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Impact Assessment

of Commercial Taxes

Computerization2010

Assessment of Delivery of Key Services:The Citizen’s 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 TechnologyMinistry 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 first phase of assessment studies, three state-level e-Government projects

– vehicle registration, property registration and land records were selected for assessment in twelvestates 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 Offices 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 five 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 field 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 field survey of dealers and Commercial Tax Practitioners (CTP) in five 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



9

Executive Summary

Assessment of Delivery of Key Services: The Citizen’s Perspective

The report presents an overall view of the impact of varying degrees of computerization in the

service delivery of Commercial Tax departments in five 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 conductedwith 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 filing returns across all states. However, there are clear benefits 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 significantly lowered

bribery for getting statutory forms, in filing returns the impact is marginal. Overall, there is positive

impact for obtaining forms and information but hardly any gains in the key activity of filing 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 flow would have to be automated after streamlining

the processes; revision of forms and review of requirement of supporting documents.



11

Abbreviations and Acronyms

AP Andhra Pradesh

CDSC Centralized Dealer Service Centre

CG Chhattisgarh

CST Central Sales Tax

CTD Commercial Tax Department

CTO Chief Technology Officer

CTP Commercial Tax practitioners

DIT Department of Information Technology

G2B Government to Business

G2C Government to Citizen

G2G Government to Government

GJ Gujarat

IIMA Indian Institute of Management, Ahmedabad

IT Information Technology

MR Agencies Market Research Agencies

NeGP National e-Governance Plan

NIC National Informatics Centre

NMMP National Mission Mode Programme

PMU Program Management Unit

RDI Research and Development Initiative Pvt Ltd

RFP Request for Proposal

RJ Rajasthan

TINXSYS Tax Information Exchange System

TN Tamil Nadu

VAT Value Added Tax



13

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 Offices 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 Profile 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



14

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 CTP’s (%) ...........................................................................35

Table 11: Attributes Considered Important by Dealers (by % of Responses)...................................36

Table 12: Attributes Considered Important By CTP’s (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 : Profile of Dealers and CTPs ........................................................................................42

Annexure 4 : Reasons for Execessive Wait.......................................................................................44



15

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

first 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 five 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

identifies 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 thedepartment in the five states.



17


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. IIMA’s effort was directed at ensuring that a consistent

framework was used across the states; the MR agency understood the refinements 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 thereasons 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 specified 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 significance. Tables were also specified 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.



18


2.0 Status of Computerization of Commercial Tax Offices 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 withappropriate e-Governance initiatives.

Table 1: Services Targeted1

Service e-Governance Initiatives under CT-MMP

Registration of dealers Online application for registration

Online dealer verification

Online dealer ledger (?Should this be here?)

Collection of returns Online filing of returns

Collection of taxes Online payment of tax

Provision of refunds Electronic clearance 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

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 Department’s 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.

_ _________

1Adapted 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



19


Table 2: List of Services Offered by Different States and Mode of Delivery

Name of Service Andhra

Pradesh

Chhattisgarh Gujarat Rajasthan Tamil Nadu

Registration Computerized

and Manual

Manual Computerized Computerized

and Manual

Computerized

and Manual

Filing of returns Computerized

and Manual

Computerized

and Manual

Computerized

and Manual 2

Computerized

and Manual

Computerized

and Manual 3

Payment Manual Computerized

and Manual

Computerized

and Manual

Computerized

and Manual

Computerized

and manual

Communication/

InformationDissemination

Computerized Computerized Computerized

and Manual

Computerized

and Manual

Computerized

and Manual

Refund Manual Manual Computerized Computerized

and Manual

Computerized

and Manual

e-submission of

declaration form

Not Offered Not Offered Not Offered Computerized

and Manual

Not Offered

Issue of Forms4 Computerized Computerized Computerized Computerized 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 files 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

__________

2E-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.

3E-returns is mandatory for 100% Input Tax Credit dealers or dealers with annual turnover of more than one crore

4

All forms of VAT are available online – they can only be obtained online. However, in case of CST, forms are not available online



20


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 allstates are filing of returns and obtaining statutory forms.

Filing tax returns: The impact on filing returns has been assessed in all states. In all of them, the1.

impact of filing 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.

Obtaining statutory form: The impact on users obtaining forms from the CTD was analyzed for all2.

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 Service Analyzed Counterfactual

Rajasthan Filing Returns Manual and online users were interviewed

(treatment and comparison groups)

Obtaining VAT Forms Recall method

Chhattisgarh Filing Returns Manual and online users were interviewed


Tax payment Manual and online users were interviewed


Gujarat Filing Returns Manual and online users were interviewed


Obtaining Statutory Forms Recall method

Andhra Pradesh Filing Returns Manual and online users were interviewed


Obtaining Statutory Forms Manual and online users were interviewed


Tamil Nadu Filing Returns Recall method

Tax payment

Obtaining Information

__________

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



21


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 first 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 usersQuality of Service: Interaction with staff, complaint handling, privacy, accuracy measured on a 5-point scale

Satisfaction with the location of the service delivery center/office•

Convenience of working hours of the service delivery center/office•

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 confidentiality 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 specified in citizen’s charter •

Financial loss due to delay in availing the service•

Type/kind of financial loss incurred due to delay in availing the service•

Extent to which government officials 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•



22


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 define the cost (including time cost) of accessing a popular service such as filing 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 samplewas 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 Details of Users Computerized Manual Total

Andhra Pradesh Dealers 309 301 610

CTP 101 102 203

Chhattisgarh Dealers 303 302 605

CTP 111 90 201

Gujarat (Optional Online Services) Dealers 196 195 391

CTP 74 74 148

Gujarat (Mandatory Online

Services)

Dealers 192 0 192

CTP 74 0 74

Rajasthan (Optional Online

Services)

Dealers 253 250 503

CTP 76 77 153

Rajasthan (Mandatory OnlineServices)

Dealers97

0 97

CTP 52 0 52

Tamil nadu6 Dealers 603 NA 603

CTP 198 NA 198

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



23


Table 6: Sampling Units and Sample Sizes (Dealer)

State Selected Division Sample Size

Andhra Pradesh

Punjagutta 38

Secunderabad 12

Abids 11

Vijayawada-ii 17

Charminar 24

Visakhapatnam 15

Chattishgarh

Raipur 36

Bilaspur 24

Durg 34

Rajasthan

Jaipur-II 56

Kota 19Bikaner 12

Udaipur 12

Tamil Nadu

Coimbatore 38

Tirunelveli 26

Chennai East 32

Vellore 12

3.4 Profile of Respondents

Some attributes indicating the profile 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 field. 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 five 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 final document)•

Quality of service assessed along attributes such as responsiveness of staff, convenience of•

location of office and work timings, and facilities at the service center.



24


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 five 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 reflecting 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 five states in two ways:

Cost element-wise impact: An aggregate picture of overall impact for a given project covering all1.

dimensions across all states.

Service-wise impact: Variation across states of the impact on each of the above dimensions for a2.

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 filing 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 filing returns across all states. And this is true even for Gujarat where there was clear scope

for improvement.

However, there are clear benefits 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.



25


5.2 Waiting Time (In Minutes)

Figure 2 presents the average waiting time in minutes for each trip made for the service. When filing 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 filing returns.

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

Dealer

Filing Returns Tax Payment

Infromation

AP GJ(M) RJ(M) AP CG GJ(O) RJ(O) TN CG TN TN

Obtaining Forms

1.6

1.41.2

10.80.6

0.40.2

0

CTP

Filing ReturnsTax

Payment Infromation

AP GJ(M) RJ(M) AP CG GJ(O) RJ(O) CGTN TN

Obtaining Forms

1.6

1.4

1.2

1

0.8

0.6

0.4

0.2

0

_______________

7In few services since the values for the computerized mode is 0 , there is no red bar. This implies to figure (1 to 9). The colored bars in all the figures

(1 to 9) represent the values of manual and computerized system.

Figure 1: Number of Trips7

Manual Computerized



26


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)

Figure 3 presents the elapsed time between application for a service and its final 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 filing 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 filing 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

Dealer

(inminutes)

80

70

60

50

40

30

20

10

Filing Returns Tax PaymentInfromation

AP GJ(M) RJ(M) AP CG GJ(O) RJ(O) TN CG TN TN

Obtaining Forms

0

(inminutes)

Filing ReturnsTax

PaymentInfromation

AP GJ(M) RJ(M) AP CG GJ(O) RJ(O) TN CG TN

Obtaining Forms

0

80

70

60

50

40

30

2010

CTP

Manual Computerized



27


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 officials often delay in processing online applications. A possible explanation is that in

the manual mode they would visit the CTD office 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 significant difference among divisions in terms of

number of days taken to obtain statutory forms. For examples, while dealers/CTPs in Divisions inand around Hyderabad received statutory forms within 2–3 days (mean), those in divisions such as

Vijayawada and Visakhapatnam received it much later: 6–7 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 office, it is

unclear whether the time taken in transit by courier has been properly accounted for.

Figure 3: Elapsed Time (in Hours)

Dealer

Filing Returns Tax Payment Infromation

AP CG GJ(O) RJ(O) TN CG TN TN

0

0.5

1

1.5

2

2.5

3

3.5

(inhours)

Obtaining Forms

AP GJ(M) RJ(M)

16.261 1.287

337.66

147.83

1.0946

76.6146(in

hours)

Elapsed Time (In hours)

0

50

100

150

200

250

300

350

400

Manual Computerized



28


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 relativelycommon in the manual system, computerization seems to have resulted in a significant lowering of bribes

when obtaining statutory forms. However, the impact is no where as pronounced when filing 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 influence functionaries, to manipulate records in the users favour or avoid being audited by the CTD have

become relatively more important.

AP CG GJ(O) RJ(O) TN CG TN TN

0

Filing Returns Tax Payment Infromation

CTP

1

2

3

4

5

67

(inhours)

Obtaining Forms

AP GJ(M) RJ(M)

12.5194 0.6721

375.95

147.11

1.1353

88.6123(in

hours)

Elapsed Time (In hours)

0

50

100

150

200

250

300

350

400

Manual Computerized



29


Figure 4: Proportion Paying Bribes (%)

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 filing 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)

Filing Returns

GJ(M) RJ(M) GJ(O) RJ(O)

Obtaining Forms

45.00%

40.00%

35.00%

30.00%

25.00%

20.00%

15.00%

10.00%

5.00%

0.00%

Dealer

Filing Returns

GJ(M) RJ(M) GJ(O) RJ(O) AP AP

Obtaining Forms

30.00%

25.00%

20.00%

15.00%

10.00%

5.00%

0.00%

CTP

Manual Computerized



30


Figure 5: Overall Experience

5.6 Overall Quality

The impacts on overall quality largely mirror those of overall experience. (Figure 6)

Figure 6: Overall Quality

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


4.5

4

3.5

3

2.5

2

1.5

1

0.5

0


4.5

4

3.5

3

2.5

2

1.5

1

0.5

0

Dealer

Manual Computerized



31


CTP


4.5

4

3.5

3

2.5

2

1.5

1

0.5

0

5.7 Overall Governance

The impacts on overall quality largely mirror those of overall experience. (Figure 7)

Figure 7: Overall Governance

CTP


4.5

4

3.5

3

2.5

2

1.5

1

0.5

0

Dealer


4.5

4

3.5

3

2.5

2

1.5

1

0.5

0

Manual Computerized



32


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

Number of Trips

0

2

4

6

8

1

1.2

1.4

AP GJ(M)

Obtaining Forms

RJ(M)

0

50

100

200250

300

350

400

AP GJ(M)

Obtaining Forms

RJ(M)

76.6146

1.0946

147.83

16.2611.287

337.66

(inhours

)

Elapsed Time (in hours)

Waiting Time (in minutes)

0

10

20

30

40

50

60

70

(inminutes)

AP GJ(M)

Obtaining Forms

RJ(M)

Proportion Paying Bribes (%)

RJ(M)GJ(M)

10.00%

5.00%

0.00%

15.00%

20.00%

25.00%

30.00%

35.00%

40.00%

45.00%

Obtaining Forms

0

50

100

150

200

250

300

350

400

AP GJ(M)

Obtaining Forms

RJ(M)

88.6123

1.1353

147.11

12.5194 0.6721

375.95

(in

hours)


Number of Trips

0

2

4

6

8

1

1.2

1.4

1.6

AP GJ(M)

Obtaining Forms

RJ(M)


0

(inminutes)

10

20

30

40

50

60

70

80

AP GJ(M)

Obtaining Forms

RJ(M)


RJ(M)GJ(M) AP

10.00%

5.00%

0.00%

15.00%

20.00%

25.00%

30.00%

Obtaining Forms

______

9In 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.

