback ity and ambience) Courtesy and helpfulness of Ofcials Convenience of working hours Queuing system at CTD Ofce Level of corruption Adherence to Citizen Charter39 Dependence on CTPs Among the above given factors please list the three factors that you consider the most important RECORD THE S.NO. OF THE FACTOR

__________ 35 36

Includes a) amount paid to department for which receipt was given, and b) amount paid as bribe to department staff/functionaries Quality of service is understood as fairness, speed of processing, accuracy of transactions, legibility and durability of certicates and printouts, convenience of obtaining service 37 Understanding and awareness of the basis on which decisions affecting you/other users are taken by ofcials 38 Including service provided by Call centre/Helpline 39 Adherence of the time frame for service delivery (elapsed time) to that specied in citizens charter

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Impact Assessment of Commercial Taxes Computerization 2010-Rajasthan

1F.

B. SUGGESTIONS40 Please give your suggestions in improving online services: (Multiple Responses) Eliminate practice of submission of hard copy to CTD.....1 Server speed should be increased2 Tax Consultants should be allowed to make E-payment on behalf of their clients through Consultants Internet Banking A/C3 Maintenance of website should not be done during Ofce Hours of Traders/Tax Consultants...........4 CTD ofcials should be given adequate training, so that they can handle queries on online services efciently..5 Involve more Banks in E-payment.....6 Provide templates(w.r.t. returns) that can perform data verication ofine..........7 Changes in processes/templates should be immediately communicated to dealers.............8 Mistakes in database maintained by CTD w.r.t addresses of dealers should be rectied..............9 Others (Specify)

2F.

Please give your suggestions to increase use of online services: (Multiple Responses) Awareness campaigns on online services for dealers1 Establishment of Common Service Centres to facilitate E-services to all dealers.....2 Online processes should be made much more user friendly and simple........3 Others (Specify)

____________ 40

This part is for all users - manual and online

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Impact Assessment of Commercial Taxes Computerization 2010-Rajasthan

Annexure E

Rajasthan: Interview Schedule For CTP


(CTPs Using Optional Online Services)
M. IDENTIFICATION DETAILS
Sl. No. State State Code District District Code Address with landmark Town/ Village Location of Ofce Code Rural..1 Date of Interview (DD/MM) Respondents Name

Urban.2 Phone Land Line : Interviewer Name Mobile: Editor Name Supervisor Name Comparison (manual)2 Distance from Ward Ofce (Km.) Group Treatment (online)..1
41

Division Circle

Division Code Circle code

Code Signature

Code Signature

Code Signature

Ward

Ward code

1B. Educational qualication of Tax Consultant

N. Prole of Tax Consultant FICA. - 1 LLB - 2 Others (Specify)

2B. Years of Experience as Tax Consultant 3B. What was the annual turnover in Financial Year: 2008-09 (INR) 4B. Major services provided to clients (only those for which service charge is taken), service charge (average) SERVICE Registration 1; Filing Returns 2; Others Specify. TAX VAT -1; CST 2; Others (Specify) Tax Service Service Charge (INR) Manual Online

5B. Number of staff in your organization who are involved in activities related to Commercial Taxes 6B. Is the Tax Consultant computer literate? Yes 1 No - 2
____________ 41

Part C

As per the listing exercise

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Impact Assessment of Commercial Taxes Computerization 2010-Rajasthan

7B. Has the Tax Consultant used any online E-Gov. service

Yes 1 No - 2

O. AWARENESS AND USAGE OF ONLINE SERVICES 1C. Are you aware of online services provided by Commercial Taxes Yes - 1 Department? 2C. Please specify the rst source of awareness about online services provided by Commercial Taxes Department Part D No - 2 Newspaper...1 Television.2 Dealers.....3 Other CTPs.....4 Commercial Tax Dep. Ofcial...5 Others (Specify) 3C. Which are the online services provided by Commercial Taxes Department? (Multiple Responses) Application for Registration....1 Application for issue of forms2 Application for refund...3 Filing Returns4 Payment of Taxes5 Information Dissemination..6 Others (Specify) 4C. Have you used any of the online services provided by Commercial Taxes Department? 5C. Please give details regarding online services used and frequency of use Frequency of Use Daily..1 Weekly..2 Fortnightly.3 Monthly. 4 Quarterly5 Annually..6 Others (Specify) 6C. What are the reasons for using online service (s) (Multiple Responses) Online process is faster .......1 Online process is more secure.....2 Fewer errors in online process.....3 Fewer visits to Commercial Taxes Department.......4 PLEASE PROCEED TO PART D AFTER ANSWERING THIS Online process is more transparent......5 QUESTION It is mandatory.6 Others (Specify) Yes 1 7C No 2 Online Service Registration (application) Filing Returns Payment of Taxes Application for Forms Seeking information Others (Specify) Used/Not Yes-1 Yes-1 Yes-1 Yes-1 Yes-1 Yes-1 No-2 No-2 No-2 No-2 No-2 No-2 Frequency

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Impact Assessment of Commercial Taxes Computerization 2010-Rajasthan

7C. What are the reasons for not using online service (Multiple responses)

Do not have skills to use online services....1 Do not have access to hardware/software.....2 Do not have access to internet....3 Unreliable power situation....4 Online process is prone to errors....5 Online process is not secure.......6 Online process is slow..7 Have to submit hard copy to Ofce.8 Others (Specify)

P. TIME AND EFFORT AND COSTS OF AVAILING SERVICES Please provide the following details with reference to maximum of two services that you have availed from Commercial Tax Department in last 90 days Services Availed in Last 90 Days: (Only Online services for Treatment Group and 38D. only Manual Services for Comparison Group) Filing Returns1 Payment..........2 Registration...............3 Refund..........4 Submission of declaration form........................5 Seeking information (including application tracking)6 39D. 40D. Mode of service: Online 1; Manual 2 Was the online service availed mandatory/optional w.r.t client? Mandatory 1; Optional 2 [NOT APPLICABLE FOR MANUAL USERS] D-1: Time and Effort and Cost of Preparation of Documents 41D. 12D

(This section is not applicable for Services: Payment and Seeking Information) How many man-hours were spent in completing various forms and preparing supporting documents for manual ling of returns/payment? PLEASE NOTE THAT THIS COULD BE APPLICABLE FOR ONLINE USERS AS WELL - MANY OF THEM ARE REQUIRED TO FILE HARD COPIES,

42D. 43D. 44D. 45D. 46D. 47D.


____________ 42 43

EVEN AFTER FILING RETURNS ONLINE How many man-hours were spent for data entry in online template? (NOT APPLICABLE FOR MANUAL USERS) Total man-hours spent for preparation of documents for ling returns/payment (6D + 7D) Please calculate the amount spent as salary/wages for preparation of documents for ling returns/payment (Total man-hours spent X wage per man-hour) {INR} Cost of stationery42 and photo copies w.r.t ling returns/payment {INR} Cost of access to Internet43 (INR) (NOT APPLICABLE FOR MANUAL USERS) Cost of Statutory Forms and other Forms including courier charges (INR)

Ledgers, CDs, printing paper, printing ink, carbon paper etc. Internet charges based on hours of internet used for this particular service

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Impact Assessment of Commercial Taxes Computerization 2010-Rajasthan

48D. 49D. 50D.

Total cost of preparation of documents for ling returns/payment (INR) D- 2: Time and Effort and Cost of Availing Services From Commercial Taxes Department How many trips did you need to make for the service including trips for error correction? Purpose of each trip and time spent waiting (Including time spent in queue and transaction time at counter ) for availing service - (min) To submit documents.......1 To collect certicate.........2 To correct error in certicate/document issued by CTD..........3 To correct errors in documents submitted by Dealer/Tax Consultant..4 To track application5 To seek information6 To bank/treasury for making payment - Challan (applicable only for payment).............................................................................................7 To fulll requirement of physical presence.8 Others (Specify) Please see 12D if the number of trips is more than one, then ask: Why did you have to make more that one trip? Trip I II III IV V Purpose Time Purpose Time

51D.

It was required as per CTD procedure..1 To follow up, as there was delay on the part of CTD to provide service.2 Could not avail service in previous visit (s) as there was a long queue..3 Concerned functionary was not available4 Counter was not operational............5 Documents/application submitted by me were incomplete...6 Others (Specify) 52D. Do you think you had to wait excessively for availing service in any of the trips?

Yes 1 53D. 17D No 2 Please specify the reasons for excessive wait Long queue.1 Ofcials of CTD are inefcient (slow in processing).2 Processes are too complex & takes lot of time to complete...3 Too many applicants at ofce........4 Badly managed queue5 Some windows/counters were not operational..........6 Power breakdown.7 Computer/network connectivity failure.8 54D. Others (Specify) Please specify the travel cost incurred in making a round trip to CTD Ofce (INR)

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Impact Assessment of Commercial Taxes Computerization 2010-Rajasthan

55D. 56D. 57D. 58D. 59D. 60D. 61D.

Please specify the travel cost incurred in making a round trip to Bank/Treasury (INR) (APPLICABLE ONLY FOR PAYMENT) Total travel cost incurred in availing service (number of trips X travel cost per trip) INR Please specify the travel time spent in making a round trip to CTD Ofce (Min.) Please specify the travel time spent in making a round trip to Bank/Treasury (Min.) (APPLICABLE ONLY FOR PAYMENT) Total travel time spent in availing service (number of trips X travel time per trip) Min. How many times did you log-in to avail online service? [NOT APPLICABLE FOR MANUAL USERS] Please see the previous question if the number is more than one, then ask: Why did you have to log-in more than once? [NOT APPLICABLE FOR MANUAL USERS]

Service was not available as server was slow.1 Portal was undergoing maintenance..2 Templates had changed, therefore it had to be downloaded rst3 62D. Others (Specify) What was the total time taken to complete transaction Online - it does not include time taken for data entry? (Min) [NOT APPLICABLE FOR MANUAL USERS] 63D. Do you think that the time taken to complete online transaction was excessive? Yes 1; No 2 64D. 28D [NOT APPLICABLE FOR MANUAL USERS]

Why do you think are the reasons for excessive time in online transactions? Server is slow.1 Processes are complex and time consuming2 Errors occur while uploading template3 Others (Specify)

65D.

Please calculate the amount spent as salary/wages on total time spent in availing service: traveling time + waiting time + time for online transaction (man-hours spent X wage per man-hour) {INR}

THIS DOES NOT INCLUDE TIME TAKEN FOR FILLING FORMS, PREPA66D. 67D. 68D. RATION OF SUPPORTING DOCUMENTS AND DATA ENTRY Service Charge paid to CTD for which you got a receipt (INR) What was the total payment44 made by you for availing the service? (INR) What was the total elapsed time in availing service - how long did it take for the task to Manual Probe completed, right from the date of applying to actually receiving the service applied for? (this does not include time taken for lling forms, preparation of supporting documents and data entry)? (Hours) Total IN CASE OF ONLINE USERS, TOTAL ELAPSED TIME IS THE TIME TAKEN TO COMPLETE THE TRANSACTION ONLINE PLUS TIME SPENT TO SUBMIT HARD COPIES TO CTD
____________ 44

Manual Process

cess Online Process Online Process Total

Includes a) amount paid to department for which receipt was given, and b) amount paid as bribe to department staff/functionaries

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Impact Assessment of Commercial Taxes Computerization 2010-Rajasthan

69D. 70D.

Did you pay a bribe directly to Ofcials? Part E Yes-1; No-2 For what purpose did you pay the bribe indicated in the previous question?

(Multiple responses) To avoid audit assessment by CT Department.1 To inuence functionaries to manipulate records in your favor..2 To expedite the process...3 Others (Specify) Q. OVERALL ASSESSMENT On a 5 point scale (Dissatised-1; Somewhat dissatised-2; Neutral-3; Somewhat satised-4; Very satised-5) please rate the following attributes (Online services for Treatment Group and Manual services for Comparison Group) 1E. 3E. 4E. Time and effort in ling returns FILING OF RETURNS 2E. Cost incurred in ling returns

Design and layout of forms (templates in case of online services) Time and effort in tax payment PAYMENT OF TAX 5E. Security of monetary transactions COMMON ATTRIBUTES

6E. 8E. 10E. 12E. 14E. 16E. 18E. 20E. 22E. 24E. 26E. 28E.

Overall quality of service45

(Applicable For All Services) 7E. Overall quality of governance46 9E. Accuracy of transactions 11E. Time and effort in procuring forms 13E. Predictability of outcome 15E. Accountability of Ofcials 17E. Knowledge of Ofcials 19E. Level of corruption48 21E. Problem resolution49 23E. Convenience of working hours50 25E. Convenience of location of ofce (accessibility and ambience)

Overall experience of availing service from CTD Condentiality and security of data Time and effort in accessing information Clarity and simplicity of processes and procedures Transparency47 in CTD Ability to inuence policies, rules and procedures through feedback Courtesy and helpfulness of Ofcials Complaint handling mechanism (including service provided by Call centre/Helpline) Queuing system at CTD Ofce
51

Adherence to Citizen Charter 27E. Durability and legibility of certicates/receipts Among the above given factors please list the three factors that you consider the most important RECORD THE S.NO. OF THE FACTOR

____________ 45 Quality of service is understood as fairness, speed of processing, accuracy of transactions, legibility and durability of certicates and printouts, convenience of obtaining service 46 Governance is understood as transparency, accountability and corruption-free working 47 Understanding and awareness of the basis on which decisions affecting you/other users are taken by ofcials 48 Very corrupt-1; Somewhat corrupt-2; Neutral-3; Somewhat less corrupt-4; Not at all corrupt-5 49 Mechanism to rectify inadvertent errors in forms/documents submitted by Dealers to CTD e.g. computational errors/wrong gures 50 Hours of service in case of online services 51 Adherence of the time frame for service delivery (elapsed time) to that specied in citizens charter

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Impact Assessment of Commercial Taxes Computerization 2010-Rajasthan

1F.

C. SUGGESTIONS52 Please give your suggestions in improving online services: (Multiple Responses)

Eliminate practice of submission of hard copy to CTD.....a Server speed should be increased...b Tax Consultants should be allowed to make E-payment on behalf of their clients through Consultants Internet Banking A/C...................................................................................................................................................c Maintenance of website should not be done during Ofce Hours of Traders/Tax Consultants......d CTD ofcials should be given adequate training, so that they can handle queries on online services efciently..e Involve more Banks in E-payment...f Provide templates(w.r.t. returns) that can perform data verication ofine....g Changes in processes/templates should be immediately communicated to dealers....h Others (Specify) 2F. Please give your suggestions to increase use of online services: (Multiple Responses)

Awareness campaigns on online services for dealers..a Establishment of Common Service Centres to facilitate E-services to all dealers.......b Online processes should be made much more user friendly and simple.....c Others (Specify)

____________ 52

This part is for all users - manual and online

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Impact Assessment of Commercial Taxes Computerization 2010-Rajasthan

Annexure F

Rajasthan: Interview Schedule For CTP


(CTPs Using Mandatory Online Service)
Sl. No. State State Code S. IDENTIFICATION DETAILS District District Code Date of Interview (DD/MM) Distance from Ward Ofce (Km.) Address with landmark Town/Village Urban.2 Phone Land Line: Interviewer Name Code Signature Mobile: Editor Name Code Signature Respondents Name & Designation Supervisor Name Code Signature T. Prole of Tax Consultant FICA. - 1 LLB - 2 Others (Specify) Years of Experience as Tax Consultant What was the annual turnover in Financial Year: 2008-09 (INR) Major services provided to clients (only those for which service charge is taken), service charge (average) SERVICE Registration 1; Filing Returns 2; Others Specify. TAX VAT -1; CST 2; Others (Specify) Number of staff in your organization who are involved in activities related to Commercial Taxes Is the Tax Consultant computer literate? Yes 1 No - 2 Has the Tax Consultant used any online E-Gov. service Yes 1 No - 2 U. AWARENESS AND USAGE OF ONLINE SERVICES 1C. Please specify the rst source of awareness about online Newspaper...1 services provided by Commercial Taxes Department Television.2 Dealers....3 Other CTPs....4 Commercial Tax Dep. Ofcial..5 Others (Specify) Part C Circle Ward Division Division Code Circle code Ward code Location of Ofce Code Rural..1

Educational qualication of Tax Consultant

Tax

Service

Service Charge (INR) Manual Online

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Impact Assessment of Commercial Taxes Computerization 2010-Rajasthan

2C. Which are the online services provided by Commercial Taxes Department? (Multiple Responses)

Application for Registration....1 Application for issue of forms2 Application for refund...3 Filing Returns4 Payment of Taxes5 Information Dissemination..6 Others (Specify)

3C. Please give details regarding online services used and frequency of use Frequency of Use Daily..1 Weekly..2 Fortnightly.3 Monthly. 4 Quarterly5 Annually..6 Others (Specify) 4C. What are the reasons for using online service (s) (Multiple Responses)

Online Service Registration (application) Filing Returns Payment of Taxes Application for Statutory Forms Seeking information Others (Specify)

Used/Not Yes-1 Yes-1 Yes-1 Yes-1 No-2 No-2 No-2 No-2

Frequency

Yes-1 Yes-1

No-2 No-2

Online process is faster ....1 Online process is more secure..2 Fewer errors in online process..3 Fewer visits to Commercial Taxes Department.4 Online process is more transparent.5 It is mandatory.6 Others (Specify)

V. TIME AND EFFORT AND COSTS OF AVAILING SERVICES Please provide the following details with reference to obtaining VAT Statutory Forms through online and manual modes: 22D. Date of availing service specify month and year 23D. How many trips did you need to make to Commercial Tax Ofce for obtaining VAT Statutory Forms? 24D. Purpose of each trip and time spent waiting at CTD Ofce (Including time spent in queue & transaction time at counter) for availing service - (min) Trip I II III To submit documents....1 To correct error in forms issued by CTD....2 To track application3 Others (Specify) IV V Purpose Time Purpose Time Online Manual

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Impact Assessment of Commercial Taxes Computerization 2010-Rajasthan

25D. Please see 2 D if the number of trips is more than one, then ask: Why did you have to make more that one trip? It was required as per CTD procedure..1 To follow up, as there was delay on the part of CTD to provide service2 Could not avail service in previous visit (s) as there was a long queue3 Concerned functionary was not available4 Counter was not operational..5 Documents/application submitted by me were incomplete6 Others (Specify) 26D. Do you think you had to wait excessively for availing service in any of the trips? Yes 1 No 2 13D

27D. Please specify the reasons for excessive wait Long queue.1 Ofcials of CTD are inefcient (slow in processing).2 Too many applicants at ofce.3 Badly managed queue.4 Some windows/counters were not operational..5 Power breakdown........6 Computer/network connectivity failure.7 Others (Specify) 28D. Please specify the travel cost incurred in making a round trip to CTD Ofce (INR) 29D. Total travel cost incurred in availing service (number of trips X travel cost per trip) INR 30D. Please specify the travel time spent in making a round trip to CTD Ofce (Min.) 31D. Total travel time spent in availing service (number of trips X travel time per trip) Min. 32D. How many times did you log-in to download statutory forms? 33D. Please see the previous question if the number is more than one, then ask: Why did you have to log-in more than once? Service was not available as server was slow.1 Portal was undergoing maintenance..2 Others (Specify)

34D. What was the total time taken to download statutory forms? (Min) 35D. Do you think that the time taken to complete online transaction was excessive? Yes 1; No 2 22 D

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Impact Assessment of Commercial Taxes Computerization 2010-Rajasthan

36D. Why do you think are the reasons for excessive time in online transactions?

Server is slow.1 Others (Specify) 37D. Please calculate the amount spent as salary/wages on total time spent in availing service: traveling time + waiting time + time for downloading (man-hours spent X wage per man-hour) {INR} 38D. Service Charge paid to department for which you got a receipt? (INR) 39D. What was the total payment53 made by you for availing the service? (INR) 40D. What was the total elapsed time in availing service - how long did it take for obtaining statutory forms, right from the date of applying for it? (Hours) 41D. Did you pay a bribe directly to Ofcials? Yes-1; No-2 Part E

42D. For what purpose did you pay the bribe indicated in the previous question? (Multiple rsp.) To expedite the process..1 Others (Specify)

W. OVERALL ASSESSMENT On a 5 point scale (Dissatised-1; Somewhat dissatised-2; Neutral-3; Somewhat satised-4; Very satised-5) please rate the following attributes: Mode of Service (Online O, Manual M) O M 1E. Cost of availing service 3E. Overall experience of availing service from CTD 5E. 7E. Overall quality of service54 Clarity and simplicity of processes and proceMode of Service (Online O, Manual M) Time and effort in availing service Overall quality of governance Durability and legibility of statutory forms Accountability of Ofcials O M

2E. 4E. 6E. 8E.

dures 9E. Transparency55 in CTD 11E. Predictability of outcome 13E. Ability to inuence policies, rules and procedures through feedback 15E. Courtesy and helpfulness of Ofcials 17E. Queuing system at CTD Ofce 19E. Adherence to Citizen Charter57 RECORD THE S.NO. OF THE FACTOR

10E. Knowledge of Ofcials 12E. Complaint handling mechanism56 & problem resolution 14E. Convenience of location of center/ofce (accessibility and ambience) 16E. Convenience of working hours 18E. Level of corruption 20E. Dependence on Ofcials

21E. Among the above given factors please list the three factors that you consider the most important

____________ 53 54

Includes a) amount paid to department for which receipt was given, and b) amount paid as bribe to department staff/functionaries Quality of service is understood as fairness, speed of processing, accuracy of transactions, legibility and durability of certicates and printouts, convenience of obtaining service 55 Understanding and awareness of the basis on which decisions affecting you/other users are taken by ofcials 56 Including service provided by Call centre/Helpline 57 Adherence of the time frame for service delivery (elapsed time) to that specied in citizens charter

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Impact Assessment of Commercial Taxes Computerization 2010-Rajasthan

1F.

D. SUGGESTIONS58 Please give your suggestions in improving online services: (Multiple Responses) Eliminate practice of submission of hard copy to CTD...............1 Server speed should be increased...............2 Tax Consultants should be allowed to make E-payment on behalf of their clients through Consultants Internet Banking A/C.................................................................................................................3 Maintenance of website should not be done during Ofce Hours of Traders/Tax Consultants..........4 CTD ofcials should be given adequate training, so that they can handle queries on online services efciently..5 Involve more Banks in E-payment......6 Provide templates(w.r.t. returns) that can perform data verication ofine....7 Changes in processes/templates should be immediately communicated to dealers.........8 Mistakes in database maintained by CTD w.r.t addresses of dealers should be rectied9

Others (Specify)

2F.

