Overview of E-trip and E-ICC under Punjab VAT Act, 2005

1 comments Monday, September 2, 2013
What is E-Trip and E-ICC:  E-trip and E-ICC has come into force w.e.f 01-08-2013 in Punjab. E-trip is the reporting of intra-state and E-ICC is the reporting of inter-state transactions meant for trade under section 51 of Punjab VAT Act. 2005 on the virtual information collection centre on the official website of the Excise & Taxation Department, Punjab i.e www.pextax.com.

 E-trip and E-ICC have been implemented under Rule 64-A, 64-B and 64-C read with Rule 2(hh) of the Punjab VAT Rules, 2005. Although such E-trip and E-ICC system has been implemented w.e.f 01-08-2013 but by public notice dated 01-08-2013(Public notice of 01-08-2013 can be downloaded at the link available at the end of this article) the dealers were allowed time for upgrading their system for the purpose of e-trip till 01-09-2013 and till that time it was assured that no penalty will be levied u/s 51 for not doing E-trip or E-ICC.

 Since 01-09-2013 has arrived therefore certain following points relating to E-trip and E-ICC are discussed heerbelow for the all concernds:

 When E-Trip is required to be done: E-Trip is required to be done not in all transactions of movement of goods within State but in case of  transactions of specified goods of specified monetary limit only. 

 Since E-trip is a reporting of intra-state movement oof goods within State on the virtual information collection centre i.e a compliance u/s 51 of the Punjab VAT Act, 2005 therefore only those transactions of intra-state movement of goods within State is required to be reported under E-trip system, which are meant for business only, as section 51 has applicability only in relation to transactions which are meant for Business.

 Thus if an intra-state transaction is meant for personal use and not for business and trade then E-trip of such transaction would not be required.

 Specified Goods and monetary limits in which E-trip is required:
Sr.No.
Name of the Specified Goods
Minimum Value
1
Cotton
Rs.50,000
2
Sarson
Rs.50,000
3.
Plywood
Rs.50,000
4.
lron and Steel (excluding Scrap)
Rs.50,000
5.
Yarn
Rs.50,000
6.
Vegetable Oil (edible and non edible)
Rs.50,000


It has been clarified in Public Notice dated 01-08-2013 that “Forging and Casting” items are not included
in the item “Iron & Steel” specified under Rule 64-A and 64-B.

 After reporting the transaction under E-trip in form VAT-12-A, an electronic receipt would be generated which mandatorily needs to be carried along with the goods during their movement within State. E-Trip is required to be done before putting the goods in transit within the State.

 Any transaction covered by multiple invoices with total value of all invoices exceeding the prescribed threshold, where the consignor & the consignee are the same and the goods are transported through the same vehicle shall be considered a single transaction for the purpose of minimum sale.
Maximum transition time prescribed under Rule 64-A: Rule 64-A(3) of Punjab VAT Rules gives power to Commissioner to specify maximum transition time for delivery of specified goods from one destination to the other destination. The maximum transition time has been prescribed as below:
For distance upto 100 Kms
6 Hours
For distance upto 200 Kms
10 Hour
For distance above 200 Kms
14 Hours

It has been further clarified in Public Notice dated 01-08-2013 that in case goods are being transported through a transporter, the requirements of e-Trip/e-ICC will not be applicable when the goods are being transported from the premises of the dealer to the transporter. In this case, these requirements shall be applicable when the movement of the goods starts from the premises of the transporter.

 When E-ICC is required to be done: Reporting of inter-state transaction on the virtual information collection centre by a system of E-ICC is required to be done in two cases i.e in case of export of goods outside the state of Punjab and other is import of goods into the State of Punjab from outside by air, railway or dry port.

 E-ICC in case of export of goods outside the State:Rule 64-B deals with the procedure for furnishing information under E-ICC system relating to export of goods outside the State of Punjab by any mode of transition. An owner or person incharge of the specified goods before putting the same into transit for export out of the State, for trade or commerce by any mode of transition has to report the information relating to such export on the virtual ICC in form VAT-12.

 The specified goods for the purpose of E-ICC in case of export of goods outside the State are as follows:
Sr.No.
Name of the Specified Goods
Minimum Value
1
lron and Steel
Rs.50,000
2
Hosierv dnd readymade garments
Rs.50,000
3.
Pipes of all kinds i.e. MS Pipe, Gl Pipes, ERW Pipes, Plastic Pipes etc
Rs.50,000
4.
Rice
Rs.50,000
5.
Nut-bolt /Fastener
Rs.50,000

It has been clarified in Public Notice dated 01-08-2013 that “Forging and Casting” items are not included in the item “Iron & Steel” specified under Rule 64-A and 64-B.

 Thus E-ICC is applicable only on the goods and monetary limits of a bill specified for this purpose as  mentioned in the above table.In case of other goods or specified goods where bill value is less than the monetary limit of  Rs. 50000/- , there is no need for need for reporting the transaction on E-ICC, rather the same will be recorded at the Information Collection Centre established at the borders of Punjab as and when goods reach such ICC. 

 It has also been clarified in public notice dated 01-08-2013 that any transaction covered by multiple invoices with total value of all invoices exceeding the prescribed thresh-hold, where the consignor & the consignee are the same and the goods are transported through the same vehicle shall be considered a single transaction for the purpose of minimum sale.

 Maximum transition time for E-ICC: The maximum transition time for delivery of goods from place of departure to the nearest ICC falling enroute towards destination while exiting the State has been specified as under:
For distance upto 100 Kms
6 Hours
For distance upto 200 KMs
10 Hour
For distance above 200 Kms
14 Hours

However it should be noted that it has been clarified in public notice dated 01-08-2013 that for the goods being sent outside the State i.e. goods covered under Rule 64-B, the condition of maximum time limit to leave the State shall not apply.

 E-ICC in case of import of goods into State of Punjab: If a person imports any goods into the State of  
Punjab either by air or railways or by dry ports then as per Rule 64-C he needs mandatorily to report the said transaction on the virtual ICC in form VAT-12, before taking the delivery of such goods or before transition of such goods by road, whichever is earlier.

 That means import of all goods by railway or air or by dry port will have to be reported on E-ICC and such reporting will have to be done before taking the delivery of such goods or before transition of such goods by road, whichever is earlier.

 It should be noted that E-ICC system is applicable on the specified goods and monetary limit in case of Rule 64-B, but in case of Rule 64-C system of E-ICC is applicable on all the goods irrespective of nature of goods or the monetary limit.

 username and passwords for E-ICC and E-trip: If a person wants to start reporting on E-ICC, he will have to get username and password for the same from the local jurisdictional officer. After getting the same, one can log on to the website of the Department i.e. www.pextax.com at the links available for E-ICC.

 For E-Trip the user name is the TIN of the person and the password which is now working seems to be the old password for the efiling of returns which was used by such person before migrating its TIN on a new system namely COTIS as existing on the new website. 

 However it has been clarified by the Department on a public notice dated 01-08-2013 that Transporters will be able to submit data on behalf of the dealers on the website of the department. 
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