CTP



33


6.2 Filing of Returns

With the exception of Tamil Nadu, computerization seems to have had little impact on users experience

when filing 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 filing 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

____________________

Filing Returns

Filing Returns

(inhours)


GJ(O) TNCG AP RJ(O)

GJ(O) TNCG AP RJ(O)

0

0.2

0.4

0.6

0.8

1

1.2

1.4

1.6

0

0.5

1

1.5

2

2.5

3

3.5

Number of Trips

Filing Returns

Filing Returns

(inhours)

a t ng me n m nutes


0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

12.00%

14.00%

16.00%16.00%

18.00%

20.00%

GJ(O) RJ(O)

GJ(O) TNCG AP RJ(O)

0

10

20

30

40

50

60

70

80

Filing Returns

Filing Returns

(inhours)



0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

GJ(O) TNCG AP RJ(O)

GJ(O) AP RJ(O)

0

10

20

30

40

50

60

70Number of Trips

Filing Returns

Filing Returns

(inhours)


GJ(O) TNCG AP RJ(O)

GJ(O) TNCG AP RJ(O)

0

0.2

0.40.6

0.8

1

1.2

1.4

1.6

0

1

2

3

4

5

6

7

Dealer

CTP



34


7.0 Analysis 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

offices. 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. Table10 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 officials is minimized.

Table 7: Major Suggestions For Improving Online Services

Suggestions AndhraPradesh

Chhattisgarh Gujarat Rajasthan TamilNadu

Eliminate practice of submission of hard copy to CTD (w.r.t

e-filing)

Server speed should be increased

CTD officials should be given adequate training, so that they

can handle queries on online services efficiently

Provide templates (w.r.t. returns) that can perform data verifi-

cation offline

Changes in processes/templates should be immediately com-

municated to users

Involve more banks in E-payment

Provide templates (w.r.t. returns) that can perform data verifi-

cation offline

Tax consultants should be allowed to make E-payment on

behalf of their clients – through Consultant’s Internet Bank-

ing A/C (dealers do not want to give CTPs access to their

accounts)

Maintenance of website should not be done during office

hour



35


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

Suggestions Andhra Pradesh Chhattisgarh Gujarat Rajasthan Tamil Nadu

Awareness campaigns on online ser-

vices 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

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 Andhra Pradesh Chhattisgarh Gujarat Rajasthan Tamil Nadu

Online process is faster 69.27 92.27 27.59 50.14 30.59

Online process is more secure 27.56 58.70 17.58 25.21 10.55

Fewer errors in online process 40.49 43 11.90 17.38 5.94

Fewer visits to commercial taxes department 29.76 56.52 33.81 40.74 10.73

Online process is more transparent 33.17 24.40 8.57 10.83 17.49

Table 10: Reasons for Dependence on CTP’s (%)

Reasons Andhra Pradesh Chhattisgarh Gujarat Rajasthan Tamil Nadu

M C M C M C M C M C

Percentage of Dealers outsourcing at

least part of task to CTPs 72.7 75 92.9 73.1 93.4 80.9 77.4 82.9 68.5 70.0

Reasons for depending on CTPs

Lack of full knowledge of procedures22.1 34.7 69.9 34.4 89.7 80.0 89.5 81.8 52.1 84.6

To ensure accuracy of data given to

Department 83. 69.3 30.9 45.3 47.1 60.7 39.3 35.3 33.2 27.5

Want to avoid interface with Dept.

officials 40.9 30.7 15.3 18.8 1.3 6.4 6.3 10.6 6.1 2.4

Do not want to spend time on this7.4 6.7 17.4 33.6 12.3 25.7 15.7 13.5 40.9 17.5



36


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

Attributes Andhra

Pradesh

Rajasthan11 Gujarat Tamil-

nadu

Chattis-

garh

Optional Mandatory Optional Mandatory

Transparency in CTD 6.5 10.7

Ability to influence policies rules and procedures 7.4

Clarity and simplicity of processes and procedures 6.3

Confidential ity and security of data 7.5

Knowledge of officials 8.9 19.4

Accountabil ity of officials 11.6

Level of corruption 7.6 9.3 14.8 16.5 11.1

Courtesy and helpfulness of officials 7.1

Problem resolution 9 7.6

Complaint handling mechanism 6.1

Cost incurred in procuring statutory forms 7.2

Time and effort in filing returns 9.1

Cost of availing service 9.3

Time and effort in procuring forms8.8

Table 12: Attributes Considered Important by CTP’s (by % of Responses) 12

Attributes Andhra

PradeshRajasthan

13 Gujarat Tamil-

nadu

Chattis-

garh

Optional Mandatory Optional Mandatory

Transparency in CTD 7.7

Ability to influence policies , rules and proce-dures through feedback

6.8 6.9

Level of corruption 8.9 14.1 18.7 18 9.6

Knowledge of officials 7.1 11.9 22.1

Courtesy and helpfulness of officials 6.3

Queuing system at the CTD office 7.9

Design and Layout of forms 9.5

Convenience of location of office 6.3

Complaint handling mechanism and problem

resolution

10.8

Cost incurred in procuring statutory forms 7.1

Time and effort in filing returns 12

Time and effort in procuring forms 7 10.1

Cost of availing services 12.2

_ _________

10The 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 100.11In 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 services12The 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 100.13In Rajasthan and Gujarat CTP’s 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

Quality of governance Quality of service Cost of availing service



37


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 office: Online dealers have to submit hard copy of online returns to

CTD office – thus they have to make at least on trip to the office. There is a need to make this service

end-to-end and eliminate the need to visit office. We understand that this service can be made an end-

to-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 filing•

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

CTD must ensure that the addresses of dealers maintained in their database are accurate – the1.

study revealed that, in many cases, there were delays in delivery of statutory forms because they

were dispatched to wrong addresses.

Officials must process applications and dispatch statutory forms ASAP – forms should be delivered2.

within 15 days of receipt of application.



38


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 formsfrom Divisions/Circles, the time taken to deliver forms to dealers, especially those in Vijaywada and

Visakhapatnam, can be reduced significantly.

8.3 Tax Payment

One of the major suggestions that we received dealers and CTPs is that Tax Consultants should1.

be allowed to make e-payment on behalf of their clients – through Consultant’s 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 simplified so that the service can be used

by the dealers themselves.

Another major suggestion was to Involve more banks in e-payment2.

8.4 Awareness Campaign

Awareness Campaigns on Online return filing and other processes (Downloading statutory forms1.

etc) should be held to increase the percentage share of online mode. This awareness will increase

the confidence 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 fill the data in a

right manner while filing the e-returns in future.

Any change in the template or form should be notified through various communication channels2.such as newspapers, email, website etc.

A help manual should be prepared which guides Dealers and Commercial Tax Practitioner step3.

wise how to file 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 flow would have to be automated after streamliningthe processes; revision of forms and review of requirement of supporting documents.



39


Annexure 1

Service Delivery Process

Obtaining Statutory Forms

Manual Procedure Online Procedure

Andhra

Pradesh

To obtain statutory forms dealers have to give1.

application to CTD – number of forms required

and details regarding forms received earlier are

given in the application

After verification of application, dealers are2.

given statutory forms as per their requirement

– dealers have to collect the forms from CTOOffice

There is no service charge but dealers have to3.

pay some amount towards cost of Statutory

Forms

Dealers (who wish to apply online for statutory forms)1.

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 online2.

application to CDSC

After verification of application, statutory forms are3.dispatched to dealers through courier service

Courier charges and transaction charges are collected4.

from dealers

Gujarat (-do-) To obtain CST forms (C, F, H forms etc.) the dealer1.

sends an online application to CTD

After verification of application, statutory forms are2.

dispatched to dealers through courier service

There is no service charge. However, dealers have to3.

pay Rs. 200/ annually towards courier charges

Filing Returns


Andhra

Pradesh

Return documents are prepared1.

manually (using various forms such as

VAT forms, CST forms) in the format

specified by the department

Dealer submits the original return2.

documents to CTD. After verification

of return documents by the clerk/

CTI, the dealer receives a receipt of

submission

An office copy of the return documents3.

is maintained by the Dealer

There is no service charge for filing4.

returns

Dealer downloads templates for Return Filling from CTD1.

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 take2.

a print out of the template and fill it up manually

Data is entered in the template3.

Template is uploaded and dealer receives an acknowledgement4.

from CTD

There is no service charge for filing returns5.

Chhattisgarh (-do-) (-do-)

Gujarat (-do-) (-do-)

Rajasthan (-do-) (-do-)



40



Tamil Nadu (-do-) Dealer compiles data, which is to be submitted to CTD,1.

manually.

Dealer has to login to his/her account on the website of the2.

department and enter data online. The dealer also has to upload

excel files 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 acknowledgement3.

from CTD


Tax Payment


Chhattisgarh Payment is accepted in Banks/Treasuries1.

Dealers have to fill challan (Banks/Treasuries)2.

- giving payment details

One has to go in person to Banks/Treasuries3.and stand in queues to make payment – at least

one trips is required for this

Tax payment receipt (challan) is submitted4.

to CTD – this is done along with submission

of returns and therefore dealers do not make

separate trips for this.

Dealers can make payment online through their1.

online Bank Accounts7. There is no need to visit

Bank/Treasury to make payment

e-forms are filled by dealers (giving payment2.

details) and after this the software leads user to

selected Bank’s gateway

After online payment, hard copy of e-challan is3. provided through Bank’s 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 –4.

this is done along with submission of returns and

therefore dealers do not make separate trips for

this.

Tamil Nadu (-do-) (-do-)



41


Annexure 2

Outline of the Survey Instrument

Section

No.

Dealing with questions related to

1 Identification 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

profile from the household at the computerized centre

3 Services Availed: Incidence of services availed and date of actual availing of the service

4 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-à-vis computerized systems, ranking of 3 most important attributes out of the above, preference

or otherwise of the computerized land records centre vis-à-vis the manual land records centre

6 Perception of the user about quality of governance and quality of service

7 Perception of user about e governance: General statements to understand the level of liking or otherwise of the

respondent to the e governance system



42


Annexure 3

Profile of Dealers and CTPs

Dealer- Profile

Dimensions AP CG GJ (O) GJ (M) RJ (O) RJ (M) TN

Constitution of

enterprise

Proprietorship 83.1 69.6 62.2 52.6 58.6 63.9 72.8

Partnership 5.2 14.9 23.5 28.1 20.1 12.4 17.6

Private Limited

Company11.6 13.9 9.2 18.2 16.9 19.6 7.8

Public Limited

Company1.7 3.1 1.0 3.2 3.1 1.3

Hindu Undivided

Family.5 .8

Cooperative

Society.5 .4 1.0 .5

Govt. Undertaking 1.0

Type of business Manufacture 15.4 17.9 32.7 34.9 15.7 18.6 13.1

Wholesale 51.5 36.4 63.3 58.3 62.0 63.9 25.0

Retail 22.0 43.3 3.6 6.8 18.1 11.3 56.7

Export 1.1 .5 2.4 3.1 .5

Hire purchase .5 .3 .0 .

Work contract 6.2 1.2 .5 .2 3.3

Leasing .2 .5 .2

Hotels 1.5 .4 1.2

Food Drink 1.6 .6

C & F Agent .4 2.0

Others .2

Banking 1.0

Mode of maintenance

of books and accounts

Manual 2.1 43.0 21.7 29.4 3.1 6.3

Computerized 97.9 57.0 78.3 100.0 70.6 96.9 93.7

Number of staff

involved in activities

w.r.t. commercial

taxes

1 41.3 93.9 76.7 72.9 76.7 69.1 77.8

2 41.3 6.0 17.6 18.2 17.5 25.8 19.7

3 12.1 .1 4.3 4.7 3.6 3.1 1.7

4 4.6 .5 2.1 2.25 .7 .8 2.0 2.1 .5

>5 .4



43


CTP Profile (%)

Dimensions AP CG GJ (O) GJ (M) RJ (O) RJ (M) TN

Education of CTP CA 54.7 33.3 13.5 18.9 55.6 61.5 46.0

LLB 42.4 59.2 77.0 78.4 39.2 26.9 7.1

B Com 3.0 7.5 9.5 2.7 5.2 11.5 47.0

Years of experience of CTP 1-5 14.9 14.9 22.20 21 10.6

6-10 55.2 34.8 25.50 24.9 31.3

11-15 24.6 35.3 17.80 30.8 33.3

16-20 5.0 14.9 10.5 3.8 16.7

21-25 11.2 5.7 8.1

>25 13.30 13.4

Number of staff involved in

activities w.r.t. commercial

taxes

0 2.7

1 43.8 76.6 25.7 21.6 21.6 11.5 46.5

2 42.4 18.9 33.8 31.1 46.4 46.2 23.7

3 8.4 4.5 23.0 20.3 16.3 21.2 14.1

4 3.9 9.5 13.5 7.8 3.8 8.6

5 1.5 5.5 13.7 6.5 7.7 5.1

>5 1.4 9.6 2.0

Computer literacy of CTP Online 100.0 100.0 100.0 100.0 100.0 100.0 100.0

Manual 96.1 65.6 63.5 79.2

Experience in using online

servicesOnline 100.0 100.0 100.0 100.0 100.0 100.0 100.0

Manual 30.6 3.4 38.3 31.1



44


Annexure 4

Reasons for Execessive Wait

Dealers15

Reasons for excessive

waiting time(%)

Rajasthan

(Optional

services)

Rajasthan

(Mandatory

services)

Gujarat

(Optional

services)

Gujarat

(Mandatory

services)

Tamil-

nadu

Chattis-

garh16

Andhra

Pardesh17

Dealers M C Computerized M C Computerized

Long queue/ Too many

applicants at office 57.4 70.2 56.7 23.9 3.8 47.4 25 83.2 65

Officials of CTD are

inefficient (slow in

processing)26.5 14.9 36.7 71.4 80.8 39 25 11.6 15

Too many Applicants

at office 25 10

Processes are too

complex & take lot of

time to complete10.3 10.6 0 4.8 3.8 4.2 8.3

Some windows/

counters were not

operational5.9 2.1 6.7 5.1 1.1

Badly managed queue25

Power Breakdown1.7

Computer and network

connectivity failure 0 11.5 6.8

Others0 2.1 0 1.7

___________

15Rajasthan and Gujarat have analyzed both mandatory and optional services separately which is not done for other states.16In Chhattisgarh the values represent total of both manual and computerized system only for the service of filing of returns ( both dealers and CTP’s).