Please give your suggestions to increase use of online services: (Multiple Responses) Awareness campaigns on online services for dealers..1 Establishment of Common Service Centres to facilitate E-services to all dealers...2 Online processes should be made much more user friendly and simple.....3

Others (Specify)

____________ 58

This part is for all users - manual and online

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Impact Assessment of Commercial Taxes Computerization 2010-Rajasthan

Annexure G

Field Work
At the Ward Level, two locations selected on the basis on their distance from Ward Ofce one far and the other near. List of Dealers in the selected locations was collected from CTD Dealers were randomly selected from the list. Number of dealers selected was about 10% more than the number of dealers to be interviewed in that Ward as dealers who outsource entire processes to CTPs could not be included in the study. Listing exercise was carried out among selected dealers, which allowed us in collecting information such as turnover, services availed, mode used, dependence on CTPs etc. Based on information gathered through listing exercise, Dealers were classied as respondents for either Optional Online Services (treatment/control group) or Mandatory Online Services (recall method). Similarly, CTPs were also be classied as respondents for Optional Online Services and Mandatory Online Services. Contact details of CTPs were collected through listing exercise among Dealers

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Impact Assessment of Commercial Taxes Computerization 2010-Rajasthan

Annexure H

Rajasthan: Dealers Using Optional Online Services

SECTION A: Identication Details


Table 1: Group wise frequency Group Treatment (Online) Comparison (Manual) Total Frequency 253 250 503 Percent 50.3 49.7 100.0

Table 2: Division and circle wise frequency Division Circle A J Rajasthan Special Special 2 Special 8 D Total A B Special Special 2 Total A B Jhunjhunu Churu C Total A B C Special Total Treatment (Online) 35 24 18 18 18 30 143 11 12 12 12 47 10 7 8 8 2 35 8 8 5 7 28 Comparison (Manual) 28 33 9 18 18 36 142 12 12 12 11 47 8 9 8 8 4 37 7 9 3 5 24 Total 63 57 27 36 36 66 285 23 24 24 23 94 18 16 16 16 6 72 15 17 8 12 52

Jaipur II

Kota

Bikaner

Udaipur

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Impact Assessment of Commercial Taxes Computerization 2010-Rajasthan

Table 3: Location and group wise frequency Location Treatment (Online) 2 .8% 251 99.2% 253 100.0% Comparison (Manual) 0 .0% 250 100.0% 250 100.0% Total 2 .4% 501 99.6% 503 100.0%

Rural Urban Total

\ SECTION B: Dealer Prole


Table 4: Constitution of enterprise Constitution of enterprise Treatment (Online) 132 52.2% 50 19.8% 57 22.5% 10 4.0% 3 1.2% 1 .4% 253 100.0% Comparison (Manual) 163 65.2% 51 20.4% 28 11.2% 6 2.4% 1 .4% 1 .4% 250 100.0% Total 295 58.6% 101 20.1% 85 16.9% 16 3.2% 4 .8% 2 .4% 503 100.0%

Proprietor Partnership Private Limited Company Public Limited Company Hindu Undivided Family Co-op society Total

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Impact Assessment of Commercial Taxes Computerization 2010-Rajasthan

Table 5: Type of business Type of business Manufacture Wholesale Retail Export Work contract Hotels Food & Drink C & F Agent Others Total Treatment (Online) 46 18.2% 159 62.8% 34 13.4% 8 3.2% 1 .4% 2 .8% 1 .4% 1 .4% 1 .4% 253 100.0% Comparison (Manual) 33 13.2% 153 61.2% 57 22.8% 4 1.6% 0 .0% 0 .0% 2 .8% 1 .4% 0 .0% 250 100.0% Total 79 15.7% 312 62.0% 91 18.1% 12 2.4% 1 .2% 2 .4% 3 .6% 2 .4% 1 .2% 503 100.0%

Table 6: VAT registration Registered for VAT Yes Total Treatment (Online) 253 100.0% 253 100.0% Comparison (Manual) 250 100.0% 250 100.0% Total 503 100.0% 503 100.0%

Table 7: CST registration Registered for CST Yes No Total Treatment (Online) 38 15.0% 215 85.0% 253 100.0% Comparison (Manual) 44 17.6% 206 82.4% 250 100.0% Total 82 16.3% 421 83.7% 503 100.0%

407

Impact Assessment of Commercial Taxes Computerization 2010-Rajasthan

Table 8: Mode of maintenance of books of accounts Mode in which Books of Accounts are maintained within the organization Manual Computerized Total 21 8.3% 232 91.7% 253 100.0% 127 50.8% 123 49.2% 250 100.0% 148 29.4% 355 70.6% 503 100.0% Treatment (Online) Comparison (Manual) Total

Table 9: Number of staff involved in activities w.r.t Commercial Taxes Number of staff in the organization involved in activities related to Commercial Taxes 1 2 3 4 Total 188 74.3% 46 18.2% 13 5.1% 6 2.4% 253 100.0% 198 79.2% 42 16.8% 5 2.0% 5 2.0% 250 100.0% 386 76.7% 88 17.5% 18 3.6% 11 2.2% 503 100.0% Treatment (Online) Comparison (Manual) Total

SECTION C: Awareness and Usage of Online Services


Table 10: Awareness on online services Aware of Online services of CTD Yes No Total Treatment (Online) 253 100.0% 0 .0% 253 100.0% Comparison (Manual) 131 52.4% 119 47.6% 250 100.0% Total 384 76.3% 119 23.7% 503 100.0%

408

Impact Assessment of Commercial Taxes Computerization 2010-Rajasthan

Table 11: First source of awareness First source of awareness about online services Newspaper Television Dealers CTPs CTD Ofcial Friend Total Treatment (Online) 70 27.7% 5 2.0% 4 1.6% 108 42.7% 66 26.1% 0 .0% 253 100.0% Table 12: Awareness on online services Online services of CTD Application for Registration Application for issue of CST forms Application for refund Filing Returns Payment of Taxes Information Dissemination Declaration Form Total Treatment (Online) 109 43.1% 82 32.4% 54 21.3% 245 96.8% 149 8.9% 145 57.3% 1 .4% 253 Table 13: Usage of online services Used any of the online services provided by CTD Yes No Total Treatment (Online) 253 100.0% 0 .0% 253 100.0% Comparison (Manual) 0 .0% 131 100.0% 131 100.0% Total 253 65.9% 131 34.1% 384 100.0% Comparison (Manual) 31 23.7% 30 22.9% 20 15.3% 123 93.9% 65 49.6% 38 29.0% 0 .0% 131 Total 140 112 74 368 214 183 1 384 Comparison (Manual) 45 34.4% 6 4.6% 4 3.1% 45 34.4% 30 22.9% 1 .8% 131 100.0% Total 115 29.9% 11 2.9% 8 2.1% 153 39.8% 96 25.0% 1 .3% 384 100.0%

409

Impact Assessment of Commercial Taxes Computerization 2010-Rajasthan

Table 14: Reasons for using online services Reasons for using e-services Online process is faster Online process is more secure Fewer errors in online process Fewer visits to commercial taxes department Online process is more transparent It is mandatory Stationery expense can be saved No need to visit Bank Can avail services from home Total Treatment (Online) 182 71.9% 89 35.2% 61 24.1% 161 63.6% 36 14.2% 44 17.4% 1 .4% 2 .8% 1 .4% 253 Table 15: Reasons for not using online services Reasons for not using e-services Do not have skills to use online services Do not have access to hardware/software Do not have access to internet Unreliable power situation Online process is prone to errors Online process is not secure Online process is slow Have to submit hard copy to ofce Others Total Comparison (Manual) 87 66.4% 33 25.2% 24 18.3% 1 .8% 50 38.2% 5 3.8% 18 13.7% 44 33.6% 1 .8% 131 Total 87 33 24 1 50 5 18 44 1 131 Total 182 89 61 161 36 44 1 2 1 253

Note: 47.6% of the respondents in comparison group were not aware of online services (Please see table on Q1C). The above given table given table (Q7C) pertains to only those respondents in the comparison group who do not use online services despite being aware of it.

410

Impact Assessment of Commercial Taxes Computerization 2010-Rajasthan

SECTION D: Time and Effort and Costs of Availing Services


Table 16: Services Availed in Last 90 Days and Mode of service Services Availed in Last 90 Days Filing returns Payment Seeking Information (including application tracking) Total Q2D A Mode of service Online Manual 205 248 5 2 43 0 253 250 Total 453 7 43 503

Table 17: Services Availed in Last 90 Days and Mode of service Services Availed in Last 90 Days Payment Seeking Information (including application tracking) Total Q2D B Mode of service Online Manual 18 32 50 128 0 128 Total 146 32 178

The tables given above show that there were sufcient responses for the service: Filing of returns (Online 205 and Manual 248) and therefore Independent Samples T Test has been used to analyze this. However, for the remaining two services: Payment and Seeking Information, the number of responses were insufcient to carry out analysis there were only 23 responses on Online Payment and nil response in the case of Seeking Information (Manual).

Table 18: Time and cost of Filing of Returns ComputerManual Change Signiized (C-M) cance Time and Cost of Preparation of Documents for Filing of Returns Man-hours were spent in compiling data 7.9732 6.3770 1.59615 * N 205 248 S.E. .83423 .32865 Mode 2.00 4.00 Comment: Observation made in the eld reveals that the time required to compile data is directly proportional to turnover of organization. Dealers ling online returns had higher turnover than manual dealers and therefore they spent more man-hours in compiling data. This difference is not due to the mode of service used (Online/Manual). Man-hours were spent for data entry in online template 2.51 NA N 205 S.E. .28 Mode 1.00 Total man-hours for preparation of documents 10.4935 6.3810 4.11242 ** N 205 248 S.E. .98724 .32846 Mode 3.00 4.00 Filing Returns

411

Impact Assessment of Commercial Taxes Computerization 2010-Rajasthan

ComputerManual Change Signiized (C-M) cance Comment: When compared to manual users, we nd that online users have to do more work they have to compile data (like manual users) plus they have to enter data in online template. In the case of manual users data entry is done by CTD after manual returns are submitted to Ofce. Filing Returns CTD has beneted from online service they do not have to do data entry (thus saving time and cost) and they can hold dealers responsible for data entry errors (in manual mode, data entry is done by CTD and therefore they cannot hold dealers responsible for data entry errors). Salary/wages for preparation of documents (INR) 383.51 197.40 186.117 ** N 205 248 S.E. 43.520 17.650 Mode 50 50 Comment: Salary/wages for preparation of documents is directly proportional to man-hours spent for it. Man-hours spent for preparation of documents is higher for online users and therefore the salary/wages spent is also higher for them Cost of stationery for preparation of documents (INR) 62.20 79.25 -17.049 ** N 205 248 S.E. 6.173 5.634 Mode 50 100 Comment: Manual users have spent signicantly more on stationery because they have to enter all details on paper. Online users, however, spent less because most details are entered on online template. Cost of access to Internet (INR) NA 46 N 205 S.E. 2 Mode 50 Cost of Statutory Forms and other Forms including courier 21.85 30.26 -8.404 * charges (INR) N 205 248 S.E. 3.129 3.631 Mode 0 0 Comment: Online users are exempted from submitting some forms manually as they enter details on online template (However, they have to submit CST forms manually). Manual users, on the other hand, have to submit all forms manually. Service charge paid to Tax Consultant for preparation of 841.69 718.81 122.883 NS documents(INR) N 170 191 S.E. 66.599 42.145 Mode 500 500 Total cost of preparation of documents (INR) 1211.1317 860.3024 350.82929 ** N 205 248 S.E. 73.17526 44.32107 Mode 850.00 1100.00 Comment: Total cost of preparation of documents for online users is signicantly higher than that of manual users. This is mainly because online users have to do data entry on online template. It may be noted that most online users maintain accounts on their computers and therefore dealers have suggested that the online template should be made compatible with popular accounting software (e.g. Tally) so that data could be directly copied to the online template thus avoiding data entry.

412

Impact Assessment of Commercial Taxes Computerization 2010-Rajasthan

Computerized Manual Change (C-M) Signicance Time and Cost of Availing Services From Commercial Taxes Department 1.11 1.19 -.082 * Number of trips 205 248 N .038 .030 S.E. 1 1 Mode Comment: Both manual and online users have to make at least one trip to CTD ofce. Manual users, however, had to Filing Returns make more number of trips when compared to online users. 53.6585 Waiting time (Minutes) 205 N 5.12658 S.E. 30.00 Mode 66.31 Travel cost (INR) 202 N 4.452 S.E. 50 Mode 66.90 Travel time (Minutes) 202 N 4.254 S.E. 60 Mode 2 Number of times user had to log-in to avail online service N S.E. Mode Total time taken to complete transaction Online 205 0 1 31 56.7540 248 2.67069 30.00 63.93 248 2.856 50 77.00 248 4.017 60 NA -3.09550 NS

2.375

NS

-10.100

NA

(Minutes) 205 N 1 S.E. 30 Mode Comment: According to many online users the server was slow due to which the time taken to complete online transaction was excessive. Yet another problem pointed out by users is that while uploading the online template, if there is an error (usually syntax error), the online application will not accept the template. Consequently the user has to rectify the error and upload the template yet again. This leads to wastage of time many dealers therefore suggest that the template should be designed to detect errors during data entry stage itself, so that time is not wasted while uploading the template. Amount spent as salary/wages on total time spent 109.67 68.81 40.858 **

in availing service (INR) 205 248 N 10.031 6.082 S.E. 50 25 Mode Comment: The difference seen is mainly because online users have to submit hard copy to CTD for which they have to make at least one trip and also spent time for online transaction. Besides, the wages of employees who are doing online transactions could be higher than that of employees that do manual transactions as using online services require higher skill level. Service Charge paid to department (INR) N S.E. Mode Service charge paid to Tax Consultant for facilitating service from CTD Ofce (INR) N S.E. Mode 0 205 0 0 503.13 170 76.307 0 0 248 0 0 360.81 192 34.559 0

142.322

413

Impact Assessment of Commercial Taxes Computerization 2010-Rajasthan

Filing Returns Computerized Manual Change (C-M) Signicance Comment: The difference seen cannot be attributed to the mode of service used because submitting hard copy of online dealers is easier than submitting returns of manual dealers (hard copies of online dealers are not scrutinized). Therefore the difference in service charge paid could be because of the size of dealers - online dealers have higher turnover than manual dealers - tax consultants tend to charge more from large dealers. Amount paid as bribe (INR) N S.E. Mode Total payment made (INR) N S.E. Mode 33.0780 205 11.77672 .00 450.31 205 65.014 0 28.6290 248 11.24566 .00 307.96 248 29.763 0 142.344 ** 4.44902 NS

Comment: The difference in total payment made is mainly due to the service charge paid to CTP as there is no service charge and there is no signicant difference between online and manual modes in terms of amount of bribe paid. It was explained earlier that the difference in service charge paid to CTP cannot be attributed to mode of service used. Consequently the difference in total payment made also cannot be attributed to the mode of service used. Time in availing service through Manual process .8618 2.5041 -1.64231 (Hours) N 205 248 S.E. .12019 .37448 Mode

**

.50 .50 Comment: Returns submitted by online users are not scrutinized as they have already submitted it online, while that of manual users are scrutinized hence the difference. Time in availing service through Online process (Hours) N S.E. Mode Total elapsed time in availing service (Hours) N S.E. Mode .7437 205 .05519 .50 1.6055 205 .14730 1.00 2.5175 248 .37553 .50 -.91203 ** NA

Comment: Total elapsed time is signicantly lower for online service

414

Impact Assessment of Commercial Taxes Computerization 2010-Rajasthan

OTHER TABLES: Time and Cost of Filing Returns


Table 19: Dependence on CTP Processes related to the service outsourced Treatment (Online) 35 17.1% 170 82.9% 205 100.0% Comparison (Manual) 56 22.6% 192 77.4% 248 100.0% Total 91 20.1% 362 79.9% 453 100.0%

No, it was done completely in-house Yes, it was partially done by CTP Total

Table 20: Dependence on CTP Reasons for depending on CTP Due to lack of sufcient knowledge on processes To ensure accuracy of data given to department Want to avoid interface with Dep. ofcials Do not want to spent time on this Others Total Treatment (Online) 139 81.8% 60 35.3% 18 10.6% 23 13.5% 2 1.2% 170 Comparison (Manual) 171 89.5% 75 39.3% 12 6.3% 30 15.7% 0 .0% 191 Total 310 135 30 53 2 361

Table 21: Number of trips Number of trips need to make for the service Treatment (Online) 3 1.5% 184 89.8% 15 7.3% 2 1.0% 1 .5% 205 100.0% Comparison (Manual) 0 .0% 208 83.9% 34 13.7% 5 2.0% 1 .4% 248 100.0% Total 3 .7% 392 86.5% 49 10.8% 7 1.5% 2 .4% 453 100.0%

0 1 2 3 4 Total

415

Impact Assessment of Commercial Taxes Computerization 2010-Rajasthan

Table 22: Reasons for making more than one trip Reasons to make more that one trip? It was required -as per CTD procedure To follow up, a there was delay n the part of CTD to provide service Could not avail service in previous visit as there was a long queue Concerned functionary was not available Counter was not operational Documents/application submitted by me were incomplete Others Total Treatment (Online) 5 27.8% 7 38.9% 2 11.1% 1 5.6% 1 5.6% 0 .0% 2 11.1% 18 100.0% Comparison (Manual) 15 37.5% 11 27.5% 1 2.5% 6 15.0% 2 5.0% 4 10.0% 1 2.5% 40 100.0% Total 20 34.5% 18 31.0% 3 5.2% 7 12.1% 3 5.2% 4 6.9% 3 5.2% 58 100.0%

Table 23: Waiting time for availing service Had to wait excessively for availing service in any of the trips Treatment (Online) 47 23.3% 155 76.7% 202 100.0% Comparison (Manual) 68 27.4% 180 72.6% 248 100.0% Total 115 25.6% 335 74.4% 450 100.0%

Yes No Total

Table 24: Excessive waiting time for availing service Reasons for excessive wait Treatment (Online) 33 70.2% 7 14.9% 5 10.6% 1 2.1% 1 2.1% 47 100.0% Comparison (Manual) 39 57.4% 18 26.5% 7 10.3% 4 5.9% 0 .0% 68 100.0% Total 72 62.6% 25 21.7% 12 10.4% 5 4.3% 1 .9% 115 100.0%

Long queue/ Too many applicants at ofce Ofcials of CTD are inefcient (slow in processing) Processes are too complex & take lot of time to complete Some windows/counters were not operational Others Total

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Impact Assessment of Commercial Taxes Computerization 2010-Rajasthan

Table 25: Number of times user had to log-in for availing service Number of times log-in to avail online service 1 2 3 4 5 Total Treatment (Online) 82 40.0% 76 37.1% 18 8.8% 15 7.3% 14 6.9% 205 100.0% Total 82 40.0% 76 37.1% 18 8.8% 15 7.3% 14 6.9% 205 100.0%

Table 26: Number of times user had to log-in for availing service Reasons to log-in more than once Service was not available as server was slow Templates had changed, therefore it had to be downloaded rst Others Total Treatment (Online) 106 86.2% 7 5.7% 10 8.1% 123 100.0% Total 106 86.2% 7 5.7% 10 8.1% 123 100.0%

Table 27: Time taken to complete online transaction Time taken to complete online transaction was excessive Yes No Total Treatment (Online) 86 42.0% 119 58.0% 205 100.0% Total 86 42.0% 119 58.0% 205 100.0%

417

Impact Assessment of Commercial Taxes Computerization 2010-Rajasthan

Table 28: Time taken to complete online transaction Reasons for excessive time in online transactions Server is slow Processes are complex and time consuming Errors occur while uploading template Others Total Treatment (Online) 54 62.8% 17 19.8% 14 16.3% 1 1.2% 86 100.0% Total 54 62.8% 17 19.8% 14 16.3% 1 1.2% 86 100.0%

Table 29: Bribe paid Paid a bribe directly to Ofcials Yes No Total Treatment (Online) 17 8.3% 188 91.7% 205 100.0% Comparison (Manual) 20 8.1% 228 91.9% 248 100.0% Total 37 8.2% 416 91.8% 453 100.0%

Table 30: Purpose of bribes Purpose to pay bribe Treatment (Online) 4 23.5% 2 11.8% 13 76.5% 17 Comparison (Manual) 2 10.0% 4 20.0% 14 70.0% 20 Total 6 6 27 37

To avoid audit assessment by CTD To inuence functionaries to manipulate records in our favor To expedite the process Total

418

Impact Assessment of Commercial Taxes Computerization 2010-Rajasthan

SECTION E: Overall Assessment


Table 31: Overall Assessment Change Overall Assessment Time and effort in ling returns N S.E. Cost incurred in ling returns N S.E. Design and layout of forms/template N S.E. Time and effort in tax payment N S.E. Security of monetary transactions N S.E. Overall quality of service N S.E. Overall quality of governance N S.E. Overall experience of availing service from CTD N S.E. Accuracy of transactions N S.E. Condentiality and security of data N S.E. Time and effort in procuring forms N S.E. Time and effort in accessing information N S.E. Predictability of Outcome N S.E Clarity and simplicity of processes and procedures N Manual 3.23 247 0.081 3.60 247 0.074 3.26 66 0.152 3.41 206 0.087 3.69 206 0.079 3.52 250 0.072 3.42 250 0.064 3.33 250 0.063 3.68 250 0.074 3.70 250 0.071 3.09 250 0.071 3.10 250 0.071 3.07 250 0.065 3.28 250 Computerized 3.34 212 0.093 3.69 212 0.081 3.05 184 0.087 3.56 59 0.139 3.83 60 0.131 3.51 253 0.069 3.45 253 0.066 3.33 252 0.064 3.72 253 0.072 3.71 253 0.072 3.29 253 0.076 3.28 253 0.075 3.07 253 0.064 3.30 253 (C-M) .110 Signicance NS

.090

NS

-.203

NS

.147

NS

.139

NS

-.002

NS

.027

NS

-.003

NS

.039

NS

.004

NS

.197

.177

-.001

NS

.024

NS

419

Impact Assessment of Commercial Taxes Computerization 2010-Rajasthan

Change Overall Assessment S.E Accountability of ofcials N S.E. Transparency in CTD N S.E. Knowledge of ofcials N S.E. Ability to inuence policies, rules and procedures through feedback N S.E. Level of corruption N S.E. Courtesy and helpfulness of ofcials N S.E. Problem solution N S.E. Complaint handling mechanism N S.E. Convenience of working hours N S.E. Queuing system at CTD ofce N S.E. Convenience of location of ofce N S.E. Adherence to citizen charter N S.E. Dependence on CTPs N S.E. Durability and legibility of certicates/receipts N S.E. Manual 0.068 2.84 250 0.070 3.18 250 0.066 3.17 250 0.069 3.18 250 0.070 2.20 250 0.060 2.99 250 0.065 2.77 250 0.062 3.30 250 0.075 3.13 250 0.067 2.82 250 0.077 3.54 249 0.078 3.01 249 0.070 3.13 248 0.077 3.31 216 0.087 Computerized (C-M) 0.069 2.81 253 0.071 3.29 253 0.067 3.14 253 0.076 3.28 253 0.068 2.27 253 0.064 3.15 253 0.069 2.75 253 0.069 3.26 252 0.081 3.15 253 0.067 2.68 249 0.077 3.37 252 0.079 3.12 249 0.078 3.04 251 0.074 3.36 208 0.085 -.030 NS Signicance

.105

NS

-.026

NS

.109

NS

.069

NS

.162

-.025

NS

-.038

NS

.026

NS

-.137

NS

-.177

NS

.108

NS

-.089

NS

.050

NS

420

Impact Assessment of Commercial Taxes Computerization 2010-Rajasthan

Composite Score
Table 32: Composite Score Respondents who Considered Factor to Average of Individual be Among Three Most Scores Important a b c d

Improvement e F Weighted Score (Column e X Column b) 0.0100 0.0039 -0.0035 0.0028 0.0053 -0.0001 0.0012 -0.0001 0.0027 0.0003 0.0083 0.0055 0.0000 0.0004 -0.0012 0.0028 -0.0013 0.0016 0.0052 0.0073 -0.0012

Column No.

