PwC, Microsoft develop VAT solution

NEW DELHI: PricewaterhouseCoopers India and Microsoft India have announced the launch of the first off-the-shelf Value Added Tax (VAT) solution for state tax departments in India. The solution is developed using the Microsoft .NET framework. The front end is developed using ASP.Net and the database is on MS SQL Server 2000.

The VAT It is based on the current model of the Government of India VAT and can be customized based on specific requirements of an individual state on a case-to-case basis.

The PwC VAT application will enable the state tax departments to administer registration of dealers, periodic returns from dealers, assessment, realization, reassessment, interest and penalties, recovery, appeals, identification of potential tax payers and install check gates.

It also has an assessment computation engine which provides computed assessment of tax liabilities of the dealers which can then be compared against the dealer’s actual declaration, and any discrepancies can be judged. The payment received from the dealers too can be captured in the system through necessary screens from banks.

The solution also has the provision of developing and installing a standalone system at the dealer’s end and the check gates, which will enable relevant information to be replicated/extracted, and uploaded into the main system at the government offices. Dealers can also be provided with the option of filing their returns through a remote login with adequate security features built in.

Elaborating on how the VAT application launch fits in with Microsoft’s overall strategy of working with center and state governments, Rajiv Nair, President, Microsoft India, and Senior Strategic Advisor, Microsoft Asia, said, "We are working very closely with the Center and various state governments to help address their compelling e-governance requirements, both as a technology provider as well as a consultant in drawing out a long term e-governance blue print. With the launch of the joint Microsoft-PwC VAT solution we are adding a new dimension to the relationship."

Commenting on the application, Roopen Roy, Director, PwC, said, "The solution is designed to facilitate the implementation of VAT with the state governments in India. Drawing from our knowledge pool of tax and business advisory services, which constitutes our core expertise, we realized that we were best positioned to render our professional services and domain knowledge to the state governments to implement VAT at the state level. It may be recalled that states are expected to switch over to the VAT regime with effect from April 1, 2003.