Payment of taxes has not been considered17In Andhra Pradesh the values represent total of both manual and computerized system only for the service of filing of returns ( both dealers and

CTP’s).



45


CTP’s18

Reasons for exces-

sive wait (%)

Rajasthan

(Optional

services)

Rajasthan

(Mandatory

services)

Gujarat

(Optional

services)

Gujarat

(Mandatory

services)

Tamilnadu Chhat-

tisgarh

Andhra

Pradesh

CTP M C Computerized M C Computerized

Long queue/ Too

many applicants at

office

58.3 50 45.8 47.8 16.7 17.4 92.8 72.7

Officials of CTD

are inefficient

(slow in

processing)

25 27.8 45.8 39.1 58.3 39.1 4.3 9.1

Processes are too

complex & take lot

of time to complete

8.3 16.7 0 13.0 8.3 1.4 9.1

Too many

applicants at office13 100

Badly managed

queue13 9.1

Power breakdown 13

Some windows/

counters were not

operational

4.2 5.6 8.3 0 1 1.4

Computer

and network

connectivity failure

0 12.5 4.3

Others4.2 0 0

__________________

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



PART II

State Reports by Research and Development InitiativePvt. Ltd., Delhi



Andhra Pradesh

Impact Assessment of Commercial Taxes Computerization

2010



51

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. SulakshanaBhattacharya, 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.



53

Table of Contents

Executive Summary ...........................................................................................................................55

1.0 Introduction .................................................................................................................................57

2.0 Profile 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 A–I: Quasi-Experimental Design: Nonequivalent Groups Design (Post-test Only).........78

Annexure A–IIAnnexure A–II: Number of dealers using e-Services for the period: 01.04.2009 to 31.07.2009.......79

Annexure A–III: 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



54




CTP Commercial Taxes Practitioner

CTD Commercial Taxes Department

CDSC Centralized Dealer Service Centre



55

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 filing 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 findings 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 significant impact – it has eliminated trips to office 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

significantly 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 office 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 significant 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 2–3 days, those in divisions such as Vijayawada

and Vishakhapatnam received it much later: around 6–7 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 office - 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 office.

Total elapsed time in availing service is significantly 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 Office.

There is a need to make this service (e-returns) end-to-end by eliminating the need to visit office (for

submission of hard copies of returns). Perhaps a user generated PIN could replace digital signature.



57


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 first 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 five 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 filing 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 five major sections, each with specific objectives:

User Profile: To form a profile of end users - dealers and Commercial Taxes Practitioners1.

(CTPs).

Awareness and Usage of Online Services: To understand the extent of awareness and usage of2.

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 factors3.

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 delivery4.

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 services5.

and increasing usage of online services.

2 Electronic service delivery launch date: April 2005



58


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 VAT (%) CST (%)

M O M O

Filing of returns2 98.61 1.39 98.44 1.56

Application of statutory forms - - 37.52 62.48

Information Dissemination* 99 1 99 1

Applications for Registration** - - - -

*Approximate figures based on perception of Officials

**Online Applications for Registration was introduced in November 2009

Source: Commercial Taxes Department, Andhra Pradesh

There were several factors that had to be taken in to account while developing research design and

sampling methodology for this study:

There were four major online services in Andhra Pradesh in July 2009.1. Table 1 give details of

online services in the State and service wise percentage of users

All online services were voluntary – dealers could either use manual mode or online mode2.

according to their convenience

During pilot study we understood that many dealers in Andhra Pradesh relied (either partially or3.

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 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:

_________

2E-returns is optional for dealers.



59


Services availed in last three months (90 days) and mode of service used (online/manual) – this is1.

needed to classify dealers and CTPs as control or treatment group

Whether processes w.r.t services used were done in-house or CTP’s assistance was taken (partially/2.

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

Address of CTP - in case CTP’s assistance was sought3.

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 field work are

given in Annexure E.


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

Commercial Taxes Practitioners 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 find 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



60


major reasons:



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:

Obtaining Statutory Forms and Filing of Returns. Other services could not be analyzed as there

weren’t sufficient responses for them.

4.1 Obtaining statutory forms

Table 3: Difference between Manual & Online processes of obtaining statutory forms

Manual Online

To obtain statutory forms dealers have to give1.

application to CTD – number of forms required and

details regarding forms received earlier are given in

the application

After verification of application, dealers are given2.

statutory forms as per their requirement – dealers

have to collect the forms from CTO Office

There is no service charge but dealers had to pay3.

some amount towards cost of Statutory Forms

Cost of Statutory forms (For 100 forms):

4. In manual mode dealer have to visit CTO Office at

least once to obtain statutory forms

Dealers (who wish to apply online for statutory forms) have1.

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 application2.

to CDSC

After verification of application, statutory forms are dispatched3.

to dealers through courier service

Courier charges and transaction charges are collected from4.

dealers

Cost of Statutory forms (For 100 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 Office 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.

__________

3Rama Informatics Ltd. is the service delivery partner w.r.t CDSC4

Dealers have to submit a specified amount with CDSC during registration – cost of statutory forms, transaction charges and courier charges arededucted from this deposit.

Form At Division / Circle Offices

Way bills Rs. 120/-

C,F,H Rs.108/-

Form At CDSC

Way bills Rs. 250/-

C,F,H Rs. 250/-



61


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 Manual Computerized Change (C-M) Significance

Dealer 1.00 .00 -1.00 **

CTP 1.00 .00 -1.00 **

None of the online users visited CTD to obtain statutory forms. Clearly, online service has helped

users - it has eliminated trips to CTD office and thus saved waiting time, travel time, travel cost and

salary/wages spent on availing service.

Number of Trips

-1

1

0

-1

0

1

-1.5

-1

-0.5

0

0.5

1

1.5

Manual Computerized Change (C-M)

Dealers CTPs



62


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)


Dealer 26.75 9.67 -17.078 **

CTP 26.64 8.16 -18.479 **

Online users did not visit CTD Office to obtain forms - thus saving salary/wages that would have been

spent for waiting time and travel time.

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

service

-17.078

9.67

26.75

-18.479

8.16

26.64

-25

-20

-15

-10

-5

0

5

10

15

20

25

30


Dealers CTPs

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



63


Total elapsed time in availing service

Table 6: Total elapsed time in availing service (Hours)


Dealer 1.0946 76.6146 75.52001 **

CTP 1.1353 88.6123 87.47696 **

The data show that is significant 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 office 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 significant

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 2–3 days (mean), those

in divisions such as Vijayawada and Vishakhapatnam received it much later: 6–7 days.

Total Elapsed Time in Availing Service (Hours)

75.5200176.6146

1.0946

87.4769688.6123

1.1353

0

10

20

30

40

50

60

70

80

90

100


Dealers CTPs



64


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 file 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 submissionMost dealers (manual and online) take help from CTPs for either one or both components mentioned

above, mainly because: dealers lack sufficient 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 filing of returns. Major differences

are given below:

Table 7: Differences between manual and online mode of filing of returns

Manual Online

Return documents are prepared1.manually (using various forms such

as VAT forms, CST forms) in the

format specified by the department

Dealer submits the original return2.

documents to CTD. After verification

of return documents by the clerk/

CTI, the dealer receives a receipt of

submission

An office copy of the return3.

documents is maintained by the

Dealer

There is no service charge for filing4.

returns

1. Dealer downloads templates for Return Filling from CTDwebsite – this is a one time activity, unless changes in template

are brought about by the CTD

2. Dealer compiles data as per the templates – some dealers take a

print out of the template and fill it up manually

3. Data is entered in the template

4. Template is uploaded and dealer receives an acknowledgement

from CTD

5. Dealer has to submit a hard copy of the return (print out of

template) to CTO Office and receive a receipt of submission -

receipt is given without verification as the dealer has already

submitted return online

6. There is no service charge for filing returns

Respondents were asked to provide details on time, effort and cost incurred in filing 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.



65


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 Manual Computerized Change (C-M) Significance

Dealer 1.5205 2.2611 0.74061 **

CTP 1.6442 2.0532 0.40902 **

Total man-hours spent in preparation of documents are significantly higher for online users. This is

mainly because online users have to enter data in online template.


1.5205

2.2611

0.74061

1.6442

2.0532

0.40902

0

0.5

1

1.5

2

2.5


Dealers CTPs

__________

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



66


Total cost of preparation of documents

Table 9: Total cost of preparation of documents7 (INR)


Dealer 769.1463 815.200 46.05366 NS

CTP 351.75 400.55 48.794 **

Dealers: There is no significant difference between the two modes w.r.t total cost of preparation of

documents.

CTPs: Total cost of preparation of documents is significantly higher in online mode.

Total Cost of Preparation of Documents (INR)

46.05366

815.2

769.1463

48.794

400.55

351.75

0

100

200

300

400

500

600

700

800

900


Delers CTPs

__________

7This 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



67


4.2.2 Time and Cost of Submitting Documents for Filing Returns

Number of trips for Filing Returns



Dealer 1 1 0 NS

CTP 1 1 0 NS

Both manual and online users have to make at least one trip to CTD office. Therefore there is nosignificant difference between the two modes w.r.t. number of trips for availing service.

Number of Trips

1

1

0

11

00

0.2

0.4

0.6

0.8

1

1.2


Dealers CTPs



68


Waiting time8 for Filing Returns

Table 11: Waiting time (Minutes)


Dealer 31.32 37.19 5.873 **

CTP 32.37 19.52 -12.852 **

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.

Waiting time (Minutes)

31.32

37.19

5.873

-12.852

19.52

32.37

-20

-10

0

10

20

30

40


Dealers CTPs

__________

8 Time spent in queue and transaction time at counter



69





Dealer 30.79 51.54 20.755 **

CTP 31.46 40.74 9.286 **

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)


Dealer .00 .00 .00

CTP .00 .00 .00

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)

10Includes 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


service

20.755

51.54

30.79

9.286

40.74

31.46

0

10

20

30

40

50

60


Dealers CTPs



70



Table 14: Total elapsed time in availing service


Dealer .5173 1.1979 0.68063 **

CTP 0.5396 0.88 0.34035 **

Total elapsed time is significantly 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

Office.


0.68063

1.1979

0.51730.34035

0.88

0.5396

0

0.2

0.4

0.6

0.8

1

1.2

1.4


Dealers CTPs



71


5.0 Overall Assessment

Dealers and CTPs were asked to rate some attributes11 w.r.t optional services provided by CTD on a

five 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 significant. In the remaining 9 attributes there was significant

difference between the two modes. The table given below lists the attributes that showed significant

difference:

Table 15: Attributes that showed significant difference

Attributes on which online service was rated

higher than manual service

Attributes on which manual service was

rated higher than online service

Time and effort in filing returns1.

Cost incurred in filing returns2.

Time & effort in procuring statutory3.forms

Cost incurred in procuring statutory forms4.

Queuing system at CTD Office5.

Overall quality of governance1.

Confidentiality & security of data2.

Accountability of Officials3.

Convenience of location of office4.

CTPs: Analysis shows that in the case of 16 attributes difference of mean scores (of manual and

online users) was not statistically significant. In the remaining 11 attributes there was significantdifference between the two modes. The table given below lists the attributes that showed significant

difference:

Table 16: Attributes that showed significant difference

Attributes on which online service was rated

higher than manual service

Attributes on which manual service was

rated higher than online service


Accountability of officials2.

Knowledge of officials3.Convenience of location of office4.


Durability and legibility of certificates/6.receipts CTP

Cost incurred in procuring statutory1.forms

Clarity and simplicity of processes and2.

proceduresTransparency in CTD3.

Level of corruption4.

Adherence to Citizen Charter 5.

______________

11There were 27 attributes for dealers and CTPs



72


Composite Score

Interview schedule wise Composite Scores were calculated based on information collected from the

section: Overall Assessment . Results are given in the figure below:

6.0 Suggestions of Respondents

Major suggestions for improving online services

Eliminate practice of submission of hard copy to CTD (w.r.t e-filing)•Server speed should be increased•

Maintenance of website should not be done during office hour •

Provide templates (w.r.t. returns) that can perform data verification offline•

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 officials of CTD (41 Officers) at the Circle level. Information

gathered from them is summarized below:

Impact of Commercial Taxes E-Governance Project

Productivity of CTD officials has increased•

Maintenance of records have become easier •

Errors have reduced significantly•

Composite Score

0.006219

0.021438

0

0.005

0.01

0.015

0.02

0.025 Dealers

CTPs



73


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•


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 significantly.



74


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)


M O M O

Filing of returns 98.61 1.39 98.44 1.56

Application of statutory forms - - 37.52 62.48

Information Dissemination* 99 1 99 1

Applications for Registration** - - - -


**Online Applications for Registration was introduced in November 2009

Source: Commercial Taxes Department, Andhra Pradesh

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 defined 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 (includingapplication tracking), 3. Online application for statutory forms. Treatment groups were asked to

provide information pertaining to online services only.