Factor

Number

Difference Percentage (Col(Column a/ Computerized Manual umn c Total of Col umn a) Column d) 9.1% 4.3% 1.7% 1.9% 3.8% 6.0% 4.4% 2.1% 6.8% 7.5% 4.2% 3.1% 0.5% 1.6% 3.9% 2.7% 4.9% 1.5% 7.6% 4.5% 4.8% 2.75 3.34 3.69 3.05 3.56 3.83 3.51 3.45 3.33 3.72 3.71 3.29 3.28 3.07 3.30 2.81 3.29 3.14 3.28 2.27 3.15 3.23 3.60 3.26 3.41 3.69 3.52 3.42 3.33 3.68 3.70 3.09 3.10 3.07 3.28 2.84 3.18 3.17 3.18 2.20 2.99 2.77 .110 .090 -.203 .147 .139 -.002 .027 -.003 .039 .004 .197 .177 -.001 .024 -.030 .105 -.026 .109 .069 .162 -.025

Time and effort in ling returns Cost incurred in ling returns Design and layout of forms/template Time and effort in tax payment Security of monetary transactions Overall quality of service Overall quality of governance Overall experience of availing service from CTD Accuracy of transactions Condentiality and security of data Time and effort in procuring forms Time and effort in accessing information Predictability of outcome Clarity and simplicity of processes and procedures Accountability of Ofcials Transparency in CTD Knowledge of Ofcials Ability to inuence policies, rules and procedures through feedback Level of corruption Courtesy and helpfulness of Ofcials Problem resolution 73

138 65 26 28 57 90 67 31 102 113 64 47 7 24 59 41 74 22 114 68

421

Impact Assessment of Commercial Taxes Computerization 2010-Rajasthan

Column No. Factor

Respondents who Considered Factor to be Among Three Most Important a b Number

Average of Individual Scores c d

Improvement

e Difference (Column c Column d) -.038 .026 -.137 -.177 .108 -.089 .050

F Weighted Score (Column e X Column b)

Percentage Computerized Manual (Column a/ Total of Column a)

Complaint handling mechanism Convenience of working hours Queuing system at CTD Ofce Convenience of location of ofce Adherence to Citizen Charter Dependence on CTPs Durability and legibility of certicates/receipts Total (Sum of column)

41 28 15 27 26 50 12 1509

2.7% 1.9% 1.0% 1.8% 1.7% 3.3% 0.8% 100.0%

3.26 3.15 2.68 3.37 3.12 3.04 3.36

3.30 3.13 2.82 3.54 3.01 3.13 3.31

-0.0010 0.0005 -0.0014 -0.0032 0.0018 -0.0029 0.0004 0.0442

SECTION F: Suggestions
Table 33: Suggestions for improving online services Suggestions for improving online services (Multiple Responses) Eliminate practice of submission of hard copy of CTD Server speed should be increased Tax consultants should be allowed to make E-payment on behalf of their clients through Consultants Internet Banking A/C Maintenance of website should not be done during ofce hour CTD ofcials should be given adequate training, so that they can handle queries on online services efciently Involve more banks in E-payment Provide templates (w.r.t. returns) that can perform data verication ofine Changes in processes/templates should be immediately communicated to dealers Others Total N 355 255 104 107 120 219 175 249 5 1589 Percent 22.3% 16.0% 6.5% 6.7% 7.6% 13.8% 11.0% 15.7% .3% 100.0% Percent of Cases 70.6% 50.7% 20.7% 21.3% 23.9% 43.5% 34.8% 49.5% 1%

422

Impact Assessment of Commercial Taxes Computerization 2010-Rajasthan

Table 34: Suggestions for increasing usage of online services Suggestions to increase usage of e-Services (Multiple Responses) Awareness campaigns on online services for dealers Establishment of common service centres to facilitate e-Services to all dealers Online processes should be made much more user friendly and simple Others Total N 339 301 394 2 1036 Percent 32.7% 29.1% 38.0% .2% 100.0% Percent of Cases 67.4% 59.8% 78.3% .4%

423

Impact Assessment of Commercial Taxes Computerization 2010-Rajasthan

Annexure I

Rajasthan: Dealers Using Mandatory Online Services

SECTION A: Identication Details


Table 1: Division wise frequency Division: Jaipur II Circle A J Rajasthan Special Special 2 Special 8 D Total Division: Kota Circle D A B Special Special 2 Total Division: Bikaner Circle A B Jhunjhunu Churu C Total Division: Udaipur Circle A B C Special Total N 3 3 1 3 10 N 4 3 3 3 2 15 N 1 5 4 4 4 18 N 11 4 3 6 7 23 54

424

Impact Assessment of Commercial Taxes Computerization 2010-Rajasthan

Table 2: Location wise frequency Location Urban Frequency 97 Percent 100.0

SECTION B: Dealer Prole


Table 3: Constitution of enterprise Constitution of enterprise Proprietor Partnership Private Limited Company Public Limited Company Cooperative society Total Frequency 62 12 19 3 1 97 Table 4: Type of business Type of business Manufacture Wholesale Retail Export Banking Commission Agent Total Table 5: VAT registration Registered for VAT Yes Total Frequency 97 97 Table 6: CST registration Registered for CST Yes No Total Frequency 14 83 97 Percent 14.4 85.6 100.0 Percent 100.0 100.0 Frequency 18 62 11 3 1 2 97 Percent 18.6 63.9 11.3 3.1 1.0 2.0 100.0 Percent 63.9 12.4 19.6 3.1 1.0 100.0

Table 7: Mode of maintenance of books of accounts Mode in which Books of Accounts are maintained within the organization Manual Computerized Total Frequency 3 94 97 Percent 3.1 96.9 100.0

425

Impact Assessment of Commercial Taxes Computerization 2010-Rajasthan

Table 8: Number of staff involved in activities w.r.t Commercial Taxes Number of staff in the organization involved in activities related to Commercial Taxes 1 2 3 5 Total Frequency 67 25 3 2 97 Percent 69.1 25.8 3.1 2.1 100.0

SECTION C: Awareness And Usage Of Online Services


Table 9: Source of awareness on online services First source of awareness about online services Newspaper Television Dealers CTPs CTD Ofcials Total Table 10: Awareness on online services Online services provided by Commercial taxes department Application for Registration Application for issue of CST forms Application for refund Filing Returns Information Dissemination Total Frequency 37 29 6 24 1 97 Percent 38.1 29.9 6.2 24.7 1.0 100.0 Frequency 19 5 5 33 35 97 Percent 19.6 5.2 5.2 34.0 36.1 100.0

Table 11: Reasons for using online services Reasons for using e-services Online process is faster Online process is more secure Fewer errors in online process Fewer visits to commercial taxes department Online process is more transparent It is mandatory Total Responses N Percent 77 30.2% 45 17.6% 28 11.0% 58 22.7% 13 5.1% 34 13.3% 255 100.0% Percent of Cases 79.4% 46.4% 28.9% 59.8% 13.4% 35.1% 262.9%

426

Impact Assessment of Commercial Taxes Computerization 2010-Rajasthan

SECTION D: Time And Effort And Costs Of Availing Service


Table 12: Time and cost of availing service Obtaining VAT Forms Computerized Manual Change(C-M) Signicance

Number of trips

Time and Cost of Availing Services From Commercial Taxes Department 0 1.28 -1.28 ** N 97 97 S.E. 0 .050 Mode 0 1 Comment: None of the online users visited CTD to obtain VAT forms. Clearly, online service has helped dealers in terms of reducing trips to CTD. Waiting time (Minutes) NA 58.0000 N 5 S.E. 16.55295 Mode 60 Travel cost (INR) NA 98.00 N 5 S.E. 34.117 Mode 50 Travel time (Minutes) NA 100.00 N 5 S.E. 38.471 Mode 60 Number of times user had to log-in to avail on1.81 NA line service N 97 S.E. .116 Mode 1 Total time taken to complete transaction Online 25.57 NA (Minutes) N 97 S.E. 2.028 Mode 30 Amount spent as salary/wages on total time 32.411 78.659 -46.2474 ** spent in availing service (INR) N 97 97 S.E. 10.3591 12.4041 Mode 10 50 Comment: The difference is because online users do not have to visit CTD to obtain VAT forms

427

Impact Assessment of Commercial Taxes Computerization 2010-Rajasthan

Obtaining VAT Forms Service Charge paid to department (INR)

Computerized Manual Change(C-M) Signicance 0 0 N 97 97 S.E. 0 0 Mode 0 0 Amount paid as bribe (INR) .0000 22.8247 -22.82474 ** N 97 97 S.E. .00000 5.57137 Mode 0 0 Comment: Online users do not have to approach CTD ofcials for VAT forms they can download it therefore, they did not pay bribes. Total payment made (INR) 0 22.82 -22.825 ** N 97 97 S.E. 0 5.571 Mode 0 0 Comment: As there is no service charge, the only payment made is bribes. Total elapsed time in availing service (Hours) 1.287 16.261 -14.9740 ** N 97 97 S.E. .3361 1.6269 Mode .5 1 Comment: There is signicant reduction in total elapsed time in availing service due to introduction of online service.

Other Tables: Time and Effort and Costs of Availing Service


A. Online Service
Table 13: Number of trips Number of trips make to CTD 0 Total Frequency 97 97 Percent 100.0 100.0

Table 14: Number of times user had to log-in for availing service Number of times log-in to download VAT forms 1 2 3 4 5 7 Total Frequency 47 34 10 3 1 2 97 Percent 48.5 35.1 10.3 3.1 1.0 2.1 100.0

428

Impact Assessment of Commercial Taxes Computerization 2010-Rajasthan

Table 15: Number of times user had to log-in for availing service Reasons to log-in more than once Service was not available as server was slow Portal was undergoing maintenance Not enough knowledge on online system Total Frequency 47 1 2 50 Valid Percent 94.0 2.0 4.0 100.0

Table 16: Time taken to complete online transaction Time taken to complete online transaction was excessive Yes No Total Frequency 29 68 97 Table 17: Time taken to complete online transaction Reasons for excessive time in online transaction Server is slow Table 18: Bribe paid Paid a bribe directly to Ofcials No Frequency 97 Percent 100.0 Frequency 29 Valid Percent 100.0 Percent 29.9 70.1 100.0

B. Manual Service
Table 19: Number of trips Number of trips make to CTD 1 2 3 Total Table 20: Number of trips Reasons to make more that one trip It was required - as per CTD procedure To follow up, as there was delay on the part of CTD to provide service Concerned functionary was not available Total Frequency 12 8 5 25 Valid Percent 48.0 32.0 20.0 100.0 Frequency 72 23 2 97 Percent 74.2 23.7 2.1 100.0

Table 21: Waiting time for availing service Had to wait excessively for availing service Yes No Total Frequency 28 69 97 Percent 28.9 71.1 100.0

429

Impact Assessment of Commercial Taxes Computerization 2010-Rajasthan

Table 22: Excessive waiting time for availing service Reason for excessive wait (Multiple Responses) N Long queue/ Too many applicants at ofce/ Badly managed queue Ofcials of CTD are inefcient (slow in processing) Some windows/counters were not operational Total 17 11 2 30 Responses Percent 56.7% 36.7% 6.7% 100.0% 60.8% 39.3% 7.1% Percent of Cases

Table 23: Bribe paid Paid a bribe directly to Ofcials Yes No Total Table 24: Purpose of bribes Purpose of bribe To expedite the process Total Frequency 15 15 Valid Percent 100.0 100.0 Frequency 15 82 97 Percent 15.5 84.5 100.0

SECTION E: Overall Assessment


Table 25: Overall Assessment Overall Assessment Cost of availing service N S.E. Time and effort in availing service N S.E. Overall experience of availing service from CTD N S.E. Overall quality of governance N S.E. Overall quality of service N S.E. Durability and legibility of statutory forms N S.E. Clarity and simplicity of processes and procedures Computerized 3.83 96 .104 3.78 96 .124 3.73 96 .105 3.71 96 .106 3.78 96 .105 3.72 96 .115 3.52 Manual 2.90 96 .099 2.86 96 .108 3.02 96 .107 2.97 96 .100 2.89 96 .101 3.02 96 .109 2.86 Change (C-M) .938 Signicance **

.917

**

.708

**

.740

**

.896

**

.698

**

.656

**

430

Impact Assessment of Commercial Taxes Computerization 2010-Rajasthan

Overall Assessment Computerized N 96 S.E. .112 Accountability of Ofcials 3.46 N 96 S.E. .117 Transparency in CTD 3.72 N 96 S.E. .098 Knowledge of Ofcials 3.36 N 96 S.E. .122 Predictability of outcome 3.39 N 96 S.E. .114 Complaint handling mechanism & problem resolu3.27 tion N 96 S.E. .127 Ability to inuence policies, rules and procedures 3.47 N 96 S.E .099 Convenience of location of centre/ofce - accessibil3.87 ity N 95 S.E .115 Courtesy and helpfulness of Ofcials 3.34 N 95 S.E. .124 Convenience of working hours 3.63 N 96 S.E. .107 Queuing system at CTD Ofce 3.37 N 92 S.E. .137 Level of corruption 3.03 N 92 S.E. .137 Adherence to Citizen Charter 3.23 N 95 S.E. .123 Dependence on Ofcials 3.42 N 96 S.E. .118

Manual 96 .111 2.56 96 .111 2.95 96 .100 2.90 96 .112 2.90 96 .110 2.77 96 .118 3.05 96 .110 3.53 95 .127 2.76 95 .116 2.72 96 .103 2.54 92 .118 2.54 92 .118 2.62 95 .122 2.79 96 .126

Change (C-M)

Signicance

.896

**

.771

**

.469

**

.490

**

.500

**

.417

**

.347

**

.579

**

.906

**

.826

**

.792

**

.611

**

.625

**

431

Impact Assessment of Commercial Taxes Computerization 2010-Rajasthan

Composite Score
Table 26: Composite Score Respondents who Considered Factor to be Among Three Most Important Column No. a b Average of Individual Scores c d

Improvement e F Weighted Score (Column e X Column b) 0.087234 0.066024 0.024072 0.03848 0.046592 0.055142 0.026896 0.030464 0.029298 0.041741 0.01862 0.024 0.010008 0.00347 0.041688 0.04077 0.031388 0.073656 0.00611 0.02375 0.719403

Factor

Number

Percentage Difference (Column a/ Computer(Column c Manual Total of Colized umn a) Column d) 9.3% 7.2% 3.4% 5.2% 5.2% 7.9% 4.1% 3.4% 3.8% 8.9% 3.8% 4.8% 2.4% 1.0% 7.2% 4.5% 3.8% 9.3% 1.0% 3.8% 100.0% 3.83 3.78 3.73 3.71 3.78 3.72 3.52 3.46 3.72 3.36 3.39 3.27 3.47 3.87 3.34 3.63 3.37 3.03 3.23 3.42 2.9 2.86 3.02 2.97 2.89 3.02 2.86 2.56 2.95 2.9 2.9 2.77 3.05 3.53 2.76 2.72 2.54 2.54 2.62 2.79 0.938 0.917 0.708 0.74 0.896 0.698 0.656 0.896 0.771 0.469 0.49 0.5 0.417 0.347 0.579 0.906 0.826 0.792 0.611 0.625

Cost of availing service Time and effort in availing service Overall experience of availing service from CTD Overall quality of governance Overall quality of service Durability and legibility of statutory forms Clarity and simplicity of processes and procedures Accountability of Ofcials Transparency in CTD Knowledge of Ofcials Predictability of outcome Complaint handling mechanism & problem resolution Ability to inuence policies, rules and procedures Convenience of location of center/ofce - accessibility Courtesy and helpfulness of Ofcials Convenience of working hours Queuing system at CTD Ofce Level of corruption Adherence to Citizen Charter Dependence on Ofcials Total (Sum of column)

27 21 10 15 15 23 12 10 11 26 11 14 7 3 21 13 11 27 3 11 291

432

Impact Assessment of Commercial Taxes Computerization 2010-Rajasthan

SECTION F: Suggestions
Table 27: Suggestions for improving online services Suggestions for improving online service Eliminate practice of submission of hard copy of CTD Server speed should be increased Tax consultants should be allowed to make E-payment on behalf of their clients through Consultants Internet Banking A/C Maintenance of website should not be done during ofce hour CTD ofcials should be given adequate training, so that they can handle queries on online services efciently Involve more banks in e-payment Provide templates (w.r.t. returns) that can perform data verication ofine Changes in processes/templates should be immediately communicated In case there are any mistakes in data/documents submitted by dealers, CTD should inform them immediately Total Responses N Percent 76 17.4% 68 15.6% 24 30 37 51 39 61 50 436 5.5% 6.9% 8.5% 11.7% 8.9% 14.0% 11.5% 100.0% Percent of Cases 78.4% 70.1% 24.7% 30.9% 38.1% 52.6% 40.2% 62.9% 51.6%

Table 28: Suggestions for increasing usage of online services Suggestions to increase use of e-service Awareness campaigns on online services for dealers Establishment of common service centres to facilitate e-services for al Online processes should be made much more user friendly and Total Responses N Percent 66 33.7% 53 27.0% 77 39.3% 196 100.0% Percent of Cases 68.0% 54.6% 79.4%

433

Impact Assessment of Commercial Taxes Computerization 2010-Rajasthan

Annexure J

Rajasthan: CTPs Using Optional Online Services


SECTION A: Identication Details
Table 1: Group wise frequency Group Treatment (Online) Comparison (Manual) Total Frequency 76 77 153 Table 2: Division and circle wise frequency Division Circle A J Rajasthan Special Jaipur II Special 2 Special 8 D Total A B Kota Special Special 2 Total A B Bikaner Jhunjhunu Churu Total A B Udaipur C Special Total Treatment (Online) 12 10 5 5 5 5 42 4 4 4 3 15 2 4 1 3 10 3 2 2 2 9 Comparison (Manual) 12 10 5 5 5 5 42 4 4 5 3 16 2 4 2 2 10 3 2 2 2 9 Total 24 20 10 10 10 10 84 8 8 9 6 31 4 8 3 5 20 6 4 4 4 18 Percent 49.7 50.3 100.0

434

Impact Assessment of Commercial Taxes Computerization 2010-Rajasthan

Table 3: Location and group wise frequency Location Urban Total Treatment (Online) 76 100.0% 76 100.0% Comparison (Manual) 77 100.0% 77 100.0% Total 153 100.0% 153 100.0%

SECTION B: CTP Prole


Table 4: Education of CTP Educational qualication of Tax Consultant CA LLB B.Com Total Treatment (Online) 43 56.6% 30 39.5% 3 3.9% 76 100.0% Table 5: Years of experience of CTP Years of Experience as Tax Consultant 1-5 6-10 11-15 16-20 21-25 >25 Total Treatment (Online) 11 14.40% 21 27.60% 16 21.00% 10 13.1% 5 6.5% 13 17.00% 76 100.0% Comparison (Manual) 23 29.90% 18 23.40% 11 14.30% 6 7.8% 12 15.6% 7 9.10% 77 100.0% Total 34 22.20% 39 25.50% 27 17.80% 16 10.5% 17 11.2% 20 13.30% 153 100.0% Comparison (Manual) 42 54.5% 30 39.0% 5 6.5% 77 100.0% Total 85 55.6% 60 39.2% 8 5.2% 153 100.0%

435

Impact Assessment of Commercial Taxes Computerization 2010-Rajasthan

Table 6: Number of staff involved in activities w.r.t Commercial Taxes Number of staff in the organization involved in activities related to Commercial Taxes 1 2 3 4 5 >5 Total Treatment (Online) 9 11.8% 35 46.1% 16 21.1% 7 9.2% 7 9.2% 2 2.6% 76 100.0% Comparison (Manual) 24 31.2% 36 46.8% 9 11.7% 5 6.5% 3 3.9% 0 .0% 77 100.0% Total 33 21.6% 71 46.4% 25 16.3% 12 7.8% 10 6.5% 2 1.4% 153 100.0%

Table 7: Computer literacy of CTP Tax Consultant is computer literate Treatment (Online) 76 100.0% 0 .0% 76 100.0% Comparison (Manual) 61 79.2% 16 20.8% 77 100.0% Total 137 89.5% 16 10.5% 153 100.0%

Yes No Total

Table 8: Experience in using online services Tax Consultant used any online e-Gov. service Treatment (Online) 76 100.0% 0 .0% 76 100.0% Comparison (Manual) 19 31.1% 42 68.9% 61 100.0% Total 95 69.3% 42 30.7% 137 100.0%

Yes No Total

436

Impact Assessment of Commercial Taxes Computerization 2010-Rajasthan

SECTION C: Awareness and Usage of Online Services


Table 9: Awareness on online services Aware of online services of CTD Yes No Total Treatment (Online) 76 100.0% 0 .0% 76 100.0% Comparison (Manual) 69 89.6% 8 10.4% 77 100.0% Total 145 94.8% 8 5.2% 153 100.0%

Table 10: First source of awareness First source of awareness about online services Newspaper Television Other CTPs CTD Ofcial Others Total Treatment (Online) 22 28.9% 5 6.6% 4 5.3% 43 56.6% 2 2.6% 76 100.0% Comparison (Manual) 19 27.5% 3 4.3% 9 13.0% 34 49.3% 4 5.8% 69 100.0% Total 41 28.3% 8 5.5% 13 9.0% 77 53.1% 6 4.1% 145 100.0%

Table 11: Awareness on online services Online services of CTD Application for Registration Application for issue of CST forms Application for refund Filing Returns Payment of Taxes Information Dissemination Total Treatment (Online) 51 67.1% 49 64.5% 44 57.9% 74 97.4% 57 75.0% 46 60.5% 76 Comparison (Manual) 45 65.2% 43 62.3% 33 47.8% 67 97.1% 46 66.7% 47 68.1% 69 Total 96 92 77 141 103 93 145

437

Impact Assessment of Commercial Taxes Computerization 2010-Rajasthan

Table 12: Usage of online services Used any of the online services provided by CTD Yes No Total Treatment (Online) 76 100.0% 0 .0% 76 100.0% Table 13: Reasons for using online services Reason for using online services Online process is faster Online process is more secure Fewer errors in online process Fewer visits to commercial taxes department Online process is more transparent It is mandatory Total Reasons for not using online services Do not have skills to use online services Do not have access to hardware/software Do not have access to internet Unreliable power situation Online process is prone to errors Online process is not secure Online process is slow Have to submit hard copy to CTD Others Total Treatment (Online) 56 73.7% 29 38.2% 21 27.6% 46 60.5% 22 28.9% 22 28.9% 76 Comparison (Manual) 29 42.0% 16 23.2% 14 20.3% 5 7.2% 33 47.8% 4 5.8% 27 39.1% 37 53.6% 1 1.4% 69 Total 56 29 21 46 22 22 76 Total 29 16 14 5 33 4 27 37 1 69 Comparison (Manual) 0 .0% 69 100.0% 69 100.0% Total 76 52.4% 69 47.6% 145 100.0%

Table 14: Reasons for not using online services

438

Impact Assessment of Commercial Taxes Computerization 2010-Rajasthan

SECTION D: Time and Effort and Costs of Availing Services


Table 15: Services Availed in Last 90 Days and Mode of service Services availed in last 90 days Filing Returns Payment Seeking information Total Online 75 1 0 76 Manual 76 0 1 77 Total 151 1 1 153

Table 16: Services Availed in Last 90 Days and Mode of service Services availed in last 90 days Filing Returns Payment Registration Total Online 0 10 3 13 Manual 1 21 8 30 Total 1 31 11 43

Note: Since there arent sufcient numbers of responses for the following services: Registration, Payment and Seeking Information they have not been analyzed. Table 17: Time and cost of Filing of Returns Filing of Returns Computerized Manual Change(C-M) Time and Cost of Preparation of Documents for Filing of Returns Man-hours were spent in compiling data 3.3688 3.6162 -.24738 N 75 76 S.E. Mode Man-hours were spent for data entry in online template N S.E. Mode Total man-hours for preparation of documents N S.E. Mode Salary/wages for preparation of documents (INR) N S.E. Mode .36604 2.00 1.77 75 .32 1.00 5.0605 75 .58379 3.00 143.28 75 13.558 100 3.9846 76 .57098 2.00 92.86 76 11.691 50 50.425 ** 1.07593 NS .45675 2.00 NA Signicance NS

Comment: Salary/wages for preparation of documents is directly proportional to man-hours spent for it. Man-hours spent for preparation of documents is higher for online users (although statistically it is not signicant) and therefore the salary/wages spent is also higher for them

439

Impact Assessment of Commercial Taxes Computerization 2010-Rajasthan

Filing of Returns Cost of stationery for preparation of documents (INR) N S.E. Mode

Computerized 47.43 75 4.966 50

Manual 67.80 76 6.727 100

Change(C-M) -20.376

Signicance **

Comment: Manual users have spent signicantly more on stationery because they have to enter all details on paper. Online users, however, spent less because most details are entered on online template. Cost of access to Internet (INR) N S.E. Mode Filing of Returns Cost of Statutory Forms and other Forms including courier charges (INR) N S.E. Mode Total cost of preparation of documents (INR) N S.E. Mode 32 75 3 50 Computerized 28.16 75 5.653 0 251.99 75 20.436 205 Manual 34.70 76 4.123 0 191.33 76 16.248 70 60.658 ** Change(C-M) -6.537 Signicance NS NA

Comment: Total cost of preparation of documents for online users is signicantly higher than that of manual users. This is because online users have to do data entry on online template resulting in higher salary/wages being paid for preparation of documents. Time and Cost of Availing Services From Commercial Taxes Department Number of trips N S.E. Mode 1.09 75 .063 1 1.17 76 .051 1 -.078 NS

Comment: There is no signicant difference between manual and online users as far as the number of trips to CTD is concerned. This is because online users too have to submit hard copy of returns to CTD. Waiting time (Minutes) 44.8611 56.6447 N S.E. Mode 72 5.26022 30.00 76 3.80026 60.00 -11.7836 *

Comment: Waiting time for online users is signicantly lesser than that of manual users. This is because returns submitted by online users are not scrutinized as they have already submitted it online, while that of manual users are scrutinized by ofcers of CTD before receipt of submission is issued. Travel cost (INR) 50.28 61.71 -11.433 NS

440

Impact Assessment of Commercial Taxes Computerization 2010-Rajasthan

Filing of Returns N S.E. Mode Travel time (Minutes) N S.E. Mode Number of times user had to log-in to avail online service N S.E. Mode Total time taken to complete transaction Online (Minutes) N S.E. Mode

Computerized 72 6.174 50 53.19 72 4.008 30 3 75 0 2 43 75 4 30

Manual 76 7.032 50 88.29 76 13.859 60 NA

Change(C-M)

Signicance

-35.095

**

NA

Comment: According to many online users the server was slow due to which the time taken to complete online transaction was excessive. Yet another problem pointed out by users is that while uploading the online template, if there is an error (usually syntax error), the online application will not accept the template. Consequently the user has to rectify the error and upload the template yet again. This leads to wastage of time. Some CTPs said that the online process is complex and therefore time consuming. Amount spent as salary/wages on total time spent in availing service (INR) N S.E. Mode Service Charge paid to department (INR) N S.E. Mode Amount paid as bribe (INR) N S.E. Mode Comment: Online users paid signicantly less amount of bribe than manual users Total payment made (INR) N S.E. Mode 15.04 75 4.504 0 30.25 76 7.014 0 -15.210 *

71.87 75 8.800 31 0 75 0 0 15.0400 75 4.50383 .00

64.78 76 7.460 25 0 76 0 0 30.2500 76 7.01425 .00

7.090

NS

-15.21000

441

Impact Assessment of Commercial Taxes Computerization 2010-Rajasthan

Filing of Returns Computerized Manual Change(C-M) Signicance Comment: The difference seen can be attributed to amount of bribe paid, which is signicantly less in the case of online users. Time in availing service through Manual process (Hours) N S.E. Mode ers are not scrutinized at the counter of CTD. Time in availing service through Online process (Hours) N S.E. Mode Total elapsed time in availing service (Hours) N S.E. Mode ing service.

