Other States - Uttar Pradesh   

TIN for U.P. traders

`Under new regime tax evasion would become difficult for traders'

LUCKNOW: The Uttar Pradesh Government will soon introduce Taxpayer's Identification Number (TIN) for traders in the State replacing registration with the Trade Tax Department.

Under Section 56 of the UP Trade Tax Act, 1948, it is mandatory for traders to obtain trade tax registration. For implementing TIN, relevant sections of the UP Trade Tax Act, 1948, would be amended and the state cabinet has approved the draft amendment bill.

Official sources here today said for preventing the trade tax evasion TIN Information Exchange System (TINXSYS) would also be introduced at the all India level. For the sake of uniformity in database TIN numbers would be issued on similar pattern by all states.

UP would be a major beneficiary of the TINXSYS as it is a net importer state and annual imports were above Rs 20,000 crores.

Several states have so far implemented TIN including those who have not accepted the VAT regime like Rajasthan, Madhya Pradesh, Jharkhand and Gujarat.

A senior official of the trade tax department said technology is fast catching in UP, and under TIN regime tax evasion would become a difficult task for the trading community.

The official said traders were indulging in tax evasion with impunity as it was physically impossible to verify a large number of forms filed by traders under Central Sales Tax Act, for inter-state trading and inter state stock transfer.

"With the implementation of TIN, all relevant information about any trading firm or traders would be available at the click of mouse,'' sources claimed. -- UNI

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