Comparison Group has been defined 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.

______________




75


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 first stage of selection itself.

All 25 Divisions were arranged in decreasing order of their activity level: online filing of returns

and online application for statutory forms. Please refer Annexure A–II.

Out of 25 Divisions, 13 divisions that had limited number of e-users were eliminated – as it would

be difficult to find treatment group (online users). Please refer Annexure A–II.

The remaining 12 divisions were divided in 6 groups and one division was selected from each

group. Please refer Annexure A–II.

Table 2: Selected Divisions

Division No. of Dealers

Using e-Services

Percentage13 Sample Size

proportionate to

activity level

Modified Sample

Size*

Punjagutta 59102 66.22 530 304

Secunderabad 11040 12.37 99 96

Abids 8582 9.62 77 99

Vijayawada-II 5964 6.68 53 102

Charminar 3098 3.47 28 96

Visakhapatnam 1463 1.64 13 105

Total 89249 100% 800 802

* 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 difficult to find treatment group in these

Circles) and the remaining Circles were selected. In all, 42 Circles has been covered in 6 Divisions(Please refer Annexure A–III).

______________

13Percentage of users in each Division



76


Table 3: Selected Circles

Division Selected Circle

Punjagutta

LTU

Vengalrao Nagar

Srinnagar Colony

Panjagutta

Khairatabad

Somajiguda

Sanatnagar

Jubilee Hills

Secunderabad

LTU

Tarnaka

General Bazar Circle

Musheerabad

Mahankali Street

R.P. Road

Gandhinagar

Vidyanagar

Abids

LTU

Basheerbagh

M.J. Market

Narayanaguda

AbidsSultan Bazar

Hyderguda

Barkatpura

Nampally

Vijayawada-II

LTU

Benz Circle

Autonagar

Suryarao Pet

Sitarampuram

Vuyyuru

Charminar

LTUMalakpet

Afzalgunj

Begum Bazar

Vishakhapatnam

Daba Gardens

Anakapalli

Suryabagh

China Waltair

Dwarakanagar

Narisipatnam (Steel Plant)

Gajuwa



77


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 Sample Size/Division No of selected Circles/Division Sample Size/

Circle

Punjagutta 304 8 304/8 = 38Secunderabad 96 8 96/8= 12

Abids 99 9 99/9 = 11

Vijayawada-II 102 6 102/6 = 17

Charminar 96 4 96/4 = 24

Visakhapatnam 105 7 105/7 = 15

Total 802 42

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



78


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, it’s

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 didn’t make a difference when in fact it did, or that it did make a difference

when in fact it didn’t.

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)



79


nnexure –IIAnnexure A–II

Number of dealers using e-Services for the period:

01.04.2009 to 31.07.2009

Sl.No Division Name Online Issue of

Statutory Forms

Online Filing

of ReturnsTotal e-Users

1 Punjagutta 57651 1451 59102

2 Saroor Nagar 16976 166 17142

3 Secunderabad 10918 122 11040

4 Hyderabad Rural 10726 188 10914

5 Abids 8511 71 8582

6 Begumpet 7100 140 7240

7 Eluru 6470 0 6470

8 Vijayawada-II 5821 143 5964

9 Charminar 3058 40 3098

10 Nalgonda 1636 5 1641

11 Vijayawada-I 1425 77 1502

12 Vishakhapatnam 35 1428 1463

Eliminated Divisions

13 Kakinada 1442 0 1442

14 Chittoor 15 342 357

15 Nizamabad 300 3 303

16 Kurnool 267 1 268

17 Anantapur 91 4 95

18 Warangal 1 12 13

19 Guntur 0 2 2

20 Vizianagaram 0 1 1

21 Adilabad 0 0 0

22 Karimnagar 0 0 0

23 Kadapa 0 0 024 Narasaraopet 0 0 0

25 Nellore 0 0 0

Total 132443 4196 136639

Note: Divisions in Bold have been selected

Source: CTD, Andhra Pradesh



80


Annexure A–III

Selection of Circles

Status Report from 01.04.2009 to 31.07.2009

Sl.

No.Selected Division Circle Name

Issue of

Statutory Forms

Filing of ReturnsTotal

VAT CST

Online Online Online

1

Punjagutta

LTU 14734 0 0 14734

Vengalrao Nagar 13086 31 20 13137

Srinnagar Colony 7926 836 544 9306

Panjagutta 7229 95 0 7324

Khairatabad 6938 53 0 6991Somajiguda 3932 46 38 4016

Sanatnagar 2993 38 31 3062

Jubilee Hills 2813 8 0 2821

TOTAL 59651 1107 633 61391

2

Secunderabad

LTU 5853 4 0 5857

Tarnaka 2097 21 21 2139General Bazar

Circle1203 15 14 1232

Musheerabad 698 5 2 705

Mahankali Street 680 5 3 688

R.P.Road 516 23 21 560

Gandhinagar 237 0 0 237

Vidyanagar 113 3 3 119Ashok Nagar 86 3 0 89

Market Street Circle 40 12 5 57

Hissamgunj Circle 28 8 3 39

TOTAL 11551 99 72 11722

3

Abids

LTU 3593 5 5 3603

Basheerbagh 1773 19 15 1807

M.J.Market 1255 1 1 1257

Narayanaguda 807 0 0 807

Abids 464 1 1 466

Sultan Bazar 344 1 0 345

Hyderguda 289 1 1 291

Barkatpura 229 17 13 259

Nampally 101 4 4 109Gowliguda 78 4 3 85

Agapura 15 17 7 39

TOTAL 8948 70 50 9068

4

Vijayawada-II

LTU 2249 0 0 2249

Benz Circle 2410 3 0 2413

Autonagar 514 0 0 514

Suryarao Pet 504 0 0 504

Sitarampuram 402 0 0 402

Vuyyuru 74 130 0 204

Krishnalanka 35 0 0 35

Machilipatnam 21 0 0 21

Governorpet 0 0 0 0

TOTAL 6209 133 0 6342



81


Sl.

No.Selected Division Circle Name

Issue of

Statutory Forms

Filing of Returns

Total VAT CST

Online Online Online

5

Charminar

LTU 1947 0 0 1947

Malakpet 540 11 9 560

Afzalgunj 426 0 0 426

Begum Bazar 91 0 0 91

Lord Bazar 73 2 0 75

Mehdipatnam 15 7 5 27

Osmangunj 10 1 1 12

Charminar 0 3 0 3

Maharajgunj 0 0 0 0

Nizam Shahi Road 0 0 0 0

TOTAL 3102 24 15 3141

6

Vishakhapatnam

Daba Gardens 0 461 145 606

Anakapalli 5 383 83 471

Suryabagh 0 173 47 220

China Waltair 0 128 78 206

Dwarakanagar 0 87 56 143

Narisipatnam (Steel

Plant) 14 80 32 126

Gajuwaka 0 76 48 124

Kurupam Market 0 47 35 82

LTU 16 3 3 22

TOTAL 35 1438 527 2000

Note: Circles highlighted in Bold have been selected



82


Annexure – B

Andhra Pradesh - Listing Schedule for Dealers

Address of Dealer Name Code

Division

Circle

Turnover in FY 2008-09

< 50 lakhs………………………………………………….1

50 lakhs – 1 crore…………………………………………2

> 1 crore…………………………………………………….3

Services availed in last 90 days

Service Used/Not Mode Outsourcing

Filing Returns Yes-1;

No-2

Manual -1; Online - 2 In-house - 1, Partial - 2, CTP - 3

Obtaining Statutory Forms Yes-1;

No-2


Applications for Registration Yes-1;

No-2


Obtaining Information Yes-1;

No-2


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

Name and Code of Investigator:

Date:

Andhra Pradesh - Listing Schedule for CTPs

Address of CTP Name Code

Division

Circle

Turnover in FY 2008-09 (INR)

Optional Services availed in last 90 days

Service Used/Not Mode

Filing Returns Yes-1 No-2 Manual -1 Online - 2

Obtaining Statutory Forms Yes-1 No-2 Manual -1 Online - 2

Applications for Registration Yes-1 No-2 Manual -1 Online - 2

Obtaining Information Yes-1 No-2 Manual -1 Online - 2


Date:



83


________________

14As per the listing exercise

15As per Commercial Tax Department records

Annexure – C

Andhra Pradesh: Interview Schedule for Dealers

A. IDENTIFICATION DETAILSSl. No. State State Code District District

Code

Date of Interview (DD/MM) Respondent’s Name &

Designation

Address of Dealer with landmark Phone Location of Office

Land : Town/

Village

Code Rural…………..1

Urban………….2Mobile:

TIN Group14 Division Division

CodeTreatment (online)……..…1

Comparison (manual)……2

Interviewer Editor Supervisor Circle Circlecode

Name Name Name

Code Code Code Distance from Circle (Km.)

Signature Signature Signature

B. DEALER PROFILE1B. Please specify the Constitution of your

enterprise

Proprietor ....................................................1

Partnership………………………….….….2

Private Limited Company……….….…….3

Public Limited Company…………………4

Hindu Undivided Family …………………5

Co-operative Society………………….…..6

Government Undertaking……………..…..7

Others (Specify)2B. Please specify the type of business15 Manufacture……………………………........…1

Wholesale…………………………….….......…2

Retail………………….…………………......…3

Export…………………………….…….......…..4

Hire Purchase……………….…………........….5

Works Contract………………..……….......…..6

Leasing………………………….……….......…7

Hotels…………………………………......……8

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 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 maintained within the

organization

Manual …………………………..……..….1

Computerized……………………..……….2

Not maintained at all……………………….3

6B. Number of staff in your organization who are

involved in activities related to Commercial

Taxes



84


C. AWARENESS AND USAGE OF ONLINE SERVICES

1C. Are you aware of online services provided byCommercial Taxes Department?

Yes - 1 No - 2 Part D

2C. Please specify the first source of awareness about online

services provided by Commercial Taxes Department

Newspaper…………………….……………………..1

Television…………………………………………….2

Other Dealers………………………………………..3

CTPs…………..…………………………..…………4

Commercial Tax Dep. Official……………….…….5

Others (Specify)

3C. Which are the online services provided by Commercial

Taxes Department?

(Multiple Responses)

Application for Registration………………………....1

Application for issue of statutory forms……………2

Filing Returns…………………………………………3

Information Dissemination…………………………..4

4C. Have you used any of the online services provided by

Commercial Taxes Department?

Yes – 1

No – 2 7C

5C. Please give details regarding online services used and

frequency of use

Frequency of Use

Fortnightly…………………….1

Monthly………………….…… 2

Quarterly………………………3

Annually………………………..6

Others (Specify)

Online Service Used/Not Frequency

Filing Returns Yes-1 No-2

Application for Forms Yes-1 No-2

Application for

registration

Yes-1 No-2

Seeking information Yes-1 No-2

6C. What are the reasons for using online service (s)


PLEASE PROCEED TO PART D AFTER

ANSWERING THIS QUESTION

Online process is faster …………….………..…….1

Online process is more secure……………….….…2Fewer errors in online process…………….……….3

Fewer visits to Commercial Taxes Department…....4

Online process is more transparent……………...….5

It is mandatory………………………………..…….6

Others (Specify)

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 Office……………….8Others (Specify)

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 A B

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 Registration……………………………………………………3

Seeking information (including application tracking)……………4 15D

2



85


2D. Mode of service: Online – 1; Manual – 2

3D. Was the online service availed mandatory/optional?

Mandatory – 1; Optional – 2

[NOT APPLICABLE FOR MANUAL USERS]

4D. Were processes related to the service outsourced?

No, it was done completely in-house – 1 6D

Yes, it was partially done by CTP – 2

5D. What are the reasons for depending on CTP (Multiple responses)

Due to lack of sufficient knowledge on processes……….1

To ensure accuracy of data given to Department.……….2

Want to avoid interface with Dep. Officials……………….3

Do not want to spent time on this………………………….4

Others (Specify)

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 support-

ing documents for manual filing of returns?

PLEASE NOTE THAT THIS COULD BE APPLICABLE FOR ONLINE US-

ERS AS WELL - MANY OF THEM ARE REQUIRED TO FILE HARD COP-

IES, EVEN AFTER FILING RETURNS ONLINE

7D. How many man-hours were spent for data entry in online template?

(NOT APPLICABLE FOR MANUAL USERS)

8D. Total man-hours spent for preparation of documents for filing returns (6D + 7D)

9D. Please calculate the amount spent as salary/wages for preparation of documents for

filing returns (Total man-hours spent X wage per man-hour) {INR}

10D. Cost of stationery16 and photo copies w.r.t filing returns {INR}

11D. Cost of access to Internet17 (INR)


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 filing 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 cor-rection?

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 certificate……………………………………….…………....…2

To correct error in certificate/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 fulfill requirement of physical presence…………………………....….7

Others (Specify)

Trip Purpose Time Purpose Time

I

II

III

IV

V

____________

16Ledgers, CDs, printing paper, printing ink, carbon paper etc.