1.3472 75 .47342 .50

1.8818 76 .43084 1.00

-0.53464

NS

Comment: Although it is not signicant statistically, online users spent less time this is because returns of online us-

1.0447 75 .23736 .50 2.9765 75 .89711 1.50

NA

1.5266 76 .18781 1.00

1.44995

NS

Comment: There is no signicant difference between online and manual modes in terms of total elapsed time in avail-

OTHER TABLES: Time and Cost of Filing Returns


Table 18: Number of trips Number of trips make for the service 0 1 2 3 4 Total Treatment (Online) 3 4.0% 66 88.0% 3 4.0% 2 2.7% 1 1.3% 75 100.0% Comparison (Manual) 0 .0% 65 85.5% 9 11.8% 2 2.6% 0 .0% 76 100.0% Total 3 2.0% 131 86.8% 12 7.9% 4 2.6% 1 .7% 151 100.0%

442

Impact Assessment of Commercial Taxes Computerization 2010-Rajasthan

Table 19: Reasons for making more than one trip Reasons to make more that one trip It was required -as per CTD procedure To follow up, as there was delay n the part of CTD to provide service Could not avail service in previous visit as there was a long queue Concerned functionary was not available Counter was not operational Documents/application submitted by me were incomplete Total Treatment (Online) 0 .0% 2 33.3% 0 .0% 1 16.7% 3 50.0% 0 .0% 6 100.0% Table 20: Waiting time for availing service Had to wait excessively for availing service in any of the trips? Yes No Total Treatment (Online) 18 25.0% 54 75.0% 72 100.0% Comparison (Manual) 24 31.6% 52 68.4% 76 100.0% Total 42 28.4% 106 71.6% 148 100.0% Comparison (Manual) 1 9.1% 1 9.1% 2 18.2% 6 54.5% 0 .0% 1 9.1% 11 100.0% Total 1 5.9% 3 17.6% 2 11.8% 7 41.2% 3 17.6% 1 5.9% 17 100.0%

Table 21: Excessive waiting time for availing service Reasons for excessive wait Long queue/ Too many applicants at ofce Ofcials of CTD are inefcient (slow in processing) Processes are too complex & take lot of time to complete Some windows/counters were not operational Others Total Treatment (Online) 9 50% 5 27.8% 3 16.7% 1 5.6% 0 .0% 18 100.0% Comparison (Manual) 14 58.3% 6 25.0% 2 8.3% 1 4.2% 1 4.2% 24 100.0% Total 23 54.7% 11 26.2% 5 11.9% 2 4.8% 1 2.4% 42 100.0%

443

Impact Assessment of Commercial Taxes Computerization 2010-Rajasthan

Table 22: Number of times user had to log-in for availing service Number of times log-in to avail online service 3 4 5 >5 Total Treatment (Online) Frequency Valid Percent 4 5.3 5 6.7 5 6.7 7 9.3 75 100.0

Table 23: Number of times user had to log-in for availing service Reasons to log-in more than once Service was not available as server was slow Templates had changed, therefore it had to be downloaded rst Others Total Treatment (Online) Frequency Valid Percent 44 81.5 5 9.3 5 9.3 54 100.0

Table 24: Time taken to complete online transaction Time taken to complete online transaction was excessive Yes No Total Treatment (Online) Frequency Valid Percent 42 56.0 33 44.0 75 100.0

Table 25: Time taken to complete online transaction Reasons for excessive time Server is slow Process is complex and time consuming Errors occur while uploading templates Total Treatment (Online) Frequency Valid Percent 20 47.6 16 38.1 6 14.3 42 100.0

Table 26: Bribe paid Paid a bribe directly to ofcials Yes No Total Treatment (Online) 17 22.7% 58 77.3% 75 100.0% Comparison (Manual) 17 22.4% 59 77.6% 76 100.0% Total 34 22.5% 117 77.5% 151 100.0%

444

Impact Assessment of Commercial Taxes Computerization 2010-Rajasthan

Table 27: Purpose of bribes Purpose of bribe To avoid audit assessment by CTD Treatment (Online) 3 17.6% To inuence functionaries to manipulate records 3 in your favor 17.6% To expedite the process 10 58.8% Others 1 5.9% Total 17 100.0% Comparison (Manual) 0 .0% 4 23.5% 13 76.5% 0 .0% 17 100.0% Total 3 8.8% 7 20.6% 23 67.6% 1 2.9% 34 100.0%

SECTION E: Overall Assessment


Table 28: Overall Assessment Overall Assessment Time and effort in ling returns N S.E. Cost incurred in ling returns N S.E. Design and layout of forms/template N S.E. Time and effort in tax payment N S.E. Security of monetary transactions N S.E. Overall quality of service N S.E. Overall quality of governance N S.E. Overall experience of availing service from CTD N S.E. Accuracy of transactions N S.E. Condentiality and security of data N S.E. Time and effort in procuring forms N Computerized 3.13 76 .159 3.41 76 0.148 2.78 67 0.175 3.09 34 0.176 3.21 34 0.192 3.32 76 0.131 2.99 76 0.128 3.12 76 0.117 3.62 76 0.149 3.66 76 0.137 3.03 76 Manual 3.13 76 .150 3.43 76 0.132 2.85 41 0.217 3.28 54 0.153 3.37 57 0.136 3.26 77 0.125 2.96 77 0.126 3.25 77 0.137 3.08 77 0.143 3.3 77 0.135 3.13 77 Change (C-M) .000 -.026 -.078 -.190 -.163 .056 .026 -.128 Signicance NS NS NS NS NS NS NS NS

.540 .359 -.104

** * NS

445

Impact Assessment of Commercial Taxes Computerization 2010-Rajasthan

Overall Assessment S.E. Time and effort in accessing information N S.E. Predictability of Outcome N S.E Clarity and simplicity of processes and procedures N S.E Accountability of ofcials N S.E. Transparency in CTD N S.E. Knowledge of ofcials N S.E. Ability to inuence policies, rules and procedures through feedback N S.E. Level of corruption N S.E. Courtesy and helpfulness of ofcials N S.E. Problem solution N S.E. Complaint handling mechanism N S.E. Convenience of working hours N S.E. Queuing system at CTD ofce N S.E. Convenience of location of ofce N S.E. Adherence to citizen charter N S.E. Durability & legibility of certicates/receipts N S.E.

Computerized 0.147 3.24 75 0.162 2.93 75 0.132 3.07 76 0.132 2.55 76 0.155 2.93 76 0.123 2.41 76 0.127 2.88 76 0.126 2.12 76 0.127 3 76 0.138 2.74 76 0.133 2.67 67 0.161 3.14 76 0.142 3.17 72 0.136 3.83 75 0.149 2.92 73 0.153 3.5 74 0.139

Manual 0.134 3.06 77 0.136 3.05 77 0.138 3.21 77 0.131 2.74 77 0.147 2.97 77 0.131 2.81 77 0.147 3.04 77 0.15 2.51 77 0.146 2.78 77 0.135 2.81 77 0.14 2.75 75 0.159 3.08 77 0.143 3.01 77 0.127 3.31 77 0.147 2.83 76 0.139 3.27 77 0.13

Change (C-M) .175 -.119

Signicance NS NS

-.142

NS

-.188 -.040 -.397

NS NS **

-.157

NS

-.388 .221 -.068 -.075 .067 .154 .515 .089 .227

** NS NS NS NS NS ** NS NS

446

Impact Assessment of Commercial Taxes Computerization 2010-Rajasthan

Composite Score
Table 29: Composite Score Respondents who Considered Factor to be Among Three Most Important Column No. Factor a Number b Percentage (Column a/ Total of Column a) Average of Individual Scores Improvement

c d e Computerized Manual Difference (Column c Column d) 3.13 3.41 2.78 3.09 3.21 3.32 2.99 3.12 3.13 3.43 2.85 3.28 3.37 3.26 2.96 3.25 0 -0.026 -0.078 -0.19 -0.163 0.056 0.026 -0.128 0.54 3.66 3.03 3.3 3.13 0.359 -0.104

F Weighted Score (Column e X Column b) 0 -0.00091 -0.00156 -0.00171 -0.00994 0.002296 0.000858 -0.00141 0.02808 0.014719 -0.00728

Time and effort in ling returns Cost incurred in ling returns Design and layout of forms/ template Time and effort in tax payment Security of monetary transactions Overall quality of service Overall quality of governance Overall experience of availing service from CTD Accuracy of transactions Condentiality and security of data Time and effort in procuring forms Time and effort in accessing information Predictability of outcome Clarity and simplicity of processes and procedures Accountability of Ofcials Transparency in CTD Knowledge of Ofcials Ability to inuence policies, rules and procedures through feedback Level of corruption Courtesy and helpfulness of Ofcials

55 16 9 4 28 19 15 5 24 19 32

12.0% 3.5% 2.0% .9% 6.1% 4.1% 3.3% 1.1% 5.2% 4.1% 7.0%

25 2 10 31 10 17 11 41 10

5.4% .4% 2.2% 6.8% 2.2% 3.7% 2.4% 8.9% 2.2%

3.24 2.93 3.07 2.55 2.93 2.41 2.88 2.12 3

3.06 3.05 3.21 2.74 2.97 2.81 3.04 2.51 2.78

0.175 -0.119 -0.142 -0.188 -0.04 -0.397 -0.157 -0.388 0.221

0.00945 -0.00048 -0.00312 -0.01278 -0.00088 -0.01469 -0.00377 -0.03453 0.004862

447

Impact Assessment of Commercial Taxes Computerization 2010-Rajasthan

Respondents who Considered Factor to be Among Three Most Important Column No. Factor a Number b Percentage (Column a/ Total of Column a) 2.2% 1.7% 2.6% 1.3% 1.7%

Average of Individual Scores

Improvement

F Weighted Score (Column e X Column b) 0.001474 0.002618 0.01339 0.001157 0.003859

Computerized Manual Difference (Column c Column d) 3.14 3.17 3.83 2.92 3.5 3.08 3.01 3.31 2.83 3.27 0.067 0.154 0.515 0.089 0.227

Convenience of working hours Queuing system at CTD Ofce Convenience of location of ofce Adherence to Citizen Charter Durability and legibility of certicates/receipts Total (Sum of column)

10 8 12 6 8

459

-0.01528

SECTION F: Suggestions
Table 30: Suggestions for improving online services Suggestions for improving online service Eliminate practice of submission of hard copy of CTD Server speed should be increased Tax consultants should be allowed to make E-payment on behalf of clients through Consultants Internet Banking A/C Maintenance of website should not be done during ofce hour CTD ofcials should be given adequate training, so that they can handle queries on online services efciently Involve more banks in E-payment Provide templates (w.r.t. returns) that can perform data verication ofine Changes in processes/templates should be immediately communicated to users Mistakes in database maintained by CTD w.r.t. addresses of dealers must be rectied Others Total Responses N Percent 111 90 35 30 55 74 70 73 3 3 544 20.4% 16.5% 6.4% 5.5% 10.1% 13.6% 12.9% 13.4% .6% .6% 100.0% Percent of Cases 72.5% 58.8% 22.9% 19.6% 35.9% 48.4% 45.8% 47.7% 2.0% 2.1%

448

Impact Assessment of Commercial Taxes Computerization 2010-Rajasthan

Table 31: Suggestions for increasing usage of online services Suggestions to increase use of e-Service Awareness campaigns on online services for users Establishment of common service centres to facilitate e-services to all Online processes should be made much more user friendly & simple Others Total N 99 70 118 4 291 Percent 34.0% 24.1% 40.5% 1.3% 100.0% Percent of Cases 64.7% 45.8% 77.1% 2.7%

449

Impact Assessment of Commercial Taxes Computerization 2010-Rajasthan

Annexure K

Rajasthan: Dealers Using Mandatory Online Services


SECTION A: Identication Details
Table 1: Division wise frequency Division: Jaipur II Circle A J Rajasthan Special Special 2 Special 8 D Total Division: Kota Circle A B Special Special 2 Total Division: Bikaner Circle A B Jhunjhunu Churu Total Division: Udaipur Circle A B C Special Total N 2 2 1 1 6 N 2 2 1 2 7 N 3 3 1 3 10 N 7 7 4 4 3 4 29

Table 2: Location wise frequency Location Urban Frequency 52 Percent 100.0

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Impact Assessment of Commercial Taxes Computerization 2010-Rajasthan

SECTION B: CTP Prole


Table 3: Qualication of CTP Educational qualication of Tax Consultant CA LLB B.Com Total Frequency 32 14 6 52 Percent 61.5 26.9 11.5 100.0

Table 4: Experience of CTP Years of Experience as Tax Consultant 1-5 6-10 11-15 16-20 21-25 >25 Total Frequency 11 13 16 2 3 7 52 Percent 21 24.9 30.8 3.8 5.7 13.4 100.0

Table 5: Number of staff involved in activities w.r.t Commercial Taxes Number of staff in the organization involved in activities related to Commercial Taxes 1 2 3 4 5 >5 Total Frequency 6 24 11 2 4 5 52 Percent 11.5 46.2 21.2 3.8 7.7 9.6 100.0

Table 6: Computer literacy of CTP Tax Consultant is computer literate Yes Total Frequency 52 52 Percent 100.0 100.0

Table 7: Experience of CTP in using online services Tax Consultant used any online e-Gov. service Yes Frequency 52 Percent 100.0

451

Impact Assessment of Commercial Taxes Computerization 2010-Rajasthan

SECTION C: Awareness And Usage Of Online Services


Table 8: Source of awareness on online services First source of awareness about online services Newspaper Other CTPs CTD ofcial Others Total Frequency 14 2 34 2 52 Percent 26.9 3.8 65.4 3.8 100.0

Table 9: Awareness on online services e-Services of CTD Application for Registration Application for issue of CST forms Application for refund Filing Returns Payment of Taxes Information Dissemination Total N 37 43 34 52 40 35 241 Percent 15.4% 17.8% 14.1% 21.6% 16.6% 14.5% 100.0% Percent of Cases 71.2% 82.7% 65.4% 100.0% 76.9% 67.3%

Table 10: Reasons for using online services Reasons for using e-Services Online process is faster Online process is more secure Fewer errors in online process Fewer visits to commercial taxes department Online process is more transparent It is mandatory Total N 37 14 12 21 5 29 118 Percent 31.4% 11.9% 10.2% 17.8% 4.2% 24.6% 100.0% Percent of Cases 71.2% 26.9% 23.1% 40.4% 9.6% 55.8%

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Impact Assessment of Commercial Taxes Computerization 2010-Rajasthan

SECTION D: Time And Effort And Costs Of Availing Service


Table 11: Time and cost of availing service Obtaining VAT Forms Computerized Manual Change(C-M) Signicance

Number of trips N S.E. Mode

Time and Cost of Availing Service From Commercial Taxes Department 0 1.52 -1.52 52 52 0 0 .089 1

**

Comment: None of the online users visited CTD to obtain VAT forms. Clearly, online service has helped dealers in terms of reducing trips to CTD. Waiting time (Minutes) N S.E. Mode Total travel cost (INR) N S.E. Mode Total travel time (Minutes) N S.E. Mode Number of times user had to log-in to avail online service N S.E. Mode Total time taken to complete transaction Online (Minutes) N S.E. Mode Amount spent as salary/wages on total time spent in availing service (INR) N S.E. Mode 2.35 52 .256 2 31.25 52 4.3 30 15.894 52 2.1467 21.0 74.673 52 12.0109 50.0 -58.7788 ** NA NA NA NA 69.90 52 7.25 60.00 69.52 52 7.961 100 86.94 52 14.293 60 NA

Comment: The difference is because online users do not have to visit CTD to obtain VAT forms

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Impact Assessment of Commercial Taxes Computerization 2010-Rajasthan

Obtaining VAT Forms Service Charge paid to department (INR) N S.E. Mode Amount paid as bribe (INR) N S.E. Mode

Computerized .00 52 .000 0 0 52 0 .00

Manual .00 52 .000 0 27.3077 52 6.93710 .00

Change(C-M) Signicance

-27.3077

**

Comment: Online users do not have to approach CTD ofcials for VAT forms they can download it therefore, they did not pay bribes. Total payment made (INR) 0 27.31 -27.308 ** N S.E. Mode 52 0 0 52 6.937 0 -11.84731 **

Comment: As there is no service charge, the only payment made is bribes. Total elapsed time in availing service (Hours) .6721 12.5194 N 52 52 S.E. Mode .10719 .50 1.96596 24.00

Comment: There is signicant reduction in total elapsed time in availing service due to introduction of online service.

Other Tables: Time and Effort and Costs of Availing Service


A. Online Service
Table 12: Number of trips Number of trips need to make to CTD 0 Frequency 52 Table 13: Number of times user had to log-in for availing service Number of times log-in to download statutory 1 2 3 4 5 >5 Total Frequency 18 19 7 3 3 2 52 Percent 34.6 36.5 13.5 5.8 5.8 3.8 100.0 Percent 100.0

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Impact Assessment of Commercial Taxes Computerization 2010-Rajasthan

Table 14: Number of times user had to log-in for availing service Reasons to log-in more than once Service was not available as server was slow Error in computer (at user end) Error in server (at service provider end) Total Frequency 30 2 2 34 Valid Percent 88.2 5.9 5.9 100.0

Table 15: Time taken to complete online transaction Time taken to complete online transaction was excessive Yes No Total Frequency 29 23 52 Percent 55.8 44.2 100.0

Table 16: Time taken to complete online transaction Reasons for excessive time in online transaction Server is slow Process is complex Total Frequency 26 3 29 Valid Percent 89.7 10.3 100.0

Table 17: Bribe paid Paids a bribe directly to Ofcials No Total Frequency 52 52 Percent 100.0 100.0

B. Manual Service
Table 18: Number of trips Number of trips need to make to CTD 1 2 3 Total Frequency 29 19 4 52 Percent 55.8 36.5 7.7 100.0

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Impact Assessment of Commercial Taxes Computerization 2010-Rajasthan

Table 19: Number of trips Reasons to make more than one trip N It was required - as per CTD procedure To follow up, as there was delay on the part of CTD to provide service Could not avail service in previous visit as there was a long queue Concerned functionary was not available Counter was not operational Documents/application submitted by me were incomplete Total 7 7 2 7 4 2 29 Responses Percent 24.1% 24.1% 6.9% 24.1% 13.8% 6.9% 100.0% 30.4% 30.4% 8.7% 30.4% 17.4% 8.7% Percent of Cases

Table 20: Waiting time for availing service Had to wait excessively for availing service in any of the trips Yes No Total Frequency 24 28 52 Percent 46.2 53.8 100.0

Table 21: Excessive waiting time for availing service Reasons for excessive wait Long queue/ Too many applicants at ofce Ofcials of CTD are inefcient (slow in processing) Some windows/counters were not operational Total Frequency 11 11 2 24 Valid Percent 45.8 45.8 8.3 100.0

Table 22: Bribe paid Paid a bribe directly to Ofcials Yes No Total Frequency 13 39 52 Percent 25.0 75.0 100.0

Table 23: Purpose of bribes Purpose to pay the bribe To expedite the process Frequency 13 Valid Percent 100.0

456

Impact Assessment of Commercial Taxes Computerization 2010-Rajasthan

SECTION E: Overall Assessment


Table 24: Overall Assessment Overall Assessment Cost of availing service N S.E. Time and effort in availing service N S.E. Overall experience of availing service from CTD N S.E. Overall quality of governance N S.E. Overall quality of service N S.E. Durability and legibility of statutory forms N S.E. Clarity and simplicity of processes and procedures N S.E. Accountability of Ofcials N S.E. Transparency in CTD N S.E. Knowledge of Ofcials N S.E. Predictability of outcome N S.E. Complaint handling mechanism & problem resolution N S.E. Ability to inuence policies, rules and procedures Computerized 3.56 52 .136 3.40 52 .170 3.12 52 .175 3.39 51 .161 3.29 52 .183 3.33 52 .166 2.96 51 .170 2.98 50 .188 3.52 52 .166 2.71 51 .203 3.00 52 .190 2.78 50 .192 2.86 Manual 2.63 52 .165 2.52 52 .144 2.98 52 .166 2.71 51 .146 2.79 52 .172 2.96 52 .155 3.08 51 .168 2.96 50 .164 2.67 52 .145 3.20 51 .161 2.67 52 .162 2.94 50 .184 2.92 -.059 NS -.160 NS .327 NS -.490 ** .846 ** .020 NS -.118 NS .365 * .500 ** .686 ** .135 NS .885 ** Change (C-M) .923 Signicance **

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Impact Assessment of Commercial Taxes Computerization 2010-Rajasthan

Overall Assessment N S.E Convenience of location of centre/ofce - accessibility N S.E Courtesy and helpfulness of Ofcials N S.E. Convenience of working hours N S.E. Queuing system at CTD Ofce N S.E. Level of corruption N S.E. Adherence to Citizen Charter N S.E. Dependence on Ofcials N S.E.

Computerized 51 .190 3.84 51 .162 3.16 51 .159 2.65 51 .177 3.29 48 .195 2.65 51 .177 2.82 51 .187 3.22 51 .191

Manual 51 .177 3.39 51 .171 2.92 51 .150 2.78 51 .166 2.46 48 .168 2.20 51 .166 2.41 51 .151 2.45 51 .169

Change (C-M)

Signicance

.451

**

.235

NS

.137

NS

.833

**

.451

**

.412

**

.765

**

458

Impact Assessment of Commercial Taxes Computerization 2010-Rajasthan

Composite Score
Table 25: Composite Score Respondents who Considered Factor to be Among Three Most Important Column No. Factor a Number b Percentage (Column a/ Total of Column a) Average of Individual Scores Improvement

c Computerized

d Manual

e Difference (Column c Column d)

F Weighted Score (Column e X Column b) 0.05133 0.00351 0.039788 0.0255 0.01387 -0.00071 0.00102 0.054144 -0.03479 0.016677 -0.00512 -0.00153 0.011726 0.010575 0.004384 0.026656 0.063591 0.007828 0.039015 0.440068

Time and effort in availing service Overall experience of availing service from CTD Overall quality of governance Overall quality of service Durability and legibility of statutory forms Clarity and simplicity of processes and procedures Accountability of Ofcials Transparency in CTD Knowledge of Ofcials Predictability of outcome Complaint handling mechanism & problem resolution Ability to inuence policies, rules and procedures Convenience of location of centre/ofce - accessibility Courtesy and helpfulness of Ofcials Convenience of working hours Queuing system at CTD Ofce Level of corruption Adherence to Citizen Charter Dependence on Ofcials Total (Sum of column)

9 4 9 8 6 1 8 10 11 8 5 4 4 7 5 5 22 3 8 156

5.8% 2.6% 5.8% 5.1% 3.8% .6% 5.1% 6.4% 7.1% 5.1% 3.2% 2.6% 2.6% 4.5% 3.2% 3.2% 14.1% 1.9% 5.1% 100.0%

3.4 3.12 3.39 3.29 3.33 2.96 2.98 3.52 2.71 3 2.78 2.86 3.84 3.16 2.65 3.29 2.65 2.82 3.22

2.52 2.98 2.71 2.79 2.96 3.08 2.96 2.67 3.2 2.67 2.94 2.92 3.39 2.92 2.78 2.46 2.2 2.41 2.45

0.885 0.135 0.686 0.5 0.365 -0.118 0.02 0.846 -0.49 0.327 -0.16 -0.059 0.451 0.235 0.137 0.833 0.451 0.412 0.765

459

Impact Assessment of Commercial Taxes Computerization 2010-Rajasthan

SECTION F: Suggestions
Table 26: Suggestions for improving online services Suggestions to improve e-services Eliminate practice of submission of hard copy of CTD Server speed should be increased Tax consultants should be allowed to make E-payment on behalf of clients Maintenance of website should not be done during ofce hour CTD ofcials should be given adequate training, so that they can handle queries on online services efciently Involve more banks in e-payment Provide templates (w.r.t. returns) that can perform data verication ofine Changes in processes/templates should be immediately communicated In case of discrepancy in data/documents submitted by dealers, CTD should intimate them at the earliest Mistakes in database maintained by CTD w.r.t addresses of dealers should be rectied Total N 43 39 11 17 26 29 19 30 25 1 240 Percent 17.9% 16.3% 4.6% 7.1% 10.8% 12.1% 7.9% 12.5% 10.4% .4% 100.0% Percent of Cases 82.7% 75.0% 21.2% 32.7% 50.0% 55.8% 36.5% 57.7% 48.1% 1.9%

Table 27: Suggestions for increasing usage of online services Suggestions to increase use of e-service Awareness campaigns on online services for dealers Establishment of common service centres to facilitate e-services to all Online processes should be made much more user friendly and Total N 43 27 42 112 Percent 38.4% 24.1% 37.5% 100.0% Percent of Cases 82.7% 51.9% 80.8%

460

Tamil Nadu Impact Assessment of Commercial Taxes Computerization 2010

Acknowledgments
We express our sincere thanks to the Department of Information Technology, Government of India for giving us the opportunity to conduct the assessment. For helping us conceptualize this study, we express our foremost thanks to Mr. R. Chandrashekhar, Secretary, Department of Information Technology & Prof. Subhash Bhatnagar, Adjunct Professor, IIM, Ahmedabad. We are extremely indebted to Mr. S. P Singh, Senior Director, DIT and Ms. Radha Chauhan, Principal Consultant, DIT, for entrusting us with this study. Mr. P.K. Pujari, Commissioner, Commercial Taxes Department, Government of Gujarat, has facilitated the survey at every stage many thanks to him. Ms. Vineeta Dixit, Principal Consultant, National e-Governance Division, DIT Ms. Sulakshana Bhattacharya, DIT, Ms. Shiffy Thankam Varkey, DIT and Ms. Nupur Singh, In-charge, Center for Electronic Governance, IIMA provided us with constant help and support. We express our sincere gratitude to them. Our heart felt gratitude to all Field Supervisors and Investigators who carried out the survey.

Director, RDI

463

Table of Contents

1.0 Introduction .............................................................................................................................. 467 2.0 Prole of Respondents ............................................................................................................. 469 3.0 Awareness and Usage of Online Services ............................................................................... 469 4.0 Time, Effort and Cost of Availing Services............................................................................. 469 5.0 Overall Assessment.................................................................................................................. 485 6.0 Suggestions of Respondents .................................................................................................... 485 Annexure A: Sampling Methodology ......................................................................................... 486 Annexure A- I: Quasi-Experimental Design: Proxy Pretest Design ....................................... 490 Annexure A- II: Tamil Nadu District Map ............................................................................. 491 Annexure A- III: Selection of Zones ....................................................................................... 492 Annexure B: Interview Schedule for Dealers ............................................................................. 493 Annexure C: Interview Schedule for CTPs .................................................................................. 499 Annexure D: Tables - Dealers Using Online Services ................................................................. 505 Annexure E: Tables - CTPs Using Online Services ....................................................................525

464

Abbreviations and Acronyms


DIT Department of Information Technology

IIMA Indian Institute of Management, Ahmedabad CTP Commercial Taxes Practitioner

CTD Commercial Taxes Department

465

Executive Summary
The Commercial Taxes Department of Tamil Nadu has introduced online services including e-ling of returns and e-tax payment. The primary objective of this study was to assess the impact of online services on end users (Dealers and Commercial Taxes Practitioners). In order to gather information from end users, a survey was undertaken. Two different interview schedules were used in the survey, which covered 801 end-users in four Divisions of Tamil Nadu. This report summarizes major ndings of this survey. Awareness and Usage of Online Services Data obtained from Commercial Taxes Department, Tamil Nadu showed that about 90% dealers were ling e-returns in August 2009 this percentage must have surely increased by now (March 2010). It may, therefore, be assumed that almost all dealers in Tamil Nadu are aware of online services. Time, Effort and Cost of Availing Service: Filing Returns Preparation of documents: Total man-hours spent for preparation of documents (manually) and total cost of preparation of documents has reduced signicantly, for both categories of users (dealers and CTPs), as a result of shifting to online mode. Submitting returns to CTD: In both the modes (manual and online), users had to make at least one trip to CTD ofce. Online service, therefore, has not been successful in eliminating visits to ofce. However, w.r.t waiting time and total elapsed time in availing service, there has been signicant positive impact due to online service both waiting time and total elapsed time in availing service is signicantly less in online mode, when compared to manual mode. Time, Effort & Cost of Availing Services: Tax Payment & Obtaining Information These two online services have had signicant impact they have eliminated trips to Banks/Treasuries/ CTD Ofce and also signicantly reduced total elapsed time in availing service.

466

Impact Assessment of Commercial Taxes Computerization 2010-Tamil Nadu

1.0 Introduction
The Department of Information Technology (DIT), Government of India, is mandated to periodically assess impact of Mission Mode Projects (MMPs) on end users. In line with this, the rst round of assessment was carried out in 2008 during which some Central and State MMPs were assessed. The framework for this study was developed by the Centre for Electronic Governance (CEG) of IIMA. Eleven empanelled Market Research agencies carried out surveys among end users across India, analyzed data and presented reports. In the current round of assessment (2nd round) RDI has been entrusted with impact assessment of Commercial Taxes e-Governance Projects in ve States viz. Rajasthan, Chhattisgarh, Gujarat, Andhra Pradesh and Tamil Nadu. This report will discuss, in detail, impact of Commercial Taxes e-Governance Projects in Tamil Nadu. The broad framework for this study has been developed by IIMA. RDI was primarily responsible for conducting pilot study, developing research design and sampling methodology, modifying interview schedules (that was developed by IIMA and used in the 1st round), survey, analysis and preparation of State level reports. 1.1 Objectives of the study Commercial Taxes Department (CTD) of Tamil Nadu has introduced many online services1 for dealers including e-ling of returns, e-tax payment and applications for statutory forms. This study was commissioned primarily to assess the impact of online services on end users. The interview schedule designed for the study has ve major sections, each with specic objectives: 1. User Prole: To form a prole of end users - dealers and Commercial Taxes Practitioners (CTPs). 2. Awareness and Usage of Online Services: To understand the extent of awareness and usage of various online services. In addition, this section will also give information as to why certain users prefer online services over manual services. 3. Time, Effort and Cost of Availing Services: To assess the impact of online services on factors including number of trips for availing service, waiting time, salary/wages spent for availing service, total payment made and total elapsed time in availing service. 4. Overall Assessment: Perception of users regarding certain key attributes of the service delivery was captured in this section. Attributes included overall quality of service and overall quality of governance. 5. Suggestions: In this section we have captured suggestions of users on improving online services and increasing usage of online services.
__________ 1

Electronic service delivery launch date: January 2008

467

Impact Assessment of Commercial Taxes Computerization 2010-Tamil Nadu

1.2 Research design and sampling methodology


Table 1: Percentage of Online and Manual Users (1st April 08 to 31st May 09) Service Filing of returns (1/4/2008 to 1/7/2009)2 Information Dissemination3 (Aprox. Figures) Application of statutory and other forms4 Application for Registration/Cancellation5 Application for Refunds6 E-submission of declaration form* Issue of VAT Forms2 Source: Commercial Taxes Department, Tami Nadu VAT (%) Manual Online 28% 72% 60% 40% 100% 100% 100% 90% 0 10% 100% CST (%) Manual Online NA NA 60% 40% 100% 100% 100% 90% 100% 10% 0

There were several factors that had to be taken in to account while developing research design and sampling methodology for this study: 1. There was only one major online service in Tamil Nadu in July 2009: e-returns. Table 1 give details of online services in the State and service wise percentage of users. 2. As of August 2009, almost 90% dealers (80% mandatory dealers +10% voluntary) were ling returns online. Only 10% dealers were ling manual returns. 3. During pilot study we understood that many dealers in Tamil Nadu relied (either partially or fully) on Commercial Taxes Practitioners (CTPs) for availing services. Users of online services would therefore include Dealers and CTPs (who were availing service on behalf of their clients) and we had to cover both categories of users in this study. After factoring in the above mentioned points, Proxy Pretest Design, a type of Quasi-Experimental Design was adopted for the study. Multi Stage Random Sampling has been used in this study. The sampling methodology factored in activity level and geographical location for selection of Divisions and Zones. Please refer Annexure A for details on research design and sampling methodology. 1.3 Interview schedules Two interview schedules were used in this study there were separate interview schedules for dealers and CTPs. Interview schedules are given in Annexure B & C.
__________ 2 Percentage calculated from data provided by CTD. E-returns is mandatory for 100% Input Tax Credit dealers or dealers with annual turnover of more than one crore 3 Including application tracking 4 Only application can be made online forms are send through courier service. Online application for statutory and other forms started after April 09 5 Only application can be made online it is not an end-to-end service - started after April 09 6 Only application can be made online it is not an end-to-end service - started after April 09

468

Impact Assessment of Commercial Taxes Computerization 2010-Tamil Nadu

2.0 Prole of Respondents


The survey covered 801 respondents (Dealers: 603 and CTPs: 198) in four Divisions of Tamil Nadu. Detailed questionnaire wise tables are given in Annexure D - E.

3.0 Awareness and Usage of Online Services


Corresponding to the research design (Proxy Pretest Design using recall method), we interviewed users who had used both online and manual services. Therefore all respondents were aware of online services. According to the CTD of Tamil Nadu, about 90% dealers were ling e-returns in August 2009 this percentage must have surely increased by now (March 2010). It may therefore be assumed that almost all dealers in Tamil Nadu are aware of online services. All respondents (CTPs and Dealers) were aware of e-returns and had used this service. About three-quarter of dealers (75%) were aware about the service: online information dissemination and half were aware of the service: online application for registration. Among CTPs, there was high awareness (>70%) on the following services: Online application for registration, e- tax payment and online information dissemination

3.1 Reasons for low usage of Online Services Major reasons given by Dealers & CTPs for using online services are: Online process is faster It is mandatory Online process is more transparent Fewer visits to commercial taxes department Online process is more secure Fewer errors in online process

Detailed (questionnaire wise) tables are given in Annexure D & E.

4.0 Time, Effort and Cost of Availing Services


In this section we shall analyze time, effort and cost incurred in availing the following services: Filing of Returns, Tax Payment and Obtaining Information from CTD. Other services could not be analyzed as there werent sufcient responses on them.

469

Impact Assessment of Commercial Taxes Computerization 2010-Tamil Nadu

4.1 Filing Returns (Optional Online Service) Dealers registered with the CTD are required to le returns periodically, monthly/ bi-monthly/ quarterly/annually depending on turnover of dealer, in a prescribed format. Filing Returns has two major components: I. Preparation of documents: Time and cost in compiling data, preparation of documents and data entry in online template II. Submitting returns to CTD: Time and cost in submitting return documents to CTD and getting receipt of submission Most dealers take help from CTPs for either one or both components mentioned above, mainly because: dealers lack sufcient knowledge to prepare returns; they want to ensure that the data submitted to CTD is free of errors. There are several differences between manual and online mode of ling of returns. Major differences are given below:
Table 2: Differences between manual and online mode of ling of returns Manual Online

1.

2.

3.

4.

Return documents are prepared manually 1. Dealer compiles data, which is to be submitted to CTD, manually. (using various forms such as VAT forms, CST forms) in the format specied by the 2. Dealer has to login to his/her account on the department website of the department and enter data online. The dealer also has to upload excel les of sales/purchase details. Unlike other States, Dealer submits the original return docuin Tamil Nadu data entry template cannot be ments to CTD. After verication of return downloaded as a result data entry is done documents by the clerk/CTI, the dealer reonline. ceives a receipt of submission 3. After uploading data, dealer receives an acknowledgement from CTD An ofce copy of the return documents is 4. Dealer has to submit a hard copy of the remaintained by the Dealer turn (print out of template) to CTO Ofce and receive a receipt of submission - receipt is given without verication as the dealer has There is no service charge for ling returns already submitted return online 5. There is no service charge for ling returns

Respondents were asked to provide details on time, effort and cost incurred in ling returns. Responses of 603 dealers and 198 CTPs have been analyzed using Paired-Samples T Test and results are given in sections 4.1.1 and 4.1.2. Please refer Annexure D & E for details.

470

Impact Assessment of Commercial Taxes Computerization 2010-Tamil Nadu

4.1.1 Time and Cost of Preparation of Documents for Filing of Returns Total man-hours for preparation of documents (manually)

Table 3: Total man-hours for preparation of documents for Filing of Returns Filing Returns Dealer CTP Manual 3.8571 3.101 Computerized 2.418 2.1384 Change (C-M) -1.43905 -.96263 Signicance ** **

Total man-hours for preparation of documents


5 4 3
3.8571

2 1 0

3.101 2.418 2.1384

-0.96263

-1 -2

-1.43905

Manual

Computerized

Change (C-M)

Dealers

CTPs

Total man-hours spent for preparation of documents (manually) is signicantly lesser in online mode.

471

Impact Assessment of Commercial Taxes Computerization 2010-Tamil Nadu

Total cost of preparation of documents

Table 4: Total cost of preparation of documents (INR) Filing Returns Dealer CTP Manual 547.18 301.61 Computerized 480.13 245.29 Change (C-M) -67.048 -56.318 Signicance ** **

Total Cost of Preparation of Documents (INR)


600

500

547.18 480.13

400

300

200

301.61 245.29

100

-67.048
-100

-56.318

Manual Delers

Computerized

Change (C-M) CTPs

Total cost of preparation of documents has reduced signicantly for both categories of users (dealers and CTPs) as a result of shifting to online mode.

472

Impact Assessment of Commercial Taxes Computerization 2010-Tamil Nadu

4.1.2 Time and Cost of Submitting Documents for Filing Returns Number of trips for Filing Returns
Table 5: Number of trips Filing Returns Dealer CTP Manual 1 1.04 Computerized 1 1.01 Change (C-M) -.002 -.030 Signicance NS **

1.2

Number of Trips

1.04
0.8

1.01

1
0.6

0.4

0.2

-0.002
0

-0.03
-0.2

Manual Dealers

Computerized

Change (C-M) CTPs

In the online mode users have to make at least one trip to CTD ofce to submit hard copy of returns.

473

Impact Assessment of Commercial Taxes Computerization 2010-Tamil Nadu

Waiting time7 for Filing Returns


Table 6: Waiting time (Minutes)
Filing Returns Dealer CTP Manual 66.89 50.7 Computerized 39.92 31.87 Change (C-M) -26.964 -18.828 Signicance ** **

60

Amount spent as salary/wages on total time spent in availing service

50 49.71 40 48.11 48.33 45.18

30

20

10 1.604 0 3.152

Manual
Dealers

Computerized

Change (C-M)
CTPs

Waiting time has reduced signicantly - this is because hard copies of returns submitted by online users are not scrutinized at the counter.

__________
7

Time spent in queue and transaction time at counter

474

Impact Assessment of Commercial Taxes Computerization 2010-Tamil Nadu

Amount spent as salary/wages on total time spent in availing service8

Table 7: Amount spent as salary/wages on total time spent in availing service (INR) Filing Returns Dealer CTP Manual 48.11 45.18 Computerized 49.71 48.33 Change (C-M) 1.604 3.152 Signicance * **

60

Amount spent as salary/wages on total time spent in availing service

50 49.71 40 48.11 48.33 45.18

30

20

10 1.604 0 3.152

Manual
Dealers

Computerized

Change (C-M)
CTPs

Amount spent as salary/wages on total time spent in availing service has increased slightly. This is because online users have to spend time on online transaction and also submit hard copies of returns manually to CTD.

___________ 8

Traveling time + waiting time + time for online transaction (man-hours spent X wage per man-hour)

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Impact Assessment of Commercial Taxes Computerization 2010-Tamil Nadu

Total payment made9 for Filing Returns

Table 8: Total payment Made (INR) Filing Returns Dealer CTP Manual 17.45 .00 Computerized 17.19 .00 Change (C-M) -.267 .00 Signicance NS

Total payment made (INR)


20 18 16 14 12 10 8 6 4 2 0 -2 -0.267 0 0 0 17.45 17.19

Manual
Dealers

Computerized

Change (C-M)
CTPs

Dealers: As there is no service charge and as none of the dealers paid bribe, the only payment made is to CTPs. CTPs: None of the CTPs made any payment for this service.

__________ 9

Includes a) service charge paid to CTP, b) amount paid to department for which receipt was given, and c) amount paid as bribe to department staff/ functionaries

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Impact Assessment of Commercial Taxes Computerization 2010-Tamil Nadu

Total elapsed time in availing service


Table 9: Total elapsed time in availing service Filing Returns Dealer CTP Manual 2.8891 2.4651 Computerized 1.8584 1.9217 Change (C-M) -1.03068 -.54338 Signicance ** **

Total Elapsed Time in Availing Service (Hours)


3.5 3 2.5 2 1.5 1 0.5 0

2.8891 2.4651 1.9217 1.8584

-0.54338
-0.5 -1 -1.5

-1.03068

Manual

Computerized

Change (C-M)

Total elapsed time has reduced signicantly. This is mainly because of reduction in waiting time at CTD ofce.

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Impact Assessment of Commercial Taxes Computerization 2010-Tamil Nadu

4.2 Tax Payment Dealers have to make periodic Tax Payments to CTD as per the tax calculated in the returns led by them. Major difference between Manual and Online Tax Payment is given below: Manual Payment is accepted in Banks/Treasuries Online Dealers can make payment online through their online Bank Accounts10. There is no need to visit Bank/Treasury to make payDealers have to ll challan (Banks/Treasuries) - ment giving payment details e-forms are lled by dealers (giving payment One has to go in person to Banks/Treasuries and details) and after this the software leads user stand in queues to make payment at least one trips to selected Banks gateway is required for this After online payment, hard copy of e-challan is provided through Banks interface, which can be printed and provided to CTD, as is Tax payment receipt (challan) is submitted to CTD done with the regular challan this is done along with submission of returns and therefore dealers do not make separate trips for this. Hard copy of the e-challan is submitted to CTD this is done along with submission of returns and therefore dealers do not make separate trips for this.

Responses of 63 dealers, regarding Tax Payment, have been analyzed using Paired-Samples T Test. Please note that in the case of CTPs, responses on Tax Payment were not sufcient for analysis.

__________ 10

The online account has to be in a Bank that is identied by CTD for the purpose of e-payment

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Impact Assessment of Commercial Taxes Computerization 2010-Tamil Nadu

Number of trips to Bank/Treasury


Table 10: Number of trips Tax Payment Dealer Manual 1.00 Computerized .00 Change (C-M) -1 Signicance **

1.5

Number of Trips

0.5

1
0

-0.5

Manual

Computerized

Change (C-M)
-1

-1

-1.5

In the online mode, users make payment through their online Bank Account. There is no need to visit Bank or treasury to make payment thus users save travel and waiting time and travel cost.

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Impact Assessment of Commercial Taxes Computerization 2010-Tamil Nadu

Amount spent as salary/wages on total time spent in availing service


Table 11: Amount spent as salary/wages on total time spent in availing service11 (INR) Tax Payment Dealer Manual 32.54 Computerized 12.76 Change (C-M) -19.778 Signicance **

40

Amount spent as salary/wages on total time spent in availing service

30 32.54 20

10 12.76 0

Manual
-10

Computerized

Change (C-M)
-19.778

-20

-30

In the online mode, users do not have to make any trips or spent time traveling or waiting. Therefore they spend lesser on salary/wages.

__________ 11

Traveling time + waiting time + time for online transaction (man-hours spent X wage per man-hour)

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Impact Assessment of Commercial Taxes Computerization 2010-Tamil Nadu

Total payment Made


Table 12: Total payment Made (INR) Tax Payment Dealer Manual .00 Computerized .00 Change (C-M) .00 Signicance NS

Dealers did not make any payment - none of the dealers paid service charge to CTPs or bribes.

Total elapsed time in availing service


Table 13: Total elapsed time in availing service Tax Payment Dealer Manual 1.3237 Computerized .4735 Change (C-M) -.85016 Signicance **

Total Elapsed Time in Availing Service (Hours)


1.5

1 1.3237

0.5 0.4735 0

-0.85016 -0.5

Manual
-1

Computerized

Change (C-M)

Total elapsed time has reduced signicantly, because in the online mode users need not visit bank/ treasury to make payments.

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Impact Assessment of Commercial Taxes Computerization 2010-Tamil Nadu

4.3 Obtaining Information from CTD Dealers and CTPs regularly seek information from CTD this may be regarding circulars, notications, commodities rates, acts, rules, tracking applications etc. In the manual mode, dealers/CTPs need to visit Ofce of CTD to obtain this information. In the online mode, however, most of this information is available on the website of CTD. In case the information sought is not available on the website, users can contact concerned ofcials through e-mail and obtain it. Responses of 500 dealers and 151 CTPs, regarding this service, have been analyzed using PairedSamples T Test. Number of trips to CTD Ofce
Table 14: Number of trips Obtaining Information Dealer CTP Manual 1.00 1.00 Computerized .00 .00 Change (C-M) -1 -1 Signicance ** **

1.5

Number of Trips

0.5

1
0

-0.5

Manual

Computerized

Change (C-M)
-1 -1

-1

-1.5

Dealers

CTPs

In the online mode, users did not visit CTD ofce for seeking information it was obtained either from website or through e-mails.

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Impact Assessment of Commercial Taxes Computerization 2010-Tamil Nadu

Amount spent as salary/wages on total time spent in availing service


Table 15: Amount spent as salary/wages on total time spent in availing service12 (INR) Obtaining Information Dealer CTP Manual 32.74 33.49 Computerized 12.27 12.55 Change (C-M) -20.470 -20.940 Signicance ** **

40

Amount spent as salary/wages on total time spent in availing service


33.49 32.74

30

20

10 12.27 0

12.55

Manual
-10

Computerized

Change (C-M)
-20.47 -20.94

-20

-30

Dealers

CTPs

Amount spent as salary/wages has decreased signicantly as the need to visit CTD ofce has been eliminated.

______
12

Traveling time + waiting time + time for online transaction (man-hours spent X wage per man-hour)

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Impact Assessment of Commercial Taxes Computerization 2010-Tamil Nadu

Total payment Made


Table 16: Total payment Made (INR) Obtaining Information Dealer CTP Manual .16 .00 Computerized .16 .00 Change (C-M) .00 .00 Signicance NS NS

While CTPs did not make any payment in both the modes, dealers made some payment (service charge to CTPs) for obtaining information.

Total elapsed time in availing service


Table 17: Total elapsed time in availing service Obtaining Information Dealer CTP Manual 1.3894 1.5783 Computerized .4795 .4352 Change (C-M) -.90982 -1.14311 Signicance ** **

Total Elapsed Time in Availing Service (Hours)


2

1.5 1.5783 1 1.3894 0.5 0.4795 0 -0.90982 -0.5 -1.14311 0.4352

-1

Manual

Computerized

Change (C-M)

-1.5

Dealers

CTPs

Total elapsed time in availing service has reduced signicantly as users can obtain information from their ofces - without visiting CTD ofce.

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Impact Assessment of Commercial Taxes Computerization 2010-Tamil Nadu

5.0 Overall Assessment


Dealers and CTPs were asked to rate some attributes13 w.r.t services provided by CTD on a ve point scale respondents had to rate each attribute w.r.t manual and online modes of service delivery. Paired-Samples T Test was used for analysis. Analysis showed that the difference of mean scores (of manual and online modes) was statistically signicant in the case of all 23 attributes this was true for both categories of users (dealers and CTPs). Moreover, online mode was rated higher than manual mode in all attributes this shows that users prefer online mode over manual mode. Composite Score Interview schedule wise Composite Scores were calculated based on information collected from the section: Overall Assessment. Results are given in the gure below:

Composite Score
Dealers
0.6 0.5 0.4 0.3 0.2 0.1 0 0.342011 0.498702

CTPs

6.0 Suggestions of Respondents


Major suggestions for improving online services 1. Eliminate practice of submission of hard copy to CTD (w.r.t e-ling) 2. Server speed should be increased 3. CTD ofcials should be given adequate training, so that they can handle queries on online services efciently 4. Provide templates (w.r.t. returns) that can perform data verication ofine 5. Changes in processes/templates should be immediately communicated to users Major suggestions to increase use of e-service 1. Awareness campaigns on online services for users 2. Establishment of common service centres to facilitate e-services to all 3. Online processes should be made much more user friendly & simple
_________
13

There were 23 attributes for dealers and CTPs

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Impact Assessment of Commercial Taxes Computerization 2010-Tamil Nadu

Annexure A

Sampling Methodolog Y Tamil Nadu


1.1 Introduction For administrative convenience, the State has been divided into Divisions, Zones/CT Districts and Circles. Each Division has been divided into Zones/CT Districts and each Zone/CT District into Circles, which are basic units of tax administration. There are 10 Divisions, 40 Zones and 323 Assessment Circles (out of which, 236 circles are headed by Commercial Tax Ofcers and 81 by Deputy Commercial Tax Ofcers), including 6 Fast Track Assessment Circles (4 in Chennai and 2 in Coimbatore) in the Assessment Wing, headed by Assistant Commissioners. Online services in Tamil Nadu and service wise percentage of users are given below:
Tab le 1: Percentage of Online and Manual Users in Financial year (2008-2009) Service VAT (%) M 28% (51893) 60% 100% 100% 100% O 72% (132417) 40% M NA 60% 100% 100% 100% CST (%) O NA 40%

Filing of returns (1/4/2008 to 1/7/2009)14 Information Dissemination15 (Aprox. Figures) Application of statutory and other forms16 Application for Registration/Cancellation17 Application for Refunds
18

Source: Commercial Taxes Department, Tamil Nadu

Discussion with ofcials revealed the following: Currently (as of August 2009) in Tamil Nadu almost 90% (80% mandatory dealers +10% voluntary) dealers are ling returns online. Only 10% dealers are ling manual returns Those ling manual returns are small dealers mostly from villages with no computer facility. These dealers will be covered only after CSCs become operationa

__________

Percentage calculated from data provided by CTD. E-returns is mandatory for 100% Input Tax Credit dealers or dealers with annual turnover of more than one crore 15 Including application tracking 16 Only application can be made online forms are send through courier service. Online application for statutory and other forms started after April 09 (recently). 17 Only application can be made online it is not an end-to-end service - started after April 09 (recently). 18 Only application can be made online it is not an end-to-end service - started after April 09 (recently).