17Internet charges based on hours of internet used for this particular service



86


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)

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

Officials of CTD are inefficient (slow in processing)……………………………….2

Processes are too complex & takes lot of time to complete…........…………..…….3Too many applicants at office……………………………………………………….4

Badly managed queue………………………………………………………………5

Some windows/counters were not operational……………………………………..6

Power breakdown……………………………………………………………..…….7

Computer/network connectivity failure………………………………………….….8

Others (Specify)

20D. Please specify the travel cost incurred in making a round trip to CTD Office (INR)

21D. Total travel cost incurred in availing service (number of trips X travel cost per trip) INR

22D. Please specify the travel time spent in making a round trip to CTD Office (Min.)

23D. Total travel time spent in availing service (number of trips X travel time per trip) Min.

24D. How many times did you log-in to avail online service? [NOT APPLICABLE FOR

MANUAL USERS]

25D. 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 first…………………3

Others (Specify)

26D. 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]

27D. Do you think that the time taken to complete online transaction was excessive?

Yes – 1; No – 2 29 D [NOT APPLICABLE FOR MANUAL USERS]

28D. Why do you think are the reasons for excessive time in online transactions?

Server is slow……………………………………………………………….………1

Processes are complex and time consuming……………………………………2Errors occur while uploading template……………………………………………3

Others (Specify)

29D. 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, PREP-

ARATION OF SUPPORTING DOCUMENTS AND DATA ENTRY

30D. Service Charge paid to department for which you got a receipt? (INR)

31D. Service charge paid to Tax Consultant for facilitating service from CTD Office (INR)


32D. What was the total payment18 made by you for availing the service? (INR)

____________

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



87


33D. 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 serviceapplied for? (This does not include time taken for filling 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 SUB-

MIT HARD COPIES TO CTD

Manual

Process

Manual Process

Online Process Online Process

Total Total

34D. Did you pay a bribe directly to Officials?

Yes-1; No-2 Part E

35D. For what purpose did you pay the bribe indicated in the previous question?


To avoid audit assessment by CT Department……………………………….1

To influence functionaries to manipulate records in your favor………….….2

To expedite the process……………………………..…………………….……3

Others (Specify)

E. OVERALL ASSESSMENT On a 5 point scale (Dissatisfied-1; Somewhat dissatisfied-2; Neutral-3; Somewhat satisfied-4; Very satisfied-5) please rate the follow-

ing attributes (Online services for Treatment Group and Manual services for Comparison Group)

FILING OF RETURNS

1E Time and effort in filing returns 2E Cost incurred in filing 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)

6E Overall quality of service19 7E Overall quality of governance20

8E Overall experience of availing service from CTD 9E Accuracy of transactions

10E Confidentiality and security of data 11E Predictability of outcome

12E Time and effort in accessing information 13E Accountability of Officials

14E Clarity and simplicity of processes and procedures 15E Knowledge of Officials

16E Transparency21 in CTD 17E Level of corruption22

18E Ability to influence policies, rules and procedures

through feedback

19E Problem resolution23

20E Courtesy and helpfulness of Officials 21E Convenience of working hours24

22E Complaint handling mechanism (including service

provided by Call centre/Helpline)

23E Convenience of location of office (accessibility and

ambience)

24E Queuing system at CTD Office 25E Dependence on CTPs25

26E Adherence to Citizen Charter 26 27E Durability and legibility of certificates/receipts

28E Among the above given factors please list the three factors that you consider the most importantRECORD THE S.NO. OF THE FACTOR

_______________

19Quality of service is understood as fairness, speed of processing, accuracy of transactions, legibility and durability of certificates and printouts,convenience of obtaining service20Governance is understood as transparency, accountability and corruption-free working21Understanding and awareness of the basis on which decisions affecting you/other users are taken by officials22Very corrupt-1; Somewhat corrupt-2; Neutral-3; Somewhat less corrupt-4; Not at all corrupt-523Mechanism to rectify inadvertent errors in forms/documents submitted by Dealers to CTD e.g. computational errors/wrong figures24Hours of service in case of online services25 Very much dependant -1; Somewhat dependant -2; Neutral-3; Somewhat less dependant-4; Not at all dependant-5

26Adherence of the time frame for service delivery (elapsed time) to that specified in citizen’s charter



88


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 Office Hours of Traders/Tax Consultants…………......….…......3

CTD officials should be given adequate training, so that they can handle queries on online services efficiently.........4

Provide templates(w.r.t. returns) that can perform data verification offline……………………………….…...…...…5

Changes in processes/templates should be immediately communicated to dealers…..……………..………..........…..6

Others (Specify)

2F. Please give your suggestions to increase use of online services:


Awareness campaigns on online services for dealers…………………………………………..…………………………1

Establishment of Common Service Centres to facilitate E-services to all dealers……………..……………………...…..2Online 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.

__________

27This part is for all users - manual and online



89


Annexure – D

Andhra Pradesh: Interview Schedule for CTP

G. IDENTIFICATION DETAILSSl. No. State State

Code

District District

Code

Date of Interview (DD/MM) Respondent’s Name

Address with landmark Location of OfficeTown/

Village


Urban………….2Phone Group28 Division Division

CodeLand Line : Mobile: Treatment (online)………..…1

Comparison (manual)………2

Interviewer Editor Supervisor Circle Circle

code Name Name Name

Code Code Code Distance from Circle (Km.)Signature Signature Signature

H. Profile of Tax Consultant1B. Educational qualification 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 Taxes6B. Is the Tax Consultant computer literate? Yes – 1

No - 2 Part C7B. Has the Tax Consultant used any online E-Gov. service Yes – 1

No - 2

I. AWARENESS AND USAGE OF ONLINE SERVICES1C. Are you aware of online services provided by


Yes - 1

No - 2 Part D



90


2C. Please specify the first source of awareness about

online services provided by Commercial TaxesDepartment

Newspaper…………………………………..1

Television………………………………..….2Dealers………..………….…………...……..3

Other CTPs…………….……..………......…4

Commercial Tax Dep. Official…......….…….5

Others (Specify)3C. Which are the online services provided by Commercial

Taxes Department?


Application for Registration………………....1

Application for issue of statutory forms….…2

Filing Returns……………………………..…3

Information Dissemination…...……………...44C. Have you used any of the online services provided by


Yes – 1

No – 2 7C5C. Please give details regarding online services used and

frequency of useFrequency of Use

Daily……………………….……..1

Weekly……………………..…..…2

Fortnightly…………………….….3

Monthly…………………….…… 4

Quarterly……………………….…5

Annually…………………………..6

Others (Specify)

Online Service Used/Not FrequencyFiling Returns Yes-1 No-2

Application for

Forms

Yes-1 No-2

Application for

registration

Yes-1 No-2


Others (Specify) Yes-1 No-2






Online process is more secure……………….….…2

Fewer errors in online process…………….……….3

Fewer visits to Commercial Taxes Department…...4Online process is more transparent……………….5

It is mandatory…………………………………….6

Others (Specify)




Do not have access to hardware/software…...…...2


Unreliable power situation…………………..…..4



Online process is slow……………………….…..7

Have to submit hard copy to Office……………….8

Others (Specify)

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

A B

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

__________




91



38D. Was the online service availed mandatory/optional w.r.t client?



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 filing 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



41D. Total man-hours spent for preparation of documents for filing returns

(6D + 7D)

42D. Please calculate the amount spent as salary/wages for preparation of

documents for filing returns (Total man-hours spent X wage per man-

hour) {INR}




45D. Cost of Statutory Forms and other Forms – including courier charges

(INR)



47D. How many trips did you need to make for the service – including

trips for error correction?

48D. 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 certificate…………………….………….……2To correct error in certificate/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 fulfill requirement of physical presence…………….7

Others (Specify)

Trip Purpose Time Purpose TimeI

II

III

IV

V

___________________

29 Ledgers, CDs, printing paper, printing ink, carbon paper etc.




92


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 incomplete………6

Others (Specify)

50D. Do you think you had to wait excessively for availing service in any

of the trips?

Yes – 1 No – 2 17D


Long queue………………………………….……………….....…1

Officials of CTD are inefficient (slow in processing)…………….2

Processes are too complex & takes lot of time to complete…...….3

Too many applicants at office………………….............………….4

Badly managed queue…………………………...........………..…5

Some windows/counters were not operational……………………6

Power breakdown…………………………….......................…….7

Computer/network connectivity failure…………………….....….8

Others (Specify)

52D. Please specify the travel cost incurred in making a round trip to CTD

Office (INR)

53D. Total travel cost incurred in availing service (number of trips X travel

cost per trip) INR

54D. Please specify the travel time spent in making a round trip to CTD

Office (Min.)

55D. Total travel time spent in availing service (number of trips X travel

time per trip) Min.

56D. How many times did you log-in to avail online service? [NOT

APPLICABLE FOR MANUAL USERS]

57D. 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


Service was not available as server was slow…………………....1

Portal was undergoing maintenance………………………….…..2

Templates had changed, therefore it had to be downloaded first…3

Others (Specify)

58D. What was the total time taken to complete transaction Online

- it does not include time taken for data entry? (Min) [NOT




93


59D. Do you think that the time taken to complete online transaction was

excessive?Yes – 1; No – 2 26D [NOT APPLICABLE FOR MANUAL

USERS]

60D. 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)

61D. 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

62D. Service Charge paid to CTD for which you got a receipt (INR)

63D. What was the total payment31 made by you for availing the service?

(INR)

64D. 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 filling 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 Manual Process


Total Total


Yes-1; No-2 Part E

66D. For what purpose did you pay the bribe indicated in the previous

question?


To avoid audit assessment by CT Department……….............….1

To influence functionaries to manipulate records in your favor…..2

To expedite the process………… …………………….........……3

Others (Specify)

____________________

31

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



94


K. OVERALL ASSESSMENT

On a 5 point scale (Dissatisfied-1; Somewhat dissatisfied-2; Neutral-3; Somewhat satisfied-4; Very satisfied-5) pleaserate the following attributes (Online services for Treatment Group and Manual services for Comparison Group)

FILING OF RETURNS

1E. Time and effort in filing returns 2E. Cost incurred in filing 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


6E. Overall quality of service32 7E. Overall quality of governance33

8E. Overall experience of availing service from CTD 9E. Accuracy of transactions

10E. Confidentiality and security of data 11E. Predictability of outcome

12E. Time and effort in accessing information 13E. Accountability of Officials14E. Clarity and simplicity of processes and

procedures

15E. Knowledge of Officials

16E. Transparency34 in CTD 17E. Level of corruption35

18E. Ability to influence policies, rules and procedures

through feedback

19E. Problem resolution36

20E. Courtesy and helpfulness of Officials 21E. Convenience of working hours37

22E. Complaint handling mechanism (including

service provided by Call centre/Helpline)

23E. Convenience of location of office

(accessibility and ambience)24E. Queuing system at CTD Office 25E. Durability and legibility of certificates/

receipts26E. Adherence to Citizen Charter 38 27E. Dependence on Officials39

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:


Eliminate practice of submission of hard copy to CTD………………………………...................……...……..1

Server speed should be increased…………………………………………………………………………………2

Maintenance of website should not be done during Office Hours of Traders/Tax Consultants………........……..3

CTD officials should be given adequate training, so that they can handle queries on online services efficiently..4

Provide templates(w.r.t. returns) that can perform data verification offline………………………………………5

Changes in processes/templates should be immediately communicated to dealers………………………………6Others (Specify)

____________________

32Quality of service is understood as fairness, speed of processing, accuracy of transactions, legibility and durability of certificates and printouts,

convenience of obtaining service

33Governance is understood as transparency, accountability and corruption-free working

34Understanding and awareness of the basis on which decisions affecting you/other users are taken by officials

35Very corrupt-1; Somewhat corrupt-2; Neutral-3; Somewhat less corrupt-4; Not at all corrupt-5

36Mechanism to rectify inadvertent errors in forms/documents submitted by Dealers to CTD e.g. computational errors/wrong figures

37Hours of service in case of online services


39Very much dependant -1; Somewhat dependant -2; Neutral-3; Somewhat less dependant-4; Not at all dependant-5




95



(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.