14

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Impact Assessment of Commercial Taxes Computerization 2010-Tamil Nadu

1.2 Research Design Finding comparison group will be difcult because 90% of dealers are ling online returns Finding comparison groups for Large and Medium dealers will be difcult as almost all of them are ling E-returns Considering the above mentioned points Proxy Pretest Design will be adopted for this impact assessment study (please refer Annexure A I). 1.3 Selection of Divisions Selection of Divisions was done on the basis of activity levels i.e. total number of dealers who led Online VAT Returns (e-returns) from 1/4/2008 to 1/7/2009. Divisions were arranged in descending order of the total number of dealers who led Online VAT Returns. Then they were divided in quartiles and one Division was selected from each quartile. Please note that geographical location was taken into account while selecting divisions so as to ensure maximum dispersion (please see Annexure A II)
Table 2: Selection of Divisions Quartile Division Coimbatore Chennai South Salem Total Madurai Tirunelveli Chennai Central Total Trichhy Chennai North Chennai East Total Vellore G. Total Dealers ling e-returns 35285 15782 15002 6606 13783 12241 10060 36084 8574 7886 7644 24104 6160 132417 Percentage Selected Division No. of Respondents

Quartile I

49.9%

Coimbatore

304

Quartile II

27.3%

Tirunelveli

208

Quartile III

18.2%

Chennai East

192

Quartile IV

4.7% 100%

Vellore

96 800

Note:
1.

Sample size in each selected Division is proportionate to the number of users in the quartile in which it falls According to calculation (Sample size of quartile = proportion of activity level X total sample size) we had arrived at the following sample size for each quartile: Quartile 1 (Div Coimbatore) = 399; Quartile 2 (Div Tirunelveli) = 218; Quartile 3 (Div Chennai East) = 145; Quartile 4 (Div Vellore) = 38. However, we felt that the sample size in Quartile 3 and 4 needs

2.

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Impact Assessment of Commercial Taxes Computerization 2010-Tamil Nadu

to be increased. Therefore, sample size in Quartile 1 and 2 have been reduced slightly and that of Quartile 3 and 4 have been increased. 1.4 Selection of Zones Zones (within each Division) were arranged according to their activity level, divided in quartiles and selected randomly (please refer Annexure A III). In all, 15 Zones covered in 4 Divisions.

Table 3: Selection of Zones Selected Division Selected Zones Tiruppur Coimbatore-I Coimbatore Pollachi Uthagamandalam Tirunelveli Sivakasi Tirunelveli Tuticorn Nagercoil Zone-VI Chennai East Zone-IX Zone-V Vellore Thiruvannamalai Vellore Cuddalore Villupuram

1.5 Selection of Circles Within each selected Zones has been selected two Circles on the basis of their distance from Zones. One Circle is near the Zones and the other is far from the Zones Ofcials at Zones Level consulted in selecting Circles. In all, 30 Circles covered in 15 Zones. 1.6 Selection of Respondents from Circles At the Circle Level, two locations selected on the basis on their distance from circle one far and the other near. Then, a list of Dealers and CTPs were prepared in the selected locations and randomly select respondents from this list.

488

Impact Assessment of Commercial Taxes Computerization 2010-Tamil Nadu

1.7 Total Sample Size


Table 4: Total Sample Size Selected Division Selected Zone Tiruppur Coimbatore-I Coimbatore Pollachi Uthagamandalam Tirunelveli Sivakasi Tirunelveli Tuticorn Nagercoil Zone-Vi Chennai East Zone-Ix Zone-V Vellore Thiruvannamalai Vellore Cuddalore Villupuram 4 Zones X 2 = 8 96/8 = 12 3 Zones X 2 = 6 192/6 = 32 4 Zones X 2 = 8 208/8 = 26 4 Zones X 2 = 8 304/8 = 38 No. of Circles Sample Size/Circle

Out of the total respondents (800), 75% (600 respondents) are dealers and 25% (200 respondents) are CTPs.

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Impact Assessment of Commercial Taxes Computerization 2010-Tamil Nadu

Annexure A I

Quasi-Experimental Design: Proxy Pretest Design

0-1 X 0-2
O - 1 is administration of a measure (recollection) X depicts the implementation of a program O - 2 is administration of a measure (current) The proxy pretest design looks like a standard pre-post design. But theres an important difference. The pretest in this design is collected after the program is given a proxy variable is used to estimate where the groups would have been on the pretest. In Recollection Proxy Pretest Design you ask the participants to estimate where their pretest level would have been. For instance, you might ask participants to complete your measures estimating how you would have answered the questions six months ago. This type of proxy pretest is not very good for estimating actual pre-post changes because people may forget where they were at some prior time or they may distort the pretest estimates to make themselves look better. However, there may be times when you are interested not so much in where they were on the pretest but rather in where they think they were. The recollection proxy pretest would be a sensible way to assess participants perceived gain or change. The proxy pretest design is not one you should ever select by choice. But, if you nd yourself in a situation where you have to evaluate a program that has already begun, it may be the best you can do and would almost certainly be better than relying only on a posttest-only design.

Reference Trochim, William M. The Research Methods Knowledge Base, 2nd Edition. Internet WWW page, at URL: http://www.socialresearchmethods.net/kb/ (version current as of October 20, 2006)

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Impact Assessment of Commercial Taxes Computerization 2010-Tamil Nadu

Annexure A- II

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Impact Assessment of Commercial Taxes Computerization 2010-Tamil Nadu

Annexure A- III Selection of Zones


Selected Division Tiruppur Coimbatore-III Coimbatore Coimbatore-I Coimbatore-II Pollachi Uthagamandalam Tirunelveli Sivakasi Tirunelveli Tuticorn Nagercoil Virudhunagar Chennai East Zone-VI Zone-IX Zone-V Vellore Thiruvannamalai Vellore Cuddalore Villupuram *1/4/2008 to 1/3/2009 Source: Commercial Taxes Department, Tamil Nadu 1112 1000 Cuddalore Villupuram Zone E-Return Dealers* 6324 5943 4062 3850 1410 553 2622 2493 1976 1356 1010 1806 1764 1705 1900 1349 Zone-VI Zone-IX Zone-V Vellore Thiruvannamalai Pollachi Uthagamandalam Tirunelveli Sivakasi Tuticorn Nagercoil Coimbatore-I Selected Zone Tiruppur

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Impact Assessment of Commercial Taxes Computerization 2010-Tamil Nadu

Annexure - B

Tamil Nadu: Interview Schedule for Dealers


A. Sl. No. State State Code District IDENTIFICATION DETAILS District Code Date of Interview (DD/MM) Distance from Circle Ofce (Km.) Address of Dealer with landmark Land : Mobile: Phone Town/Village Location of Ofce Code Rural..1 Urban.2 TIN Respondents Name & Designation Interviewer Name Code Signature Name Code Signature Editor Supervisor Name Code Signature Zone Division Division Code Zone code Circle Circle code

1B.

B. DEALER PROFILE Please specify the Constitution of your enterprise Proprietor.1 Partnership..2 Private Limited Company..3 Public Limited Company4 Hindu Undivided Family............5 Co-operative Society..6 Government Undertaking..7

2B.

Please specify the type of business19

Others (Specify) Manufacture.1 Wholesale.2 Retail.3 Export...4 Hire Purchase..5 Works Contract....6 Leasing.7 Hotels8 Food & Drink.9 Others (Specify)

__________ 19

As per Commercial Tax Department records

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Impact Assessment of Commercial Taxes Computerization 2010-Tamil Nadu

3B.

What was the annual turnover in Financial Year: 2008-09 (INR)

4B.

Please give details of Commercial Taxes paid in Financial Year: 2008-09 (INR) VAT CST

Tax Yes-1 Yes-1

Registered No-2 No-2

Amount Paid (INR)

5B.

Please specify the mode in which Books of Accounts Manual .....1 Computerized...2 are maintained within the organization Not maintained at all.3 Number of staff in your organization who are involved in activities related to Commercial Taxes

6B.

C.

AWARENESS AND USAGE OF ONLINE SERVICES Newspaper...1 Television.2 Other Dealers...3 CTPs.....4 Commercial Tax Dep. Ofcial......5 Others (Specify)

1C. Please specify the rst source of awareness about online services provided by Commercial Taxes Department

2C. Which are the online services provided by Commercial Taxes Department? (Multiple Responses)

Application for Registration....1 Application for issue of forms2 Application for refund......3 Filing Returns...4 Payment of Taxes..5 Information Dissemination...6 Others (Specify)

3C. Please give details regarding online services used and frequency of use Frequency of Use Fortnightly.1 Monthly. 2 Quarterly3 Annually..6 Others (Specify)

Online Service Filing Returns Seeking information Payment of Taxes Application for forms Others (Specify)

Used/Not Yes-1 No-2 Yes-1 Yes-1 Yes-1 Yes-1 No-2 No-2 No-2 No-2

Frequency

4C. What are the reasons for using online service (s) (Multiple Responses)

Online process is faster ...........1 Online process is more secure......2 Fewer errors in online process......3 Fewer visits to Commercial Taxes Department........4 Online process is more transparent.......5 It is mandatory..6 Others (Specify)

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Impact Assessment of Commercial Taxes Computerization 2010-Tamil Nadu

D. TIME AND EFFORT AND COSTS OF AVAILING SERVICES Online Manual Please provide the following details with reference to services that you have availed through online and manual modes: 1D. Services Availed: Filing of Returns.1 Getting information from CTD...2 Payment of Taxes3 Application for forms (CST)...4 2D. 3D. Others (Specify) Date of availing service specify month and year Were processes related to the service outsourced? No, it was done completely in-house 1 4D. 5D Yes, it was partially done by CTP 2 What are the reasons for depending on CTP (Multiple responses) Due to lack of sufcient knowledge on processes..........................1 To ensure accuracy of data given to Department............................2 Want to avoid interface with Dep. Ofcials........................3 Do not want to spent time on this........................4 Others (Specify) D-1: Time and Effort and Cost of Preparation of Documents 5D. 6D. (This section only applicable for the services: Filing of Returns) How many man-hours were spent in completing various forms and preparing supporting documents? Please calculate the amount spent as salary/wages for preparation of documents 7D. 8D. 9D. 10D. 11D. (Total man-hours spent X wage per man-hour) {INR} Cost of stationery20, photocopies and/or internet charges w.r.t service availed {INR} Cost of Statutory Forms and other Forms including courier charges (INR) Service charge paid to Tax Consultant (INR) (NOT APPLICABLE IF DONE IN-HOUSE: PLEASE SEE 3D) Total cost of preparation of documents (INR)

Online

Manual

12D.

D-2: Time and Effort and Cost of Availing Services From Commercial Taxes Department How many trips did you need to make to Commercial Tax Ofce for the service including trips for error correction? Trip Purpose Time Purpose Time Purpose Time Purpose Purpose of each trip and time spent waiting I at CTD Ofce (Including time spent in queue & transaction time at counter) for availing service - (min) To submit documents..1 To collect certicate2 To correct error in certicate/document issued by CTD.......3 To correct errors in documents submitted by Dealer/Tax Consultant.................4 To track application......................5 To seek information.......6 To bank/treasury for making payment - Challan (applicable only for payment)........7 To fulll requirement of physical presence..8 Others (Specify) II III IV V

Time

____________ 20

Ledgers, CDs, printing paper, printing ink, carbon paper etc.

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Impact Assessment of Commercial Taxes Computerization 2010-Tamil Nadu

13D.

Please see 11D if the number of trips is more than one, then ask: Why did you have to make more that one trip? It was required as per CTD procedure..1 To follow up, as there was delay on the part of CTD to provide service2 Could not avail service in previous visit (s) as there was a long queue.3 Concerned functionary was not available....4 Counter was not operational5 Documents/application submitted by me were incomplete6 Others (Specify) Do you think you had to wait excessively for availing service in any of the trips? Yes 1 No 2 16D Please specify the reasons for excessive wait Long queue.1 Ofcials of CTD are inefcient (slow in processing).2 Processes are too complex & takes lot of time to complete....3 Too many applicants at ofce..4 Badly managed queue.5 Some windows/counters were not operational............6 Power breakdown................7 Computer/network connectivity failure...........8 Others (Specify) Please specify the travel cost incurred in making a round trip to CTD Ofce (INR) Please specify the travel cost incurred in making a round trip to Bank/Treasury (INR) (APPLICABLE ONLY FOR PAYMENT) Total travel cost incurred in availing service (number of trips X travel cost per trip) INR Please specify the travel time spent in making a round trip to CTD Ofce (Min.) Please specify the travel time spent in making a round trip to Bank/Treasury (Min.) (APPLICABLE ONLY FOR PAYMENT) Total travel time spent in availing service (number of trips X travel time per trip) Min. How many times did you log-in to avail online service? Please see the previous question if the number is more than one, then ask: Why did you have to log-in more than once? Service was not available as server was slow.1 Portal was undergoing maintenance.......2 Templates had changed, therefore it had to be downloaded rst....3 Others (Specify) What was the total time taken to complete transaction Online - it does not include time taken for data entry? (Min) Do you think that the time taken to complete online transaction was excessive? Yes 1; No 2 27 D

14D.

15D.

16D. 17D.

18D. 19D. 20D.

21D. 22D. 23D.

24D. 25D.

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Impact Assessment of Commercial Taxes Computerization 2010-Tamil Nadu

26D.

Why do you think are the reasons for excessive time in online transactions? Server is slow.1 Processes are complex and time consuming..........2 Errors occur while uploading template.......3 Others (Specify) Please calculate the amount spent as salary/wages on total time spent in availing service: traveling time + waiting time + time for transaction (man-hours spent X wage per man-hour) {INR} THIS DOES NOT INCLUDE TIME TAKEN FOR FILLING FORMS, PREPARATION OF SUPPORTING DOCUMENTS AND DATA ENTRY Service Charge paid to department for which you got a receipt? (INR) Service charge paid to Tax Consultant for facilitating service from CTD Ofce (INR) (NOT APPLICABLE IF DONE IN-HOUSE: PLEASE SEE 3D) What was the total payment21 made by you for availing the service? (INR) What was the total elapsed time in availing service - how long did it take for the task to be completed, right from the date of applying to actually receiving the service applied for? (this does not include time taken for lling forms, preparation of supporting documents and data entry)? (Hours)

27D.

28D. 29D.

30D. 31D.

32D.

Did you pay a bribe directly to Ofcials? Yes-1; No-2 Part E

33D.

For what purpose did you pay the bribe? (Multiple responses) To avoid audit assessment by CT Department...1 To inuence functionaries to manipulate records in your favor.2 To expedite the process.. ..3 Others (Specify) E. OVERALL ASSESSMENT

On a 5 point scale (Dissatised-1; Somewhat dissatised-2; Neutral-3; Somewhat satised-4; Very satised-5) please rate the following attributes: Mode of Service (Online O, Manual M) 1E. Cost of availing service22 3E. Overall experience of availing service from CTD 5E. Effort in preparation of documents24 7E. Overall quality of service26 9E. Clarity and simplicity of processes and procedures 11E. Transparency27 in CTD 13E. Predictability of outcome 15E. Ability to inuence policies, rules and procedures through feedback 17E. Courtesy and helpfulness of Ofcials O M 2E. 4E. 6E. 8E. 10E. 12E. 14E. 16E. 18E. Mode of Service (Online O, Manual M) O M Time and effort in availing service23 Condentiality and security of data Overall quality of governance25 Accuracy of transactions Accountability of Ofcials Knowledge of Ofcials Complaint handling mechanism28 & problem resolution Convenience of location of center/ofce (accessibility and ambience) Convenience of working hours

____________ 21

Includes a) service charge paid to intermediary/agency, b) amount paid to department for which receipt was given, and c) amount paid as bribe to department staff/functionaries 22 Much increased-1; Somewhat increased-2; No change-3; Somewhat decreased-4; Much decreased-5 23 Much increased-1; Somewhat increased-2; No change-3; Somewhat decreased-4; Much decreased-5 24 Much increased-1; Somewhat increased-2; No change-3; Somewhat decreased-4; Much decreased-5 25 GOVERNANCE IS UNDERSTOOD AS TRANSPARENCY, ACCOUNTABILITY AND CORRUPTION-FREE WORKING 26 QUALITY OF SERVICE IS UNDERSTOOD AS FAIRNESS, SPEED OF PROCESSING, ACCURACY OF TRANSACTIONS, LEGIBILITY AND DURABILITY OF CERTIFICATES AND PRINTOUTS, CONVENIENCE OF OBTAINING SERVICE 27 Understanding and awareness of the basis on which decisions affecting you/other users are taken by ofcials 28 Including service provided by Call centre/Helpline

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Impact Assessment of Commercial Taxes Computerization 2010-Tamil Nadu

19E. Queuing system at CTD Ofce 21E. Adherence to Citizen Charter29

20E. 22E.

Level of corruption Dependence on CTPs30

23E. Durability and legibility of certicates/receipts 24E. Among the above given factors please list the three factors that you consider the most important RECORD THE S.NO. OF THE FACTOR

1F.

F. SUGGESTIONS31 Please give your suggestions in improving online services: (Multiple Responses) Eliminate practice of submission of hard copy to CTD.....1 Server speed should be increased2 Maintenance of website should not be done during Ofce Hours of Traders/Tax Consultants..3 CTD ofcials should be given adequate training, so that they can handle queries on online services efciently..4 Provide templates(w.r.t. returns) that can perform data verication ofine.......................5 Changes in processes/templates should be immediately communicated to dealers...........6 Mistakes in database maintained by CTD w.r.t addresses of dealers should be rectied...7 Others (Specify)

2F.

Please give your suggestions to increase use of online services: (Multiple Responses) Awareness campaigns on online services for dealers......1 Establishment of Common Service Centres to facilitate E-services to all dealers....2 Online processes should be made much more user friendly and simple....3 Others (Specify)

ADDITIONAL INFORMATION: PLEASE ASK THE RESPONDENT IF HE/SHE WOULD LIKE TO MAKE ADDITIONAL COMMENTS. RECORD VERBATIM.

__________ 29 30

Adherence of the time frame for service delivery (elapsed time) to that specied in citizens charter Much increased-1; Somewhat increased-2; No change-3; Somewhat decreased-4; Much decreased-5 31 This part is for all users - manual and online

498

Impact Assessment of Commercial Taxes Computerization 2010-Tamil Nadu

Annexure - C

TAMIL NADU: INTERVIEW SCHEDULE FOR CTP


Sl. No. State State Code G. IDENTIFICATION DETAILS District District Date of Interview (DD/MM) Code Address with landmark Town/Village Distance from Circle Ofce (Km.) Location of Ofce Code Rural..1

Phone Land Line: Interviewer Name Code Signature Mobile: Editor Name Code Signature

Respondents Name & Designation Supervisor Name Code Signature

Urban.2 Division Division Code Zone Circle Zone code Circle code

1B.

Educational qualication of Tax Consultant

H. Prole of Tax Consultant FICA. - 1 LLB - 2 Others (Specify)

2B. 3B. 4B.

Years of Experience as Tax Consultant What was the annual turnover in Financial Year: 2008-09 (INR) Major services provided to clients (only those for which service charge is taken), service charge (average) SERVICE Registration 1; Filing Returns 2; Others Specify. TAX VAT -1; CST 2; Others (Specify)

Tax

Service

Service Charge (INR) Manual Online

5B. 6B.

Number of staff in your organization who are involved in activities related to Commercial Taxes Is the Tax Consultant computer literate? Yes 1 No - 2 Yes 1 No - 2 Part C

7B.

Has the Tax Consultant used any online E-Gov. service

____________ 52

This part is for all users - manual and online

499

Impact Assessment of Commercial Taxes Computerization 2010-Tamil Nadu

1C.

I. AWARENESS AND USAGE OF ONLINE SERVICES Please specify the rst source of awareness about online services Newspaper...1 provided by Commercial Taxes Department Television.2 Dealers.....3 Other CTPs......4 Commercial Tax Dep. Ofcial....5 Others (Specify) Application for Registration.....1 Application for issue of forms.2 Application for refund...3 Filing Returns...4 Payment of Taxes.5 Information Dissemination..6 Others (Specify) Online Service Filing Returns Seeking information Payment of Taxes Application for forms Others (Specify)

2C.

Which are the online services provided by Commercial Taxes Department? (Multiple Responses)

3C.

Please give details regarding online services used and frequency of use Frequency of Use Daily..1 Weekly..2 Fortnightly.3 Monthly. 4 Quarterly5 Annually..6 Others (Specify)

Used/Not Yes-1 No-2 Yes-1 No-2 Yes-1 No-2 Yes-1 No-2 Yes-1 No-2

Frequency

4C.

What are the reasons for using online service (s) (Multiple Responses)

Online process is faster ....1 Online process is more secure..2 Fewer errors in online process..3 Fewer visits to Commercial Taxes Department....4 Online process is more transparent...5 It is mandatory..6 Others (Specify)

J. TIME AND EFFORT AND COSTS OF AVAILING SERVICES Manual Please provide the following details with reference to services that you have availed Online through online and manual modes: Services Availed: 34D. Filing of Returns....1 Getting information from CTD......2 Payment of Taxes...............3 Application for forms (CST).4 Others (Specify) 35D. Date of availing service specify month and year

Online

Manual

500

Impact Assessment of Commercial Taxes Computerization 2010-Tamil Nadu

36D. 37D.

D-1: Time and Effort and Cost of Preparation of Documents (This section only applicable for the services: Filing of Returns) How many man-hours were spent in completing various forms and preparing supporting documents? Please calculate the amount spent as salary/wages for preparation of documents (Total man-hours spent X wage per man-hour) {INR} Cost of stationery32, photocopies and/or internet charges w.r.t service availed {INR} Cost of Statutory Forms and other Forms including courier charges (INR) Total cost of preparation of documents (INR)

38D. 39D. 40D.

41D.

42D.

D-2: Time and Effort and Cost of Availing Services From Commercial Taxes Department How many trips did you need to make to Commercial Tax Ofce for the service including trips for error correction? Trip Purpose Time Purpose Time Purpose Time Purpose Purpose of each trip and time spent waiting I at CTD Ofce (Including time spent in queue & transaction time at counter) for availing II service - (min) III To submit documents.......1 To collect certicate..........2 To correct error in certicate/document issued by CT...................................................3 To correct errors in documents submitted by Dealer/Tax Consultant...............................4 To track application5 To seek information6 To bank/treasury for making payment - Challan (applicable only for payment)........7 To fulll requirement of physical presence8 Others (Specify) IV V

Time

43D.

Please see 8 D if the number of trips is more than one, then ask: Why did you have to make more that one trip? It was required as per CTD procedure...........1 To follow up, as there was delay on the part of CTD to provide service..2 Could not avail service in previous visit (s) as there was a long queue..3 Concerned functionary was not available.4 Counter was not operational.....5 Documents/application submitted by me were incomplete......6 Others (Specify) Do you think you had to wait excessively for availing service in any of the trips? Yes 1 No 2 13D

44D.

__________ 32

Ledgers, CDs, printing paper, printing ink, carbon paper etc.

501

Impact Assessment of Commercial Taxes Computerization 2010-Tamil Nadu

45D.

46D. 47D.

48D. 49D. 50D.

51D. 52D. 53D.

54D. 55D.

Please specify the reasons for excessive wait Long queue................1 Ofcials of CTD are inefcient (slow in processing)....2 Processes are too complex & takes lot of time to complete......3 Too many applicants at ofce....4 Badly managed queue....5 Some windows/counters were not operational..6 Power breakdown..7 Computer/network connectivity failure.8 Others (Specify) Please specify the travel cost incurred in making a round trip to CTD Ofce (INR) Please specify the travel cost incurred in making a round trip to Bank/ Treasury (INR) (APPLICABLE ONLY FOR PAYMENT) Total travel cost incurred in availing service (number of trips X travel cost per trip) INR Please specify the travel time spent in making a round trip to CTD Ofce (Min.) Please specify the travel time spent in making a round trip to Bank/Treasury (Min.) (APPLICABLE ONLY FOR PAYMENT) Total travel time spent in availing service (number of trips X travel time per trip) Min. How many times did you log-in to avail online service? Please see the previous question if the number is more than one, then ask: Why did you have to log-in more than once? Service was not available as server was slow1 Portal was undergoing maintenance..2 Templates had changed, therefore it had to be downloaded rst...3 Others (Specify) What was the total time taken to complete transaction Online - it does not include time taken for data entry? (Min) Do you think that the time taken to complete online transaction was excessive? Yes 1; No 2 24 D Why do you think are the reasons for excessive time in online transactions? Server is slow.1 Processes are complex and time consuming..2 Errors occur while uploading template......3 Others (Specify)

56D.

57D.

Please calculate the amount spent as salary/wages on total time spent in availing service: traveling time + waiting time + time for transaction (man-hours spent X wage per man-hour) {INR} THIS DOES NOT INCLUDE TIME TAKEN FOR FILLING FORMS, PREPARATION OF SUPPORTING DOCUMENTS AND DATA ENTRY Service Charge paid to department for which you got a receipt? (INR) What was the total payment33 made by you for availing the service? (INR) What was the total elapsed time in availing service - how long did it take for the task to be completed, right from the date of applying to actually receiving the service applied for? (this does not include time taken for lling forms, preparation of supporting documents and data entry)? (Hours) Did you pay a bribe directly to Ofcials? Yes-1; No-2 Part E

58D. 59D. 60D.

61D.

502

Impact Assessment of Commercial Taxes Computerization 2010-Tamil Nadu

62D.

For what purpose did you pay the bribe indicated in the previous question? (Multiple rsp.) To avoid audit assessment by CT Department........1 To inuence functionaries to manipulate records in your favor..2 To expedite the proces.............3 Others (Specify) K. OVERALL ASSESSMENT

On a 5 point scale (Dissatised-1; Somewhat dissatised-2; Neutral-3; Somewhat satised-4; Very satised-5) please rate the following attributes: Mode of Service (Online O, Manual M) 1E. 3E. CTD 5E. 7E. 9E. dures 11E. Transparency39 in CTD 13E. Predictability of outcome Ability to inuence policies, rules and procedures 15E. through feedback 17E. Courtesy and helpfulness of Ofcials 19E. Queuing system at CTD Ofce 21E. Adherence to Citizen Charter41 23E. Dependence on CTD Ofcials Among the above given factors please list the three factors that you consider the most important 24E. RECORD THE S.NO. OF THE FACTOR 18E. 20E. sibility and ambience) 22E. Durability and legibility of certicates/receipts Convenience of working hours Convenience of location of center/ofce (acces16E. Level of corruption 12E. 14E. Knowledge of Ofcials Complaint handling mechanism40& problem resolution Effort in preparation of documents36 Overall quality of service38 Clarity and simplicity of processes and proce10E. Accountability of Ofcials 6E. 8E. Overall quality of governance37 Accuracy of transactions Cost of availing service34 Overall experience of availing service from 4E. Condentiality and security of data O M 2E. Mode of Service (Online O, Manual M) Time and effort in availing service35 O M

__________ 33 34

Includes a) amount paid to department for which receipt was given, and b) amount paid as bribe to department staff/functionaries Much increased-1; Somewhat increased-2; No change-3; Somewhat decreased-4; Much decreased-5 35 Much increased-1; Somewhat increased-2; No change-3; Somewhat decreased-4; Much decreased-5 36 Much increased-1; Somewhat increased-2; No change-3; Somewhat decreased-4; Much decreased-5 37 Governance is understood as transparency, accountability and corruption-free working 38 Quality of service is understood as fairness, speed of processing, accuracy of transactions, legibility and durability of certicates and printouts, convenience of obtaining service 39 Understanding and awareness of the basis on which decisions affecting you/other users are taken by ofcials 40 Including service provided by Call centre/Helpline 41 Adherence of the time frame for service delivery (elapsed time) to that specied in citizens charter

503

Impact Assessment of Commercial Taxes Computerization 2010-Tamil Nadu

L. 1F.

SUGGESTIONS42

Please give your suggestions in improving online services: (Multiple Responses) Eliminate practice of submission of hard copy to CTD.....1 Server speed should be increased...............2 Tax Consultants should be allowed to make E-payment on behalf of their clients through Consultants Internet Banking A/C.............................................................................................................................3 Maintenance of website should not be done during Ofce Hours of Traders/Tax Consultants.....4 CTD ofcials should be given adequate training, so that they can handle queries on online services efciently....5 Involve more Banks in E-payment.....6 Provide templates(w.r.t. returns) that can perform data verication ofine........7 Changes in processes/templates should be immediately communicated to dealers....8 Mistakes in database maintained by CTD w.r.t addresses of dealers should be rectied.....9

Others (Specify)

2F.

Please give your suggestions to increase use of online services: (Multiple Responses) Awareness campaigns on online services for dealers..1 Establishment of Common Service Centres to facilitate E-services to all dealers.....2 Online processes should be made much more user friendly and simple.....3

Others (Specify)

ADDITIONAL INFORMATION: PLEASE ASK THE RESPONDENT IF HE/SHE WOULD LIKE TO MAKE ADDITIONAL COMMENTS. RECORD VERBATIM.

__________ 42

This part is for all users - manual and online

504

Impact Assessment of Commercial Taxes Computerization 2010-Tamil Nadu

Annexure D

Tamil Nadu: Dealers Using Mandatory Online Services

SECTION A: Identication Details


Table 1: Division and circle wise frequency Division Annasalai III Chepauk Mylapore Royalpetah I Mannady East Tondiarpet Total Vellore North Arakonam Thiruvannamalai I Vandavasi Cuddalore Virudhachalam Villupuram I Kallakuruchi Total Laxmi Nagar Palladam Trichy Road Singanallore Pollachi Rural Udumalpet North Uthagmandalam North Kothagiri Total Ambasamudram Sengottai Srivilliputtur Rajyapalam Ettaipuram Kovilpatti Thakallai Kulithurai Total Circle 24 24 26 26 24 23 147 9 9 9 9 9 9 9 9 72 27 28 27 28 30 28 28 28 224 20 20 20 20 20 20 19 20 160

Chennai East

Vellore

Ciombatore

Tirunelveli

505

Impact Assessment of Commercial Taxes Computerization 2010-Tamil Nadu

Table 2: Location and group wise frequency Location Rural Urban Total Frequency 38 565 603 Percent 6.3 93.7 100.0

SECTION B: Dealer Prole


Table 3: Constitution of enterprise Constitution of enterprise Proprietor Partnership Private Limited Company Public Limited Company Co-Op society Total Frequency 439 106 47 8 3 603 Table 4: Type of business Type of business Manufacture Wholesale Retail Export Work contract Leasing Hotels Total Frequency 79 151 342 3 20 1 7 603 Table 5: VAT registration Registered for VAT? Yes Frequency 603 Table 6: CST registration Registered for CST? Yes No Total Frequency 117 486 603 Percent 19.4 80.6 100.0 Percent 100.0 Percent 13.1 25.0 56.7 .5 3.3 .2 1.2 100.0 Percent 72.8 17.6 7.8 1.3 .5 100.0

506

Impact Assessment of Commercial Taxes Computerization 2010-Tamil Nadu

Table 7: Mode of maintenance of books of accounts Mode in which books of Accounts are maintained Manual Computerized Total Frequency 38 565 603 Percent 6.3 93.7 100.0

Table 8: Number of staff involved in activities w.r.t Commercial Taxes Number of staff in the organization involved in activities related to Commercial Taxes 1 2 3 5 >5 Total Frequency 469 119 10 3 2 603 Percent 77.8 19.7 1.7 .5 .4 100.0

SECTION C: Awareness and Usage of Online Services


Table 9: First source of awareness First source of awareness about online services Newspaper Television Other Dealers CTPs CTD ofcials Total Frequency 113 41 37 140 272 603 Percent 18.7 6.8 6.1 23.2 45.1 100.0

Table 10: Awareness on online services Online services of CTD Application for Registration Application for issue of forms Application for refund Filing Returns Payment of Taxes Information Dissemination Total Responses N Percent 314 18.2% 129 7.5% 51 3.0% 603 34.9% 179 10.4% 450 26.1% 1726 100.0% Percent of Cases 52.1% 21.4% 8.5% 100.0% 29.7% 74.6%

507

Impact Assessment of Commercial Taxes Computerization 2010-Tamil Nadu

Table 11: Reasons for using online services Reasons for using online services Online process is faster Online process is more secure Fewer errors in online process Fewer visits to commercial taxes department Online process is more transparent It is mandatory Total N 488 161 86 154 266 395 1550 Responses Percent 31.5% 10.4% 5.5% 9.9% 17.2% 25.5% 100.0% Percent of Cases 80.9% 26.7% 14.3% 25.5% 44.1% 65.5%

SECTION D: Time and Effort and Costs of Availing Service


Table 12: Services Availed in Last 90 Days and Mode of service Services Availed in Last 90 Days Filing of returns Frequency 603 Percent 100.0

Table 13: Time and cost of Filing of Filing Returns Filing Returns Time and Cost of Preparation of Documents for Filing of Returns Man-hours spent in completing various forms and preparing supporting documents -1.43905 N S.E. Mode Computerized Manual Change (C-M) Sig.

2.418 ** 603 0.05045 2

3.8571

603 0.07673 3

Comment: Total man-hours spent for preparation of documents (manually) is signicantly lesser in online mode. Salary/wages for preparation of documents (INR) 83.59 129.38 -45.788 ** N 603 603 S.E. Mode man-hours spent for preparing documents. Cost of stationery photocopies and/or internet charges for preparation of documents (INR) N S.E. Mode Cost of Statutory Forms and other Forms including courier charges (INR) N 22.098 50 33.141 125

Comment: Salary/wages for preparation of documents has reduced signicantly this is because of the reduction in

93.63 603 4.472 50 24.63 603

106.48 603 5.686 50 27.4 603

-12.856

**

-2.774

**

508

Impact Assessment of Commercial Taxes Computerization 2010-Tamil Nadu

Filing Returns S.E. Mode Service charge paid to Tax Consultant for preparation of documents(INR) N S.E. Mode Total cost of preparation of documents (INR) N S.E. Mode

Computerized 1.996 0 408.33 413 15.247 500 480.13 603 25.707 135

Manual 2.045 0 411.77 413 13.339 500 547.18 603 36.009 173

Change (C-M)

Sig.

-3.438

NS

-67.048

**

Comment: Total cost of preparation of documents has reduced signicantly as a result of shifting to online mode. Time and Cost of Availing Services From Commercial Taxes Department Number of trips N S.E. Mode Comment: There is no difference between the two modes as far as number of trips is concerned. Waiting time (Minutes) N S.E. Mode are not scrutinized at the counter. Travel cost (INR) N S.E. Mode Travel time (Minutes) N S.E. Mode Number of times user had to log-in to avail online service N S.E. Mode Total time taken to enter data and complete transaction online (Minutes) 39.92 603 0.806 30 66.89 603 1.641 120 -26.964 ** 1 603 0.002 1 1 603 0.002 1 -.002 NS

Comment: Waiting time has reduced signicantly - this is because hard copies of returns submitted by online users 30.04 603 0.663 20 46.14 603 1.005 30 1.05 603 .009 1 32.83 NA 30.36 603 0.674 20 47.24 603 1.018 30 NA -1.108 ** -.318 **

509

Impact Assessment of Commercial Taxes Computerization 2010-Tamil Nadu

Filing Returns N S.E. Mode Amount spent as salary/wages on total time spent in availing service (INR) N S.E. Mode

Computerized 603 .839 30 49.71 603 1.662 50

Manual

Change (C-M)

Sig.

48.11 603 1.584 31

1.604

Comment: Amount spent as salary/wages on total time spent in availing service has increased slightly. This is because online users have to spend time on online transaction and also submit hard copies of returns manually to CTD. Service Charge paid to department (INR) .00 .00 N S.E. Mode Service charge paid to Tax Consultant for facilitating service from CTD Ofce (INR) N S.E. Mode Amount paid as bribe (INR) N S.E. Mode Total payment made (INR) N S.E. Mode Total elapsed time in availing service (Hours) -1.03068 N S.E. Mode ofce. 603 0 0 17.19 603 5.988 0 .00 603 0 0 17.19 603 5.988 0 1.8584 ** 603 0.04055 2.00 603 0 0 17.45 603 6.026 0 .00 603 0 0 17.45 603 6.026 0 2.8891 603 0.05906 3.00 -.267 NS -.267 NS

Comment: Total elapsed time has reduced signicantly. This is mainly because of reduction in waiting time at CTD

510

Impact Assessment of Commercial Taxes Computerization 2010-Tamil Nadu

OTHER TABLES: Time and Cost of Filing Returns (Online)


Table 14: Dependence on CTP Processes related to the service outsourced No, it was done completely in house Yes, it was partially done by CTP Total Frequency 181 422 603 Percent 30.0 70.0 100.0

Table 15: Reasons for depending on CTPs Reasons for depending on CTPs Due to lack of sufcient knowledge on processes To ensure accuracy of data given to Department Want to avoid interface with Dep. ofcials Do not want to spent time on this Total Responses N Percent 357 64.1% 116 20.8% 10 1.8% 74 13.3% 557 100.0% Percent of Cases 84.6% 27.5% 2.4% 17.5%

Table 16: Number of trips Number of trips need to make to CTD 1 2 Total Frequency 602 1 603 Percent 99.8 .2 100.0

Table 17: Reasons for multiple trips Reasons to make more that one trip Documents/application submitted by me were incomplete Total Frequency 1 1 Percent 100.0 100.0

Table 18: Waiting time for availing service Had to wait excessively for availing service in any of the trips Yes No Total Frequency 2 601 603 Percent .3 99.7 100.0

511

Impact Assessment of Commercial Taxes Computerization 2010-Tamil Nadu

Table 19: Excessive waiting time for availing service Reasons for excessive wait Long queue Ofcials of CTD are inefcient (slow in processing) Too many Applicants at ofce Badly managed queue Total N 1 1 1 1 4 Responses Percent 25.0% 25.0% 25.0% 25.0% 100.0% Percent of Cases 50.0% 50.0% 50.0% 50.0%

Table 20: Number of times user had to log-in for availing service Number of times log-in to avail online service 1 2 3 Total Frequency 572 30 1 603 Percent 94.9 5.0 .2 100.0

Table 21: Number of times user had to log-in for availing service Reasons to log-in more than once Service was not available as server was slow Portal was undergoing maintenance Total Frequency 25 6 31 Valid Percent 80.6 19.4 100.0

Table 22: Time taken to complete online transaction Time taken to complete online transaction was excessive Yes No Total Frequency 13 590 603 Percent 2.2 97.8 100.0

Table 23: Time taken to complete online transaction Reasons for excessive time in online transactions Server is slow Processes are complex and time consuming Total Frequency 11 2 13 Valid Percent 84.6 15.4 100.0

Table 24: Bribe paid Paid a bribe directly to Ofcials Yes No Total Frequency 2 601 603 Percent .3 99.7 100.0

512

Impact Assessment of Commercial Taxes Computerization 2010-Tamil Nadu

Table 25: Reasons for bribe Reasons for paying bribes N 2 1 3 Responses Percent 66.7% 33.3% 100.0% Percent of Cases

To avoid audit assessment by CT Department To inuence functionaries to manipulate records in our favor Total

100.0% 50.0% 150.0%

OTHER TABLES: Time and Cost of Filing Returns (Manual)


Table 26: Dependence on CTPs Processes related to the service outsourced No, it was cone completely in house Yes, it was partially done by CTP Total Table 27: Reasons for dependence on CTPs Reasons for depending on CTPs Due to lack of sufcient knowledge on processes To ensure accuracy of data given to Department Want to avoid interface with Dep. ofcials Do not want to spent time on this Total N 215 137 25 169 546 Responses Percent 39.4% 25.1% 4.6% 31.0% 100.0% Percent of Cases 52.1% 33.2% 6.1% 40.9% Frequency Percent 31.5 68.5 100.0

190
413 603

Table 28: Number of trips Number of trips need to CTD 1 2 Total Table 29: Reasons for multiple trips Reasons to make more that one trip It was required - as per CTD procedure Documents/application submitted by me were incomplete Total Table 30: Wating time for availing service Had to wait excessively for availing service Yes No Total Frequency 7 596 603 Percent 1.2 98.8 100.0 Frequency 1 1 2 Valid Percent 50.0 50.0 100.0 Frequency 601 2 603 Percent 99.7 .3 100.0

513

Impact Assessment of Commercial Taxes Computerization 2010-Tamil Nadu

Table 31: Excessive waiting time for availing service Reasons for excessive wait Long queue Ofcials of CTD are inefcient (slow in processing) Too many Applicants at ofce Badly managed queue Some windows/counters were not operational Total N 1 1 5 2 1 10 Table 32: Bribe paid Paid a bribe directly to Ofcials Yes No Total Table 33: Purpose of bribe Reasons to pay the bribe To avoid audit assessment by CT Department Frequency 1 Valid Percent 100.0 Frequency 1 602 603 Percent .2 99.8 100.0 Responses Percent 10.0% 10.0% 50.0% 20.0% 10.0% 100.0% Percent of Cases 14.3% 14.3% 71.4% 28.6% 14.3%

Table 34: Time and cost of Filing of Tax Payment (N=63) Tax Payment Change (C-M) Time and Cost of Availing Services From Commercial Taxes Department .00 1.00 -1 63 63 .000 .000 1 Computerized Manual Sig.

Number of trips N S.E. Mode

**

Comment: Online users did not have to make trips to banks/treasuries as payment was made online. Waiting time (Minutes) NA 28.25 N S.E. Mode Travel cost (INR) N S.E. Mode Travel time (Minutes) N S.E. Mode NA NA 63 1.597 30 32.30 63 2.076 20 50.87 63 3.770 30

514

Impact Assessment of Commercial Taxes Computerization 2010-Tamil Nadu

Tax Payment Number of times user had to log-in to avail online service N S.E. Mode Total time taken to complete transaction Online (Minutes) N S.E. Mode Amount spent as salary/wages on total time spent in availing service (INR) N S.E. Mode

Computerized 1.00 63 .000 1 28.89 63 1.653 30 12.76 63 1.513 8

Manual NA

Change (C-M)

Sig.

NA

32.54 63 2.754 22

-19.778

**

Comment: Amount spent as salary/wages has reduced signicantly because online mode has eliminated trips to banks/ treasuries. Service Charge paid to department (INR) N S.E. Mode Service charge paid to Tax Consultant for facilitating service from CTD Ofce (INR) N S.E. Mode Amount paid as bribe (INR) N S.E. Mode Total payment made (INR) N S.E. Mode Total elapsed time in availing service (Hours) N S.E. Mode to make payments. .00 63 .000 0 .00 63 .000 0 .00 63 .000 0 .00 63 .000 0 .4735 63 .02814 .33 .00 63 .000 0 .00 63 .000 0 .00 63 .000 0 .00 63 .000 0 1.3237 63 .09052 1.00 -.85016 **

Comment: Total elapsed time has reduced signicantly because in the online mode user need not visit bank/treasury

515

Impact Assessment of Commercial Taxes Computerization 2010-Tamil Nadu

OTHER TABLES: Time and Cost of Tax Payment (Online)


Table 35: Dependence on CTPs Processes related to the service outsourced? No, it was cone completely in house Frequency 63 Percent 100.0

Table 36: Number of trips Number of trips need to make to CTD 0 Frequency 63 Percent 100.0

Table 37: Time taken to complete online transaction Time taken to complete online transaction was excessive? Yes No Total Frequency 3 60 63 Percent 4.8 95.2 100.0

Table 38: Time taken to complete online transaction Reasons for excessive time in online transactions Server is slow Total Frequency 3 3 Percent 100.0 100.0

Table 39: Bribe paid Paid a bribe directly to Ofcials No Frequency 63 Percent 100.0

OTHER TABLES: Time and Cost of Tax Payment (Manual)


Table 40: Dependence on CTPs Processes related to the service outsourced No, it was cone completely in house Frequency 63 Percent 100.0

Table 41: Number of trips Number of trips need to make to CTD 1 Frequency 63 Percent 100.0

516

Impact Assessment of Commercial Taxes Computerization 2010-Tamil Nadu

Table 42: Waiting time Had to wait excessively for a availing service Yes No Total Table 43: Waiting time Reasons for excessive wait Long queue Total Table 44: Bribe paid Paid a bribe directly to Ofcials No Frequency 63 Percent 100.0 Frequency 1 3 Percent 1.6 100.0 Frequency 1 62 63 Percent 1.6 98.4 100.0

Table 45: Time and cost of Getting Information from CTD (N=500) Getting Information Computerized Manual Change (C-M) -1 Signicance

Time and Cost of Availing Services From Commercial Taxes Department Number of trips .00 1.00 N 500 500 S.E. Mode website or through e-mails. Waiting time (Minutes) N S.E. Mode Travel cost (INR) N S.E. Mode Travel time (Minutes) N S.E. Mode Number of times user had to log-in to avail online service N S.E. Mode 1.00 500 .003 1 NA NA .000 .000 .000 1

**

Comment: In the online mode, users did not visit CTD ofce for seeking information it was obtained either from NA 32.99 500 .887 60 29.73 500 .755 20 45.03 500 1.168 30 NA

517

Impact Assessment of Commercial Taxes Computerization 2010-Tamil Nadu

Getting Information Total time taken to complete transaction Online (Minutes) N S.E. Mode Amount spent as salary/wages on total time spent in availing service (INR) N S.E. Mode

Computerized

Manual

Change (C-M)

Signicance

28.11 500 .698 30 12.27 500 .586 3

NA

32.74 500 1.250 19

-20.470

**

Comment: Amount spent as salary/wages has decreased signicantly as the need to visit CTD ofce has been eliminated. Service Charge paid to department (INR) N S.E. Mode Service charge paid to Tax Consultant for facilitating service from CTD Ofce (INR) N S.E. Mode Amount paid as bribe (INR) N S.E. Mode Total payment made (INR) N S.E. Mode Total elapsed time in availing service (Hours) N S.E. Mode ofces - without visiting CTD ofce. .16 500 .160 0 .4795 500 .01449 .50 .00 500 .000 0 .16 500 .160 0 .00 500 .000 .00 500 .000 0 .16 500 .160 0 .00 500 .000 0 .16 500 .160 0 1.3894 500 .02792 1.00 -.90982 ** 0 0 NS

Comment: Total elapsed time in availing service has reduced signicantly as users can obtain information from their

518

Impact Assessment of Commercial Taxes Computerization 2010-Tamil Nadu

OTHER TABLES: Time and Cost of Getting Information from CTD (Online)
Table 46: Dependence on CTPs Processes related to the service outsourced? No, it was done completely in house Yes, it was partially done by CTP Total Frequency 498 2 500 Percent 99.6 .4 100.0

Table 47: Reasons for dependence on CTPs Reasons for depending on CTPs Due to lack of sufcient knowledge on processes Do not want to spent time on this Total N 2 2 4 Responses Percent 50.0% 50.0% 100.0% Percent of Cases 100.0% 100.0%

Table 48: Number of trips Number of trips need to make to CTD 0 Frequency 500 Percent 100.0

Table 49: Number of times user had to log-in for availing service Number of times log-in to avail online service 1 2 Total Frequency 498 2 500 Percent 99.6 .4 100.0

Table 50: Number of times user had to log-in for availing service Reasons to log-in more than once Service was not available as server was slow Total Frequency 2 2 Valid Percent 100.0 100.0

Table 51: Time taken to complete online transaction Time taken to complete online transaction was excessive Yes No Total Frequency 2 498 500 Percent .4 99.6 100.0

Table 52: Time taken to complete online transaction Reasons for excessive time in online transactions Server is slow Processes are complex and time consuming Total Frequency 1 1 2 Valid Percent 50.0 50.0 100.0

519

Impact Assessment of Commercial Taxes Computerization 2010-Tamil Nadu

Table 53: Bribe paid Paid a bribe directly to Ofcials? No Frequency 500 Percent 100.0

OTHER TABLES: Time and Cost of Getting Information from CTD (Manual)
Table 54: Dependence on CTPs Processes related to the service outsourced? No, it was cone completely in house Yes, it was partially done by CTP Total Frequency 494 6 500 Percent 98.8 1.2 100.0

Table 55: Reasons for dependence on CTP Reasons for depending on CTPs Due to lack of sufcient knowledge on processes To ensure accuracy of data given to Department Do not want to spent time on this Total N 5 2 6 13 Responses Percent 38.5% 15.4% 46.2% 100.0% Percent of Cases 83.3% 33.3% 100.0%

Table 56: Number of trips Number of trips need to make to CTD 1 Table 57: Waiting time for availing service Had to wait excessively for availing service in any of the trips No Total Frequency 500 Percent 100.0 Frequency 500 Percent 100.0

Table 58: Bribe paid Paid bribe directly to Ofcials No Frequency 500 Percent 100.0

520

Impact Assessment of Commercial Taxes Computerization 2010-Tamil Nadu

SECTION E: Overall Assessment


Table 59: Overall Assessment

Overall Assessment Cost of availing service N S.E. Time and effort in availing service N S.E. Overall experience of availing service from CTD N S.E. Condentiality and security of data N S.E. Effort in preparation of documents N S.E. Overall quality of governance N S.E. Overall quality of service N S.E. Accuracy of transactions N S.E. Clarity and simplicity of processes and procedures N S.E. Accountability of Ofcials N S.E. Transparency in CTD N S.E. Knowledge of Ofcials N S.E. Predictability of outcome

Computerized 3.84 600 0.043 3.63 602 0.04 3.72 602 0.036 3.75 602 0.038 3.6 602 0.039 3.72 603 0.04 3.62 602 0.038 3.58 601 0.039 3.72 602 0.04 3.55 602 0.037 3.71 603 0.04 3.53 601 0.038 3.53

Manual 3.28 600 0.045 3.36 602 0.042 3.24 602 0.04 3.24 602 0.043 3.13 602 0.042 3.27 603 0.044 3.34 602 0.038 3.31 601 0.042 3.24 602 0.042 3.2 602 0.044 3.17 603 0.042 3.33 601 0.041 3.19

Change (C-M) .565

Sig. **

.269

**

.483

**

.515

**

.467

**

.449

**

.282

**

.266

**

.472

**

.349

**

.541

**

.208

**

.337

**

521

Impact Assessment of Commercial Taxes Computerization 2010-Tamil Nadu

Overall Assessment N S.E Complaint handling mechanism & problem resolution N S.E Ability to inuence policies, rules and procedures N S.E. Convenience of location of center/ofce N S.E. Courtesy and helpfulness of Ofcials N S.E. Convenience of working hours N S.E. Queuing system at CTD Ofce N S.E. Level of corruption N S.E. Adherence to Citizen Charter N S.E. Dependence on CTPs N S.E. Durability and legibility of certicates/receipts N S.E.