96


Annexure – E

Field Work

At the Circle Level, two locations on the basis selected on their distance from Circle Of fice – 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 classified as treatment/•

control group

Similarly, CTPs were also classified as treatment/control group. Contact details of CTPs were•

collected through listing exercise among Dealers



97


Annexure – F

Andhra Pradesh: Dealers Using Optional Online Services

SECTION A: Identification Details

Table 1: Group wise frequency

Group Frequency Percent

Treatment (Online)309 50.7

Comparison (Manual)

301 49.3Total610 100.0

Table 2: Division and circle wise frequency

Division Circle Online Manual

Punjagutta

LTU 15 0

Vengalrao Nagar 15 18

Srinagar Colony 14 16

Punjagutta 14 16

Khairatabad 16 16

Somajiguda 14 16

Sanatnagar 17 13

Jubilee Hills 4 16

Tarnaka 8 0

Total 117 111

Secunderabad

LTU (2) 4 1

Tarnaka 4 4

General Bazaar Circle 4 4

Musheerabad 4 4

Mahankali Street 5 5

R P Road 5 5

Gandhinagar 5 5

Vidyanagar 5 8

China Waltair 0 0

Dwarkanagar 0 0

Narisipatnam 0 0

Gajuwaka 0 0

Total 36 36



98


Division Circle Online Manual

Abids

LTU (3) 4 4

Basheerbagh 4 4

M J Market 4 4

Narayanaguda 4 4

Abids 4 4

Sultan Bazaar 4 4

Hyderguda 4 4

Barakatpura 4 4

Nampally 4 4

Total 36 36

Vijaywada-II

LTU (5) 7 7

Benz Circle 7 7

Autonagar 7 7

Suryarao Pet 7 7

Sitarampuram 7 7

Vuyyuru 7 7

Total 42 42

Charminar

LTU (4) 9 7

Malakpet 9 9

Afzalganj 9 9

Begum Bazaar 9 9

Total 36 34

Visakhapatnam

Daba Garden 6 6

Anakapalli 6 6

Suryabagh 6 6

China Waltair 6 6

Dwarkanagar 6 6

Narisipatnam 6 6

Gajuwaka 6 6

Total 42 42

Table 3: Location and group wise frequency

Location Online Manual Total

Total

309 301 610

100.0% 100.0% 100.0%

309 301 610

100.0% 100.0% 100.0%



99


SECTION B: Dealer Profile

Table 4: Constitution of enterprise

Constitution of enterprise Online Manual Total

Proprietor 254 253 507

82.2% 84.1% 83.1%

Partnership19 13 32

6.1% 4.3% 5.2%

Private Limited Company36 35 71

11.7% 11.6% 11.6%

Total 309 301 610

100.0% 100.0% 100.0%

Table 5: Type of business

Type of business Online Manual Total

Manufacture53 41 94

17.2% 13.6% 15.4%

Wholesale159 155 314

51.5% 51.5% 51.5%

Retail68 66 134

22.0% 21.9% 22.0%

Export3 4 7

1.0% 1.3% 1.1%

Hire purchase1 2 3

3% .7% .5%

Work contract16 22 38

5.2% 7.3% 6.2%

Leasing.0 1 1

.0% .3% .2%

Hotels5 4 9

1.6% 1.3% 1.5%

Food Drink 4 6 10

1.3% 2.0% 1.6%

Total309 301 610

100.0% 100.0% 100.0%



100


Table 6: VAT registration

Registered for VAT Online Manual Total

Yes 309 301 610

100.0% 100.0% 100.0%

Total 309 301 610

100.0% 100.0% 100.0%

Table 7: CST registration

Registered for CST Online Manual Total

Yes 78 51 129

25.2% 16.9% 21.1%

No231 250 481

74.8% 83.1% 78.9%

Total309 301 610

100.0% 100.0% 100.0%

Table 8: Mode of maintenance of books of accounts

Mode in which Books of Accounts are

maintained within the organization

Online Manual Total

Manual

4 9 13

1.3% 3.0% 2.1%

Computerized305 292 597

98.7% 97.0% 97.9%

Total309 301 610

100.0% 100.0% 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

Online Manual Total

1

121 131 252

39.2% 43.5% 41.3%

2128 124 252

41.4% 41.2% 41.3%

342 32 74

13.6% 10.6% 12.1%

417 11 28

5.5% 3.7% 4.6%

51 3 4

.3% 1.0% .7%

Total309 301 610

100.0% 100.0% 100.0%



101


SECTION C: Awareness and Usage of Online Services

Table 10: Awareness on online services

Aware of online services of CTD Online Manual Total

Yes309 206 515

100.0% 68.4% 84.4%

No0 95 95

.0% 31.6% 15.6%

Total 309 301 610

100.0% 100.0% 100.0%

Table 11: First source of awareness

First source of awareness about online services Online Manual Total

Newspaper 71 55 126

23.0% 26.7% 24.5%

Television36 11 47

11.7% 5.3% 9.1%

Other Dealers63 43 106

20.4% 20.9% 20.6%

CTPs31 26 57

10.0% 12.6% 11.1%

Commercial Taxes Department Of ficial108 71 179

35.0% 34.5% 34.8%

Total 309 206 515

100.0% 100.0% 100.0%


Online services of CTD Online Manual Total

Application for Registration234 115 349

75.7% 55.8%

Application for issue of forms287 162 449

92.9% 78.6%

Filing Returns171 149 320

55.3% 72.3%

Information Dissemination195 18 213

63.1% 8.7%

Others4 0 4

1.3% .0%

Total 309 206 515



102


Table 13: Usage of online services

Used any of the online services provided by CTD Online Manual Total

Yes309 0 309

100.0% .0% 60.0%

No0 206 206

.0% 100.0% 40.0%

Total309 206 515

100.0% 100.0% 100.0%

Table 14: Reasons for using online services

Reasons for using e-services Online Total

Online process is faste 233 233

75.4%

Online process is more secure88 88

28.5%

Fewer errors in online process107 107

34.6%

Fewer visits to commercial taxes department92 92

29.8%

Online process is more transparent94 94

30.4%

It is mandatory7 7

2.3%

Total 309 309

Table 15: Reasons for not using online services

Reasons for not using e-services Manual Total

Do not have skills to use online services48 48

23.3%

Do not have access to hardware/softwar 4 4

1.9%

Do not have access to internet8 8

3.9%

Unreliable power situation9 9

4.4%

Online process is prone to errors76 76

36.9%

Online process is not secure78 78

37.9%

Online process is slow57 57

27.7%

Have to submit hard copy to of fice101 101

49.0%

Total 206 206



103


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 Online Manual Total

Obtaining statutory forms309 301 610

100.0% 100.0% 100.0%

Total309 301 610

100.0% 100.0% 100.0%

Table 17: Time and cost of Filing of Obtaining Statutory Form

Obtaining Statutory Forms Manual Computerized Change

(C-M)

Significance

Time and Cost of Availing Services From Commercial Taxes Department

Number of trips 1 0 -1 **

N 301 309

S.E. .000 .000

Mode 1 0

Comment: None of the online users visited CTD to obtain statutory forms. Clearly, online service has helpeddealers in terms of reducing trips to CTD.

Waiting time (Minutes) 22.7 NA

N 301

S.E. .509

Mode 20Travel cost (INR) 42.99 NA

N 301

S.E. .958

Mode 40

Travel time (Minutes) 42.90 NA

N 301

S.E. 1.284

Mode 40

Number of times user had to log-in to availonline service

NA 1.03

N 309

S.E. .011

Mode 1

Total time taken to complete transaction Online(Minutes)

NA 21.34

N 309

S.E. .407

Mode 20

Amount spent as salary/wages on total time spentin availing service (INR)

26.75 9.67 -17.078 **

N 301 309

S.E. .721 .297

Mode 19 8



104


Obtaining Statutory Forms Manual Computerized Change (C-M) Significance

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) .000 .000

N 301 309

S.E. .000 .000

Mode .000 .000

Service charge paid to Tax Consultant for

facilitating service from CTD Of fice (INR).000 .000

N 301 309

S.E. .000 .000

Mode .000 .000

Amount paid as bribe (INR) .000 .000 N 301 309

S.E. .000 .000

Mode .000 .000

Total payment made (INR) .000 .000

N 301 309

S.E. .000 .000

Mode .000 .000

Total elapsed time in availing service (Hours) 1.0946 76.6146 75.52001 **

N 301 309

S.E. .02456 3.26583

Mode 1.17 48.33

Comment: The data shows that the time taken for availing service is significantly 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 Online Manual Total

No, it was done completely in-house309 300 609

100.0% 99.7% 99.8%

Yes, it was partially done by CTP0 1 1

.0% .3% .2%

Total309 301 610

100.0% 100.0% 100.0%

Table 19: Waiting time for availing service

Waiting excessively for availing service in any of the trips Manual Total

Yes23 23

7.6% 7.6%

No278 278

92.4% 92.4%

Total 301 301

100.0% 100.0%



105


Table 20: Excessive waiting time for availing service

Reasons for excessive wait Manual Total

Long queue22 22

95.7% 95.7%

Too many applicants at of fice1 1

4.3% 4.3%

Total23 23

100.0% 100.0%

Table 21: Number of times user had to log-in for availing service

Number of times log-in to avail online service Online Total

1 300 30097.1% 97.1%

28 8

2.6% 2.6%

31 1

.3% .3%

Total309 309

100.0% 100.0%


Reason for log-in more than once Online Total

Service was not available as server was slow9 9

100.0% 100.0%

Total9 9

100.0% 100.0%

Table 23: Time taken to complete online transaction

Time taken to complete online transaction was excessive Online Total

Yes7 7

2.3% 2.3%

No302 302

97.7% 97.7%

Total309 309

100.0% 100.0%


Reasons for excessive time in online transactions Online Total

Server is slow7 7

100.0% 100.0%

Total7 7

100.0% 100.0%



106


Table 25: Bribe paid

Bribe directly to Of ficials Online Manual Total

No

309 301 610

100.0% 100.0% 100.0%

Total309 301 610

100.0% 100.0% 100.0%

Time and Cost of Availing Services from Commercial Taxes Department (Filing Returns)


Services Availed in Last 90 Days Online Manual Total

Filing returns100 205 305

32.4% 68.1% 50.0%


10.0% 31.9% 20.8%

Seeking information178 0 178

57.6% .0% 29.2%

Total309 301 610

100.0% 100.0% 100.0%

Table 27: Time and cost of Filing of Returns


Time and Cost of Preparation of Documents

for Filing of Returns

Man-hours were spent in compiling data 1.5249 1.5596 .03472 NS

N 205 100

S.E. .04565 .6510

Mode 1.50 2.0

Man-hours were spent for data entry in online

template

NA .7015

N 100

S.E. .03632

Mode .50

Total man-hours for preparation of documents 1.5205 2.2611 .74061 **

N 205 100

S.E. .04610 .08449

Mode 1.50 1.50

Comment: Total man-hours spent in preparation of documents are significantly higher for online dealers.

This is because online dealers have to enter data in online template.

Salary/wages for preparation of documents

(INR)

41.68 64.88 23.197 **

N 205 100



107



S.E. 2.503 3.876

Mode 31 31

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)

57.25 62.01 4.761 NS

N 205 100

S.E. 1.517 4.727

Mode 40 60

Cost of access to Internet (INR) NA 21.39

N 100

S.E. 1.159

Mode 20


Cost of Statutory Forms and other Forms –

including courier charges (INR)

273.63 271.47 -2.159 **

N 205 100

S.E. .349 .449

Mode 270 270

Comment: Manual users have spent significantly 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.


preparation of documents(INR)

396.59 395.45 -1.135 NS

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 isn’t any significant difference between the

two modes of service delivery.


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 of fice.

Waiting time (Minutes) 31.32 37.19 5.873 **

N 205 100

S.E. .910 1.291

Mode 25 35



108



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.

Travel cost (INR) 43.36 37.16 -6.201 **

N 205 100

S.E. 1.151 1.737

Mode 40 40

Travel time (Minutes) 43.00 39.52 -3.475 NS

N 205 100

S.E. 1.880 1.452

Mode 30

30

Number of times user had to log-in to avail

online service

NA 1.07

N 100

S.E. .026

Mode 1

Total time taken to complete transaction Online

(Minutes)

NA 35.40

N 100

S.E. 1.171

Mode 35

Amount spent as salary/wages on total time

spent in availing service (INR)

30.79 51.54 20.755 **

N 205 100

S.E. 1.059 1.851

Mode 29 36

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 205 100

S.E. 0 0

Mode 0 0


facilitating service from CTD Of fice (INR)

0 0

N 205 100

S.E. 0 0

Mode 0 0

Amount paid as bribe (INR) 0 0

N 205 100

S.E. 0 0

Mode 0 0

Total payment made (INR) 0 0



109



N 205 100

S.E. 0 0

Mode 0 0

Time in availing service through Manual

process (Hours).5173 .6201 .10283 **

N 205 100

S.E. .01519 .02191

Mode .41 .58

Time in availing service through Online

process (Hours) NA .5895

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 significantly higher in the case of online users. This is because

online users have to submit hard copy of returns after filing returns online.

OTHER TABLES: Time and Cost of Filing Returns


Processes related to the service outsourced? Online Manual Total


25.0% 27.3% 26.6%


75.0% 72.7% 73.4%

Total100 205 305

100.0% 100.0% 100.0%


Reasons for depending on CTP Online Manual Total

Due to lack of suf ficient knowledge on processes26 33 59

34.7% 22.1%

To ensure accuracy of data given to department52 124 176

69.3% 83.2%

Want to avoid interface with Dep. of ficials23 61 84

30.7% 40.9%

Do not want to spent time on this5 11 16

6.7% 7.4%

Total 75 149 224



110



Waiting excessively for availing service in any of the trips Online Manual Total

Yes17 43 60

17.0% 21.0% 19.7%

No83 162 245

83.0% 79.0% 80.3%

Total100 205 305

100.0% 100.0% 100.0%


Reasons for excessive wait Online Manual Total

Long queue9 30 39

52.9% 69.8% 65.0%

Of ficials of CTD are inef ficient (slow in processing)2 7 9

11.8% 16.3% 15.0%

Processes are too complex & take lot of time to complete4 1 5

23.5% 2.3% 8.3%

Too many applicants at of fice2 4 6

11.8% 9.3% 10.0%

Power breakdown0 1 1

.0% 2.3% 1.7%Total 17 43 60

100.0% 100.0% 100.0%


Number of times log-in to avail online service Online Total

193 93

93.0% 93.0%

27 7

7.0% 7.0%

Total 100 100100.0% 100.0%


Reason for log-in more than once Online Total


100.0% 100.0%

Total7 7

100.0% 100.0%



111



Time taken to complete online transaction was excessive Online Total

Yes13 13

13.0% 13.0%

No87 87

87.0% 87.0%

Total100 100

100.0% 100.0%


Reasons for excessive time in online transactions Online Total

Server is slow11 11

84.6% 84.6%

Processes are complex and time consuming1 1

7.7% 7.7%

Others1 1

7.7% 7.7%

Total13 13

100.0% 100.0%


Paid bribe directly toOf ficials?