Computerized 600 0.04 3.46 602 0.037 3.5 601 0.038 3.59 601 0.037 3.56 602 0.04 3.4 569 0.041 3.44 546 0.038 3.63 600 0.042 3.74 580 0.043 3.82 599 0.041 3.83 602 0.039

Manual 600 0.04 3.23 602 0.038 3.16 601 0.039 3.34 601 0.041 3.29 602 0.041 3.16 569 0.042 3.25 546 0.041 3.45 600 0.043 3.16 580 0.049 3.54 599 0.044 3.34 602 0.047

Change (C-M)

Sig.

.228

**

.336

**

.255

**

.272

**

.234

**

.189

**

.185

**

.576

**

.280

**

.490

**

522

Impact Assessment of Commercial Taxes Computerization 2010-Tamil Nadu

Composite Score
Table 60: Composite Score

Column No. Factor

Respondents who Average of Individual Improvement Considered Factor to Scores be Among Three Most Important a b c d e f Number Percentage Computerized Manual Difference Weighted (Column a/ (Column c Score Total of (Column e Column a) Column d) X Column b) 28 28 42 30 49 46 62 38 79 88 194 120 90 107 134 72 129 107 96 112 89 49 20 1809 1.5% 1.5% 2.3% 1.7% 2.7% 2.5% 3.4% 2.1% 4.4% 4.9% 10.7% 6.6% 5.0% 5.9% 7.4% 4.0% 7.1% 5.9% 5.3% 6.2% 4.9% 2.7% 1.1% 100.0% 3.84 3.63 3.72 3.75 3.6 3.72 3.62 3.58 3.72 3.55 3.71 3.53 3.53 3.46 3.5 3.59 3.56 3.4 3.44 3.63 3.74 3.82 3.83 3.28 3.36 3.24 3.24 3.13 3.27 3.34 3.31 3.24 3.2 3.17 3.33 3.19 3.23 3.16 3.34 3.29 3.16 3.25 3.45 3.16 3.54 3.34 .565 .269 .483 .515 .467 .449 .282 .266 .472 .349 .541 .208 .337 .228 .336 .255 .272 .234 .189 .185 .576 .280 .490 0.008475 0.004035 0.011109 0.008755 0.012609 0.011225 0.009588 0.005586 0.020768 0.017101 0.057887 0.013728 0.01685 0.013452 0.024864 0.0102 0.019312 0.013806 0.010017 0.01147 0.028224 0.00756 0.00539 0.342011

Cost of availing service Time and effort in availing service Overall experience of availing service from CTD Condentiality and security of data Effort in preparation of documents Overall quality of governance Overall quality of service Accuracy of transactions Clarity and simplicity of processes and procedures Accountability of Ofcials Transparency in CTD Knowledge of Ofcials Predictability of outcome Complaint handling mechanism & problem resolution Ability to inuence policies, rules and procedures Convenience of location of center/ ofce Courtesy and helpfulness of Ofcials Convenience of working hours Queuing system at CTD Ofce Level of corruption Adherence to Citizen Charter Dependence on CTPs Durability and legibility of certicates/receipts Total (Sum of column)

523

Impact Assessment of Commercial Taxes Computerization 2010-Tamil Nadu

SECTION F: Suggestions
Table 61: Suggestions for improving online services Suggestions for improving online services (Multiple Responses) Eliminate practice of submission of hard copy of CTD Server speed should be increased Maintenance of website should not be done during ofce hour CTD ofcials should be given adequate training, so that they can handle queries on online services efciently Provide templates (w.r.t. returns) that can perform data verication ofine Changes in processes/templates should be immediately communicated to users Mistakes in database maintained by CTD w.r.t. addresses of dealers should be rectied Total Responses N Percent 432 326 137 156 213 304 180 1748 24.7% 18.6% 7.8% 8.9% 12.2% 17.4% 10.3% 100.0% Percent of Cases 71.6% 54.1% 22.7% 25.9% 35.3% 50.4% 29.9%

Table 62: Suggestions for increase usage of online services Suggestions to increase usage of e-services (Multiple Responses) Awareness campaigns on online services for dealers Establishment of common service centres to facilitate e-services for all Online processes should be made much more user friendly and simple Total Responses N Percent 534 351 391 1276 41.8% 27.5% 30.6% 100.0% Percent of Cases 88.6% 58.2% 64.8%

524

Impact Assessment of Commercial Taxes Computerization 2010-Tamil Nadu

Annexure E

Tamil Nadu: CTPs Using Mandatory Online Services


SECTION A: Identication Details
Table 1: Division and circle wise frequency Division Annasalai III Chepauk Mylapore Royalpetah I Mannady East Tondiarpet Total Vellore North Arakonam Thiruvannamalai I Vandavasi Cuddalore Virudhachalam Villupuram I Kallakuruchi Total Laxmi Nagar Palladam Trichy Road Singanallore Pollachi Rural Udumalpet North Uthagmandalam North Kothagiri Total Ambasamudram Sengottai Srivilliputtur Rajyapalam Ettaipuram Kovilpatti Thakallai Kulithurai Total Circle 8 8 8 8 8 8 48 4 2 3 3 3 3 3 3 24 8 12 11 9 10 8 10 10 78 6 6 6 6 6 6 6 6 48

Chennai East

Vellore

Ciombatore

Tirunelveli

525

Impact Assessment of Commercial Taxes Computerization 2010-Tamil Nadu

Table 2: Location and group wise frequency Location Rural Urban Total Frequency 3 195 198 Percent 1.5 98.5 100.0

SECTION B: CTP Prole


Table 3: Education of CTP Educational qualication of Tax Consultant CA LLB B Com Total Frequency 91 14 93 198 Percent 46.0 7.1 47.0 100.0

Table 4: Years of experience of CTP Years of Experience as Tax Consultant 1-5 Years 6-10 Years 11-15 Years 16-20 Years >20 Years Total Frequency 21 62 66 33 16 198 Percent 10.6 31.3 33.3 16.7 8.1 100.0

Table 5: Number of staff involved in activities w.r.t Commercial Taxes Number of staff in the organization involved in activities related to Commercial Taxes 1 2 3 4 5 >5 Total Frequency 92 47 28 17 10 4 198 Percent 46.5 23.7 14.1 8.6 5.1 2.0 100.0

Table 6: Computer literacy of CTP Tax Consultant is computer literate Yes Frequency 198 Percent 100.0

526

Impact Assessment of Commercial Taxes Computerization 2010-Tamil Nadu

Table 7: Experience in using online services Tax Consultant used any online e-Gov. service Yes Frequency 198 Percent 100.0

SECTION C: Awareness and Usage of Online Services


Table 8: First source of awareness Frst source of awareness about online services Newspaper Television Dealers Other CTPs Commercial tax department ofcial Total Frequency 33 1 1 29 134 198 Percent 16.7 .5 .5 14.6 67.7 100.0

Table 9: Awareness on online services Online services of CTD Application for Registration Application for issue of forms Application for refund Filing Returns Payment of Taxes Information Dissemination Total N 179 88 56 198 154 145 820 Responses Percent 21.8% 10.7% 6.8% 24.1% 18.8% 17.7% 100.0% Percent of Cases 90.4% 44.4% 28.3% 100.0% 77.8% 73.2%

Table 10: Reasons for using online services Reasons for using e services Online process is faster Online process is more secure Fewer errors in online process Fewer visits to commercial taxes department Online process is more transparent It is mandatory Total N 182 70 44 81 117 146 640 Responses Percent 28.4% 10.9% 6.9% 12.7% 18.3% 22.8% 100.0% Percent of Cases 91.9% 35.4% 22.2% 40.9% 59.1% 73.7%

527

Impact Assessment of Commercial Taxes Computerization 2010-Tamil Nadu

SECTION D: Time and Effort and Costs of Availing Service


Table 11: Time and cost of Filing of Returns (N=198) Filing Returns Computerized Manual Change (C-M) Time and Cost of Preparation of Documents for Filing of Returns Man-hours spent in completing various forms and prepar2.1384 3.101 -.96263 ing supporting documents N 198 198 S.E. Mode 0.136 2.00 0.15294 2.00 Sig.

**

Comment: Total man-hours spent for preparation of documents (manually) is signicantly lesser in online mode. Salary/wages for preparation of documents (INR) 62.03 91.59 -29.556 ** N 198 198 S.E. Mode 3.639 42 6.431 83

Comment: Salary/wages for preparation of documents has reduced signicantly. Cost of stationery photocopies and/or internet charges for 111.53 128.83 preparation of documents (INR) N 198 198 S.E. Mode Cost of Statutory Forms and other Forms including courier charges (INR) N S.E. Mode Total cost of preparation of documents (INR) N S.E. Mode 7.865 50 71.71 198 8.056 10 245.29 198 10.563 72 9.29 50 81.72 198 7.747 300 301.61 198 13.461 400

-17.308

**

-10.005

**

-56.318

**

Comment: Total cost of preparation of documents has reduced signicantly as a result of shifting to online mode. Time and Cost of Availing Services From Commercial Taxes Department Number of trips 1.01 1.04 -.030 ** N 198 198 S.E. Mode 0.007 1 0.014 1 50.7 198 1.932 30 -18.828 **

Comment: Users had to make at least one trip in both the modes. Waiting time (Minutes) 31.87 N 198 S.E. Mode line users are not scrutinized at the counter. 1.013 30

Comment: Waiting time seems to have reduced signicantly - this is because hard copies of returns submitted by on-

528

Impact Assessment of Commercial Taxes Computerization 2010-Tamil Nadu

Filing Returns Travel cost (INR) N S.E. Mode Travel time (Minutes) N S.E. Mode Number of times user had to log-in to avail online service N S.E. Mode Total time taken to enter data and complete transaction online (Minutes) N S.E. Mode Amount spent as salary/wages on total time spent in availing service (INR) N S.E. Mode

Computerized 27.25 198 0.887 20 34.82 198 1.16 30 1.18 198 .027 1 27.74 198 .972 30 48.33 198 2.641 31

Manual 28.28 198 1.145 20 36.04 198 1.358 30 NA

Change (C-M) -1.035

Sig. *

-1.212

**

NA

45.18 198 2.589 42

3.152

**

Comment: Amount spent as salary/wages on total time spent in availing service has increased slightly. This is because online users have to spend time on online transaction and also submit hard copies of returns manually to CTD. Service Charge paid to department (INR) .00 .00 N S.E. Mode Amount paid as bribe (INR) N S.E. Mode Total payment made (INR) N S.E. Mode Total elapsed time in availing service (Hours) N S.E. Mode ofce. 198 0 0 .00 198 0 0 .00 198 0 0 1.9217 198 0.05293 2.00 198 0 0 .00 198 0 0 .00 198 0 0 2.4651 198 0.06858 2.00 -.54338 **

Comment: Total elapsed time has reduced signicantly. This is mainly because of reduction in waiting time at CTD

529

Impact Assessment of Commercial Taxes Computerization 2010-Tamil Nadu

OTHER TABLES: Filing of Returns (Online)


Table 12: Number of trips Number of trips need to CTD 1 2 Total Table 13: Reasons for multiple trips Reasons to make more that one trip To follow up, as there was delay on the part of CTD to provide service Frequency 2 Percent 100.0 Frequency 196 2 198 Percent 99.0 1.0 100.0

Table 14: Waiting time for availing service Had to wait excessively for availing service in any of the trips Yes No Total Frequency 1 197 198 Percent .5 99.5 100.0

Table 15: Excessive waiting time for availing service Reasons for excessive wait Too many applicants at ofce Frequency 1 Percent 100.0

Table 16: Number of times user had to log-in for availing service Number of times log-in to avail online service 1 2 Total Frequency 162 36 198 Percent 81.8 18.2 100.0

Table 17: Number of times user had to log-in for availing service Reasons to log-in more than once Service was not available as server was slow Portal was undergoing maintenance Total Frequency 34 2 36 Valid Percent 94.4 5.6 100.0

Table 18: Time taken to complete online transaction Time taken to complete online transaction was excessive Yes No Total Frequency 17 181 198 Percent 8.6 91.4 100.0

530

Impact Assessment of Commercial Taxes Computerization 2010-Tamil Nadu

Table 19: Time taken to complete online transaction Reasons for excessive time in online transactions Server is slow Processes are complex and time consuming Errors occur while uploading template Total Table 20: Bribe paid Paid a bribe directly to Ofcials No Frequency 198 Percent 100.0 Frequency 12 2 3 17 Valid Percent 70.6 11.8 17.6 100.0

Other Tables: Filing of Returns (Manual)


Table 21: Number of trips Number of trips need to make to CTD 1 2 Total Frequency 190 8 198 Percent 96.0 4.0 100.0

Table 22: Reasons for multiple trips Reasons to make more than one trip It was required - as per CTD procedure To follow up, as there was delay on the part of CTD to provide service Total N 4 5 9 Table 23: Waiting time for availing service Had to wait excessively for availing service Yes No Total Frequency 7 191 198 Percent 3.5 96.5 100.0 Responses Percent 44.4% 55.6% 100.0% Percent of Cases 50.0% 62.5%

Table 24: Excessive waiting time for availing service Reasons for excessive wait Long queue Too many applicants at ofce Total Frequency 1 6 7 Valid Percent 14.3 85.7 100.0

531

Impact Assessment of Commercial Taxes Computerization 2010-Tamil Nadu

Table 25: Bribe paid Paid a bribe directly to Ofcials No Frequency 198 Percent 100.0

Table 26: Time and cost of Getting Information from CTD (N=151) Getting Information Computerized Manual Change (C-M) Time and Cost of Availing Services From Commercial Taxes Department Number of trips .00 1.00 -1 N 151 151 S.E. Mode website or through e-mails. Waiting time (Minutes) N S.E. Mode Travel cost (INR) N S.E. Mode Travel time (Minutes) N S.E. Mode Number of times user had to log-in to avail online service N S.E. Mode Total time taken to complete transaction Online (Minutes) N S.E. Mode Amount spent as salary/wages on total time spent in availing service (INR) N S.E. Mode nated. 1.00 151 .000 1 24.75 151 1.325 20 12.55 151 1.157 3 33.49 151 2.609 21 -20.940 ** NA NA NA .000 .000 1 Signicance **

Comment: In the online mode, users did not visit CTD ofce for seeking information it was obtained either from NA 31.72 151 1.420 30 27.15 151 1.031 20 34.44 151 1.142 30 NA

Comment: Amount spent as salary/wages has decreased signicantly as the need to visit CTD ofce has been elimi-

532

Impact Assessment of Commercial Taxes Computerization 2010-Tamil Nadu

Getting Information Service Charge paid to department (INR) N S.E. Mode Amount paid as bribe (INR) N S.E. Mode Total payment made (INR) N S.E. Mode Total elapsed time in availing service (Hours) N S.E. Mode ofces - without visiting CTD ofce.

Computerized 00 151 .000 0 00 151 .000 0 .00 151 .000 0 .4352 151 .02845 .50

Manual .00 151 .000 0 .00 151 .000 0 .00 151 .000 0 1.5783 151 .10616 1.00

Change (C-M)

Signicance

-1.14311

**

Comment: Total elapsed time in availing service has reduced signicantly as users can obtain information from their

Other Tables: Getting Information from CTD (Online)


Table 27: Number of trips Number of trips need to make to CTD 0 Frequency 151 Percent 100.0

Table 28: Number of times user had to log-in for availing service Number of times log-in to avail online service 1 Frequency 151 Percent 100.0

Table 29: Time taken to complete online transaction Time taken to complete online transaction was excessive No Frequency 151 Percent 100.0

533

Impact Assessment of Commercial Taxes Computerization 2010-Tamil Nadu

Table 30: Bribe paid Paid a bribe directly to Ofcials No Frequency 151 Percent 100.0

Other Tables: Getting Information from CTD (Manual)


Table 31: Number of trips

Number of trips need to make to Commercial Tax 1

Frequency 151

Percent 100.0

Table 32: Waiting time for availing service Had to wait excessively for availing service Yes No Total Frequency 1 150 151 Percent .7 99.3 100.0

Table 33: Excessive waiting time for availing service Reasons for excessive wait Too many applicants at ofce Frequency 1 Valid Percent 100.0

Table 34: Bribe paid Paid a bribe directly to Ofcials No Frequency 151 Valid Percent 100.0

SECTION E: Overall Assessment


Table 35: Overall Assessment Overall Assement Cost of availing service N S.E. Time and effort in availing service N S.E. Overall experience of availing service from CTD N S.E. Computerized 3.81 198 0.056 3.77 198 0.055 3.73 198 0.051 Manual 3.31 198 0.058 3.22 198 0.06 3.11 198 0.05 Change (C-M) .500 Sig. **

.551

**

.616

**

534

Impact Assessment of Commercial Taxes Computerization 2010-Tamil Nadu

Overall Assement Condentiality and security of data N S.E. Efforts in preparation of documents N S.E. Overall Quality of governance N S.E. Overall quality of service N S.E. Accuracy of transactions N S.E. Clarity and simplicity of processes and procedures N S.E. Accountability of ofcials N S.E. Transparency in CTD N S.E Knowledge of ofcials N S.E Predictability of outcome N S.E. Complaint handling mechanism & problem resolution N S.E. Ability to inuence policies, rules and procedures N S.E. Level of corruption N S.E. Courtesy and helpfulness of ofcials N S.E. Convenience of working hours N

Computerized 3.89 198 0.056 3.62 198 0.055 3.59 198 0.057 3.66 198 0.056 3.84 198 0.055 3.72 198 0.061 3.69 198 0.061 3.89 198 0.056 3.61 198 0.061 3.64 198 0.057 3.63 198 0.065 3.54 198 0.066 3.55 198 0.057 3.67 198 0.055 3.76 198

Manual 3.28 198 0.06 3.22 198 0.061 3.19 198 0.051 3.28 198 0.057 3.26 198 0.06 3.15 198 0.062 3.26 198 0.062 3.01 198 0.064 3.28 198 0.055 3.11 198 0.049 3.13 198 0.056 3.09 198 0.058 3.21 198 0.058 3.17 198 0.06 3.33 198

Change (C-M) .616

Sig. **

.399

**

.399

**

.379

**

.586

**

.571

**

.429

**

.879

**

.328

**

.530

**

.500

**

.455

**

.338

**

.495

**

.429

**

535

Impact Assessment of Commercial Taxes Computerization 2010-Tamil Nadu

Overall Assement S.E. Queuing system at CTD Ofce N S.E. Convenience of location of centre/ofce N S.E. Adherence to citizen charter N S.E. Durability and legibility of certicates/receipts N S.E. Dependence on CTD Ofcials N S.E.

Computerized 0.056 3.6 198 0.1 3.84 198 0.053 3.58 198 0.064 3.91 198 0.056 3.68 197 0.063

Manual 0.06 3.12 198 0.048 3.46 198 0.052 3.13 198 0.06 3.26 198 0.069 3.39 197 0.055

Change (C-M) .475

Sig.

**

.374

**

.444

**

.652

**

.289

**

Composite Score
Table 36: Composite Score Respondents who Considered Factor to be Among Three Most Important Column No. Factor a Number b Percentage (Column a/ Total of Column a) 2.5% 5.6% 3.0% 2.4% 2.7% 3.7% 5.2% 2.9% 4.4% Average of Individual Scores Improvement

e Difference (Column c Column d) .500 .551 .616 .616 .399 .399 .379 .586 .571

F Weighted Score (Column e X Column b) 0.0125 0.030856 0.01848 0.014784 0.010773 0.014763 0.019708 0.016994 0.025124

Computerized Manual

Cost of availing service Time and effort in availing service Overall experience of availing service from CTD Condentiality and security of data Efforts in preparation of documents Overall Quality of governance Overall quality of service Accuracy of transactions Clarity and simplicity of processes and procedures

15 33 18 14 16 22 31 17 26

3.81 3.77 3.73 3.89 3.62 3.59 3.66 3.84 3.72

3.31 3.22 3.11 3.28 3.22 3.19 3.28 3.26 3.15

536

Impact Assessment of Commercial Taxes Computerization 2010-Tamil Nadu

Column No. Factor

Respondents who Considered Factor to be Among Three Most Important a b Number Percentage (Column a/ Total of Column a) 19 46 39 28 37 41 23 35 28 47 11 29 10 9 594 3.2% 7.7% 6.6% 4.7% 6.2% 6.9% 3.9% 5.9% 4.7% 7.9% 1.9% 4.9% 1.7% 1.5% 100.0%

Average of Individual Scores

Improvement

c d Computerized Manual

e Difference (Column c Column d) .429 .879 .328 .530 .500 .455 .338 .495 .429 .475 .374 .444 .652 .289

F Weighted Score (Column e X Column b) 0.013728 0.067683 0.021648 0.02491 0.031 0.031395 0.013182 0.029205 0.020163 0.037525 0.007106 0.021756 0.011084 0.004335 0.498702

Accountability of ofcials Transparency in CTD Knowledge of ofcials Predictability of outcome Complaint handling mechanism & problem resolution Ability to inuence policies, rules and procedures Level of corruption Courtesy and helpfulness of ofcials Convenience of working hours Queuing system at CTD Ofce Convenience of location of centre/ofce Adherence to citizen charter Durability and legibility of certicates/receipts Dependence on CTD Ofcials Total (Sum of column)

3.69 3.89 3.61 3.64 3.63 3.54 3.55 3.67 3.76 3.6 3.84 3.58 3.91 3.68

3.26 3.01 3.28 3.11 3.13 3.09 3.21 3.17 3.33 3.12 3.46 3.13 3.26 3.39

537

Impact Assessment of Commercial Taxes Computerization 2010-Tamil Nadu

SECTION F: Suggestion
Table 37: Suggestions for improving online services Suggestions for improving online services (Multiple Responses) N Eliminate practice of submission of hard copy of CTD Server speed should be increased Tax consultants should be allowed to make E-payment on behalf of clients Maintenance of website should not be done during ofce hour CTD ofcials should be given adequate training, so that the Involve more banks in e-payment Provide templates (w.r.t. returns) that can perform data verication ofine Changes in processes/templates should be immediately communicated to users Mistakes in database maintained by CTD w.r.t. addresses of dealers should be rectied Total 145 91 73 80 75 95 103 56 72 790 Responses Percent 18.4% 11.5% 9.2% 10.1% 9.5% 12.0% 13.0% 7.1% 9.1% 100.0% Percent of Cases N 73.2% 46.0% 36.9% 40.4% 37.9% 48.0% 52.0% 28.3% 36.4%

Table 38: Suggestions for increase usage of online services Suggestions to increase usage of e-services (Multiple Responses) N Awareness campaigns on online services for dealers Establishment of common service centres to facilitate e-services to all Online processes should be made much more user friendly and simple Total 154 93 153 400 Responses Percent 38.5% 23.3% 38.3% 100.0% Percent of Cases N 77.8% 47.0% 77.3%

538