Online Manual Total

No

100 205 305

100.0% 100.0% 100.0%

Total100 205 305

100.0% 100.0% 100.0%

SECTION E: Overall Assessment

Table 37: Overall Assessment

Overall Assessment Computerized Manual Change (C-M) Sig.

Time and effort in filing returns 4.06 3.83 0.231 **

N 117 268

S.E. 0.063 0.039

Cost incurred in filing returns 3.95 3.76 0.19 **

N 118 266

S.E. 0.075 0.046

Design and layout of forms (templates in

case of online mode)3.81 3.76 0.046 NS

N 304 25



112



S.E. 0.038 0.105

Time and effort in procuring statutory

forms3.91 3.72 0.185 **

N 309 301

S.E. 0.04 0.036

Cost incurred in procuring statutory forms 3.63 3.42 0.208 **

N 309 300

S.E. 0.043 0.04

Overall quality of service 3.87 3.88 -0.006 NS

N 309 300

S.E. 0.044 0.043

Overall quality of governance 3.92 4.07 -0.151 **

N 309 301

S.E. 0.048 0.046

Overall experience of availing service

from CTD3.73 3.62 0.11 NS

N 309 301

S.E. 0.046 0.043

Accuracy of transactions 3.84 3.83 0.011 NS

N 309 301

S.E. 0.047 0.041

Confi

dentiality and security of data 3.57 3.78 -0.211 ** N 309 301

S.E. 0.049 0.044

Predictability of outcome 3.77 3.75 0.026 NS

N 309 301

S.E. 0.046 0.046

Time and effort in accessing information 3.79 3.76 0.029 NS

N 309 301

S.E. 0.044 0.044

Accountability of Of ficials 3.67 3.88 -0.217 **

N 309 301

S.E 0.05 0.049Clarity and simplicity of processes and

procedures3.76 3.77 -0.007 NS

N 309 301

S.E 0.05 0.046

Knowledge of Of ficials 3.94 3.98 -0.041 NS

N 309 301

S.E. 0.048 0.047

Transparency in CTD 3.76 3.77 -0.008 NS

N 308 301

S.E. 0.045 0.046

Level of corruption 3.81 3.74 0.067 NS



113



N 309 295

S.E. 0.044 0.044

Ability to influence policies, rules and

procedures through feedback 3.87 3.87 0 NS

N 308 300

S.E. 0.042 0.042

Problem resolution 3.74 3.71 0.029 NS

N 308 301

S.E. 0.047 0.048

Courtesy and helpfulness of Of ficials 3.79 3.83 -0.038 NS

N 309 301

S.E. 0.047 0.043

Convenience of working hours 3.92 3.89 0.035 NS

N 308 301

S.E. 0.045 0.043

Complaint handling mechanism 3.72 3.82 -0.101 NS

N 309 299

S.E. 0.048 0.049

Convenience of location of of fice 4.28 4.4 -0.116 *

N 308 301

S.E. 0.049 0.043

Queuing system at CTD Of fice 3.8 3.68 0.115 *

N 309 301

S.E. 0.048 0.048

Dependence on CTPs 4.09 4.14 -0.047 NS

N 302 300

S.E. 0.043 0.04

Adherence to Citizen Charter 3.72 3.72 0.005 NS

N 309 297

S.E. 0.048 0.045

Durability and legibility of certificates/

receipts4 4.06 -0.063 NS

N 309 301

S.E. 0.044 0.043



114


Composite Score

Table 38: Composite Score

Respondents who Considered

Factor to be Among Three

Most Important

Average of Individual Scores Improvement

Column No. a b c d e F

Factor Number Percentage

(Column a/

Total of

Column a)

Computerized Manual Difference

(Column c –

Column d)

Weighted

Score

(Column e X

Column b)

Time and effort in filing returns 14 .8% 4.06 3.83 0.231 0.001848

Cost incurred in filing returns 35 1.9% 3.95 3.76 0.19 0.00361

Design and layout of forms(templates in case of online mode)

38 2.1% 3.81 3.76 0.046 0.000966

Time and effort in procuring

statutory forms36 2.0% 3.91 3.72 0.185 0.0037

Cost incurred in procuring

statutory forms131 7.2% 3.63 3.42 0.208 0.014976

Overall quality of service 43 2.3% 3.87 3.88 -0.006 -0.00014

Overall quality of governance 55 3.0% 3.92 4.07 -0.151 -0.00453

Overall experience of availing

service from CTD93 5.1% 3.73 3.62 0.11 0.00561

Accuracy of transactions 89 4.9% 3.84 3.83 0.011 0.000539

Confidentiality and security of

data

101 5.5% 3.57 3.78 -0.211 -0.01161

Predictability of outcome 116 6.3% 3.77 3.75 0.026 0.001638

Time and effort in accessing

information79 4.3% 3.79 3.76 0.029 0.001247

Accountability of Of ficials 104 5.7% 3.67 3.88 -0.217 -0.01237

Clarity and simplicity of

processes and procedures116 6.3% 3.76 3.77 -0.007 -0.00044

Knowledge of Of ficials 59 3.2% 3.94 3.98 -0.041 -0.00131

Transparency in CTD 119 6.5% 3.76 3.77 -0.008 -0.00052

Level of corruption 91 5.0% 3.81 3.74 0.067 0.00335

Ability to influence policies, rules

and procedures through feedback 48 2.6% 3.87 3.87 0 0

Problem resolution 114 6.2% 3.74 3.71 0.029 0.001798Courtesy and helpfulness of

Of ficials75 4.1% 3.79 3.83 -0.038 -0.00156

Convenience of working hours 32 1.7% 3.92 3.89 0.035 0.000595

Complaint handling mechanism 78 4.3% 3.72 3.82 -0.101 -0.00434

Convenience of location of of fice 7 .4% 4.28 4.4 -0.116 -0.00046

Queuing system at CTD Of fice 70 3.8% 3.8 3.68 0.115 0.00437

Dependence on CTPs 4 .2% 4.09 4.14 -0.047 -9.4E-05

Adherence to Citizen Charter 60 3.3% 3.72 3.72 0.005 0.000165

Durability and legibility of

certificates/receipts23 1.3% 4 4.06 -0.063 -0.00082

Total (Sum of column) 1830 100.0% 0.006219



115


SECTION F: Suggestions

Table 39: Suggestions for improving online services

Suggestions for improving online services

(Multiple Responses)N Percent Percent of Cases

Eliminate practice of submission of hard copy of CTD 587 52.6% 96.2%

Server speed should be increased 230 20.6% 37.7%

Tax consultants should be allowed to make E-payment

on behalf of their clients – through Consultant’s

Internet Banking A/C

3 .3% .5%

Maintenance of website should not be done during

of fice hour 208 18.6% 34.1%

CTD of ficials should be given adequate training,

so that they can handle queries on online services

ef ficiently

74 6.6% 12.1%

Involve more banks in e-payment 13 1.2% 2.1%

Changes in processes/templates should be

immediately communicated to dealers2 .2% .4%

Total 1117 100.0%

Table 40: Suggestions for increase usage of online services

Suggestions to increase usage of e-services

(Multiple Responses) N Percent Percent of Cases

Awareness campaigns on online services for dealers 588 52.9% 96.4%

Establishment of common service centres to facilitate

e-services to all dealers177 15.9% 29.0%

Online processes should be made much more user

friendly and simple347 31.2% 56.9%

Total 1112 100.0%



116


Annexure – G

Andhra Pradesh: CTPs Using Optional Online Services




Treatment (Online) 101 49.8

Comparison (Manual) 102 50.2

Total 203 100.0


Division Circle Treatment

(Online)

Comparison (Manual)

Punjagutta

LTU 6 8

Vengalrao Nagar 3 1

Srinagar Colony 3 2

Punjagutta 13 5

Khairatabad 5 2

Somajiguda 2 3

Sanatnagar 2 4

Jubilee Hills 6 4

Total 40 29

Secunderabad

LTU (2) 6 3

Tarnaka 4 1

General Bazaar Circle 0 3

Musheerabad 0 4

Mahankali Street 0 2

R P Road 1 5

Gandhinagar 3 4

Vidyanagar 3

Total 14 25

Abids

LTU (3) 2 3

Basheerbagh 2 4

M J Market 3

Narayanaguda 1 2

Abids 7 5

Sultan Bazaar 3 1

Hyderguda 3 1

Nampally 1

Total 19 19



117



(Online)

Comparison (Manual)

Vijaywada-II

LTU (5) 2 2

Benz Circle 1 2

Autonagar 2 2

Suryarao Pet 2 2

Sitarampuram 2 2

Vuyyuru 2 2

Total 11 12

Charminar

LTU (4) 1

Malakpet 2 2

Total 3 2

Visakhapatnam

Afzalganj 1

Daba Garden 2 2

Anakapalli 2 2

Suryabagh 2 2

China Waltair 2 2

Dwarkanagar 2 2

Narisipatnam 2 2

Gajuwaka 2 2

Total 14 15

SECTION B: CTP Profile

Table 4: Education of CTP

Educational qualification of Tax Consultant Treatment (Online) Comparison (Manual) Total

CA62 49 111

61.4% 48.0% 54.7%

LLB38 48 86

37.6% 47.1% 42.4%

B Com1 5 6

1.0% 4.9% 3.0%

Total101 102 203

100.0% 100.0% 100.0%

Table 5: Years of experience of CTP

Years of Experience as Tax Consultant Treatment (Online) Comparison(Manual) Total

1 - 527 3 30

26.7% 3.0% 14.9%

6 - 1057 55 112

56.4% 53.9% 55.2%

11 - 1513 37 50

12.9% 36.3% 24.6%

16 - 254 7 11

4.0% 7.0% 5.0%

Total101 102 203

100.0% 100.0% 100.0%



118



Number of staff in the organization involved in

activities related to Commercial Taxes

Treatment (Online) Comparison (Manual) Total

150 39 89

49.5% 38.2% 43.8%

238 48 86

37.6% 47.1% 42.4%

38 9 17

7.9% 8.8% 8.4%

45 3 8

5.0% 2.9% 3.9%

5

0 3 3

.0% 2.9% 1.5%

Total101 102 203

100.0% 100.0% 100.0%

Table 7: Computer literacy of CTP

Tax Consultant computer literate Treatment (Online) Comparison (Manual) Total

Yes101 98 199

100.0% 96.1% 98.0%

No0 4 4

.0% 3.9% 2.0%

Total101 102 203

100.0% 100.0% 100.0%

Table 8: Experience in using online services

Tax Consultant used any online e-Gov. service Treatment (Online) Comparison (Manual) Total

Yes101 30 131

100.0% 30.6% 65.8%

No0 68 68

.0% 69.4% 34.2%

Total101 98 199

100.0% 100.0% 100.0%

SECTION C: Awareness And Usage of Online Services


Aware about online services provided by

Commercial Taxes Department


Yes101 100 201

100.0% 98.0% 99.0%

No0 2 2

.0% 2.0% 1.0%

Total

101 102 203

100.0% 100.0% 100.0%



119



First source of awareness about online services Treatment

(Online)

Comparison

(Manual)

Total

Newspaper 20 11 31

19.8% 11.0% 15.4%

Television10 14 24

9.9% 14.0% 11.9%

Dealers7 9 16

6.9% 9.0% 8.0%

Other CTP20 18 38

19.8% 18.0% 18.9%

Commercial Tax Dep. Of ficial44 48 92

43.6% 48.0% 45.8%

Total101 100 201

100.0% 100.0% 100.0%


e-Services of CTD Treatment

(Online)

Comparison

(Manual)

Total


96.0% 71.0%

Application for issue of statutory forms100 92 192

99.0% 92.0%


98.0% 73.0%


77.2% 20.0%

Total 101 100 201


Used any e-Services provided by CTD Treatment

(Online)

Comparison

(Manu al)

Total

Yes101 0 101

100.0% .0% 50.2%

No0 100 100

.0% 100.0% 49.8%

Total101 100 201

100.0% 100.0% 100.0%



120



Reasons for using e-Services Treatment (Online) Total

Online process is faster 51 51

50.5%


24.8%


58.4%


29.7%


41.6%

It is mandatory3 3

3.0%

Total 101 101


Reasons for not using e-Services Comparison (Manual) Total


15.0%

Do not have access to hardware/software 12 1212.0%


16.0%


44.0%


42.0%


37.0%


48.0%

Have to submit hard copy to of fice40 40

40.0%

Total 100 100



121


SECTION D: Time and Effort and Costs of Availing Services


Services availed in last 90 days Treatment (Online) Comparison

(Manual)

Total

Application of statutory forms101 102 203

100.0% 100.0% 100.0%

Total101 102 203

100.0% 100.0% 100.0%

Table 16: Time and cost of Filing of Obtaining Statutory Forms

Obtaining Statutory Forms Computerized Manual Change

(C-M)

Significance


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

service

1.04 NA

N 101

S.E. 0.02 .

Mode 1


(Minutes)

20.35 NA

N 101

S.E. 0.672 .

Mode 20



122


Obtaining Statutory Forms Computerized Manual Change

(C-M)

Significance

Amount spent as salary/wages on total time spent

in availing service (INR)8.16 26.64

-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


N 101 102

S.E. 0 0

Mode 0 0


N 101 102

S.E. 0 0

Mode 0 0


N 101 102

S.E. 0 0

Mode 0 0


N 101 102S.E. 6.433 .03431

Mode 48.41 1.08

Comment: The data shows that the time taken for availing service is significantly 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


Had to wait excessively for availing service in any of the trips Comparison

(Manual)

Total

Yes26 26

25.5% 25.5%

No76 76

74.5% 74.5%

Total102 102

100.0% 100.0%



123



Reasons for excessive wait Comparison (Manual) Total

Long queue25 25

96.2% 96.2%

Processes are too complex & take lot of time to complete1 1

3.8% 3.8%

Total26 26

100.0% 100.0%


Number of times log-in to avail online service Treatment (Online) Total

197 97

96.0% 96.0%

24 4

4.0% 4.0%

Total101 101

100.0% 100.0%


Reasons to log-in more than once Treatment (Online) Total

Service was not available as server was slow

4 4

100.0% 100.0%

Total4 4

100.0% 100.0%


Time taken to complete online transaction was excessive Treatment (Online) Total

Yes6 6

5.9% 5.9%

No95 95

94.1% 94.1%

Total101 101

100.0% 100.0%


Reasons for excessive time Treatment (Online) Total

Server is slow6 6

100.0% 100.0%

Total6 6

100.0% 100.0%



124



Paid a bribe directly to of ficials Treatment

(Online)

Comparison

(Manual)

Total

Yes0 5 5

.0% 4.9% 2.5%

No101 97 198

100.0% 95.1% 97.5%

Total101 102 203

100.0% 100.0% 100.0%

Table 24: Purpose of bribes

Purpose of the bribe Comparison

(Manual)

Total

To influence functionaries to manipulate records in your favor 5 5

100.0% 100.0%

Total5 5

100.0% 100.0%


Services availed in last 90 days Online Manual Total

Filing Returns 31 57 88

Application for Registration 21 45 66

Total 52 102 154


Filing Returns Computerized Manual Change

(C-M)

Significance

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 significantly higher for online dealers. This is

because online dealers have to enter data in online template.



125



(C-M)

Significance

Salary/wages for preparation of documents (INR) 57.55 39.81 17.741 **

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

courier charges (INR)

272.84 257.18 15.663 NS

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 9.403Mode 378.00 362.00

Comment: Total cost of preparation of documents is significantly higher in the case of online users. This is mainly

because of data entry.


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 of fice.

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



126



(C-M)

Significance

Mode 30.00 50.00

Number of times user had to log-in to avail onlineservice

1.13 NA

N 31

S.E. 0.061 .

Mode 1.00


33.71 NA

N 31

S.E. 1.781 .

Mode 35.00

Amount spent as salary/wages on total time spent inavailing service (INR)

40.74 31.46 9.286 **

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 theyhave to make at least one trip and also spent time for online transaction.


N 31 57

S.E. 0 0

Mode 0.00 0.00


N 31 57

S.E. 0 0

Mode 0.00 0.00


N 31 57

S.E. 0 0

Mode 0.00 0.00

Time in availing service through Manual process(Hours)

0.3213 0.5396 -0.21836 **

N 31 57

S.E. 0.02226 0.03327

Mode 0.33 0.50

Time in availing service through Online process(Hours)

0.5587 NA

N 31

S.E. 0.0298

Mode 0.58


N 31 57

S.E. 0.03564 0.03327

Mode 0.74 0.50

Comment: Total elapsed time for availing service is significantly higher in the case of online users. This is because

online users have to submit hard copy of returns afterfi

ling returns online.



127




Had to wait excessively for availing service in any of the trips Treatment

(Online)

Comparison

(Manual)

Total

Yes3 8 11

9.7% 14.0% 12.5%

No28 49 77

90.3% 86.0% 87.5%

Total31 57 88

100.0% 100.0% 100.0%


Reasons for excessive wait Treatment

(Online)

Comparison

(Manual)

Total

Long queue3 5 8

100.0% 62.5% 72.7%

Of ficials of CTD are inef ficient (slow in processing)0 1 1

.0% 12.5% 9.1%


.0% 12.5% 9.1%

Badly managed queue0 1 1

.0% 12.5% 9.1%

Total 3 8 11

100.0% 100.0% 100.0%


Number of times log-in to avail online service Treatment

(Online)

Total

127 27

87.1% 87.1%

24 4

12.9% 12.9%

Total 31 31100.0% 100.0%


Reasons to log-in more than once Treatment

(Online)

Total


50.0% 50.0%

Templates had changed, therefore it had to be downloaded fir 2 2

50.0% 50.0%

Total 4 4

100.0% 100.0%



128



Taken to complete online transaction was excessive Treatment (Online) Total

Yes4 4

12.9% 12.9%

No27 27

87.1% 87.1%

Total31 31

100.0% 100.0%


Reasons for excessive time Treatment (Online) Total

Server is slow3 3

75.0% 75.0%

Errors occur while uploading template1 1

25.0% 25.0%

Total4 4

100.0% 100.0%


Paid a bribe directly to of fi

cials Treatment(Online) Comparison(Manual) Total

Yes1 1 2

3.2% 1.8% 2.3%

No30 56 86

96.8% 98.2% 97.7%

Total 31 57 88

100.0% 100.0% 100.0%


Purpose of bribes Treatment

(Online)

Comparison

(Man ual)

Total

To influence functionaries to manipulate records in your favor 1 1 2

100.0% 100.0% 100.0%

Total1 1 2

100.0% 100.0% 100.0%



129




Overall assessment Computerized Manual Change (C-M) Significance

Time and effort in filing returns 3.78 3.98 -0.205 NS

N 40 101

S.E. 0.104 0.053

Cost incurred in filing returns 3.8 3.59 0.211 *

N 41 101

S.E. 0.106 0.069

Design and layout of forms (templates in case

of online

3.91 3.79 0.122 NS

N 98 14

S.E. 0.067 0.114

Time and effort in procuring statutory forms 3.9 3.98 -0.079 NS

N 101 102

S.E. 0.046 0.056

Cost incurred in procuring statutory forms 3.64 3.82 -0.18 *

N 101 102

S.E. 0.062 0.078

Overall quality of service 4.01 3.88 0.128 NS

N 101 102

S.E. 0.07 0.07

Overall quality of governance 3.75 3.72 0.037 NS

N 101 102

S.E. 0.062 0.072

Overall experience of availing service from

CTD

3.84 3.77 0.067 NS

N 101 102

S.E. 0.064 0.085

Accuracy of transactions 3.76 3.85 -0.088 NS

N 101 100

S.E. 0.073 0.085

Confidentiality and security of data 3.88 3.73 0.156 NS

N 101 102

S.E. 0.079 0.077

Predictability of outcome 3.91 3.8 0.107 NS

N 101 102

S.E. 0.085 0.08

Time and effort in accessing information 3.82 3.84 -0.02 NS

N 101 101

S.E. 0.076 0.088

Accountability of of ficials 4.11 3.77 0.335 **

N 100 102

S.E 0.075 0.083



130


Overall assessment Computerized Manual Change (C-M) Significance

Clarity and simplicity of processes and procedures

3.69 3.97 -0.278 **

N 101 102

S.E 0.071 0.083

Knowledge of of ficials 3.98 3.78 0.196 *

N 101 102

S.E. 0.07 0.083

Transparency in CTD 3.78 3.99 -0.21 *

N 100 99

S.E. 0.072 0.078

Level of corruption 3.63 3.85 -0.219 *

N 101 102S.E. 0.071 0.073

Ability to influence policies, rules and procedures through feedback

3.86 3.75 0.106 NS

N 101 102

S.E. 0.056 0.066

Problem resolution 3.68 3.69 -0.003 NS

N 101 102

S.E. 0.074 0.079

Courtesy and helpfulness of Of ficials 3.74 3.81 -0.071 NS

N 101 102

S.E. 0.07 0.076Convenience of working hours 3.85 3.86 -0.011 NS

N 101 102

S.E. 0.062 0.071

Complaint handling mechanism (includingservice provide

3.97 3.84 0.127 NS

N 101 102

S.E. 0.09 0.076

Convenience of location of of fice 4.56 4.25 0.319 **

N 101 102

S.E. 0.057 0.073

Queuing system at CTD Of fice 3.85 3.47 0.381 **

N 101 102

S.E. 0.075 0.092

Durability and legibility of certificates/receipts CTP

4.09 3.87 0.217 **

N 101 102

S.E. 0.061 0.084

Adherence to Citizen Charter 3.67 3.85 -0.18 *

N 101 102

S.E. 0.068 0.082

Dependence on of ficials 3.81 3.72 0.096 NS

N 101 102

S.E. 0.073 0.079



131


Composite Score


Respondents who

Considered Factor to

be Among Three Most

Important

Average of Individual

Scores

Improvement



(Column

a/Total of

Column a)

Comput-

erized

Manual Difference

(Column c –

Column d)

Weighted

Score

(Column e*

Column b)

Time and effort in filing returns 8 1.3% 3.78 3.98 -0.205 -0.00267

Cost incurred in filing returns 21 3.5% 3.8 3.59 0.211 0.007385Design and layout of forms (tem-

plates in case of online

25 4.1% 3.91 3.79 0.122 0.005002

Time and effort in procuring statu-

tory forms

18 3.0% 3.9 3.98 -0.079 -0.00237

Cost incurred in procuring statu-

tory forms

43 7.1% 3.64 3.82 -0.18 -0.01278

Overall quality of service 12 2.0% 4.01 3.88 0.128 0.00256

Overall quality of governance 13 2.1% 3.75 3.72 0.037 0.000777

Overall experience of availing ser-

vice from CTD

21 3.5% 3.84 3.77 0.067 0.002345

Accuracy of transactions 37 6.1% 3.76 3.85 -0.088 -0.00537


data

21 3.5% 3.88 3.73 0.156 0.00546


Accountability of of ficials 22 3.6% 4.11 3.77 0.335 0.01206

Clarity and simplicity of processes

and procedures

34 5.6% 3.69 3.97 -0.278 -0.01557

Knowledge of of ficials 19 3.1% 3.98 3.78 0.196 0.006076


Level of corruption 22 3.6% 3.63 3.85 -0.219 -0.00788


and procedures through feedback

41 6.8% 3.86 3.75 0.106 0.007208

Problem resolution 26 4.3% 3.68 3.69 -0.003 -0.00013Courtesy and helpfulness of Of-

ficials

38 6.3% 3.74 3.81 -0.071 -0.00447

Convenience of working hours 23 3.8% 3.85 3.86 -0.011 -0.00042

Complaint handling mechanism

(including service provide

11 1.8% 3.97 3.84 0.127 0.002286

Convenience of location of of fice 22 3.6% 4.56 4.25 0.319 0.011484

Queuing system at CTD Of fice 29 4.8% 3.85 3.47 0.381 0.018288

Durability and legibility of certifi-

cates/ receipts CTP

6 1.0% 4.09 3.87 0.217 0.00217

Adherence to Citizen Charter 18 3.0% 3.67 3.85 -0.18 -0.0054

Dependence on of ficials 13 2.1% 3.81 3.72 0.096 0.002016




132




Suggestions for improving online service

Responses Percent of Cases

N Percent N



Maintenance of website should not be done during of fice hour 21 4.6% 10.3%

CTD of ficials should be given adequate training, so that they can

handle queries on online services ef ficiently23 5.0% 11.3%

Provide templates (w.r.t. returns) that can perform data verification

of fline 82 17.9% 40.4%

Changes in processes/templates should be immediately

communicated to users33 7.2% 16.3%

Others 2 .4% 1.0%

Total 458 100.0%

Table 38: Suggestions for increasing usage of online services

Suggestions to increase use of e-service


N Percent N


Establishment of common service centres to facilitate e-services to all 108 26.9% 53.2%

Online processes should be made much more user friendly and simple 101 25.2% 49.8%

Total 401 100.0%



Chhattisgarh


2010



135

Acknowledgments



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


gratitude to them.

Our heart felt gratitude to all Field Supervisors and Investigators who carried out the survey.

Director, RDI



136

Table of Contents

1.0 Introduction ..............................................................................................................................139

2.0 Profile 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



137








138

Executive Summary

The Commercial Taxes Department of Chhattisgarh has introduced some online services for dealers.

Major services include e-filing 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).


schedules were used in the survey, which covered 806 users in three Divisions of Chhattisgarh. This

report summarizes major findings of this survey.


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 isn’t any

significant 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

office - 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 office. Total elapsed time

in availing service is significantly 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 Office.


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 significant impact – it has eliminated trips to Banks/Treasuries to make

payment (payment is made online) and significantly reduced total elapsed time in availing service.



139

Impact Assessment of Commercial Taxes Computerization 2010-Chhattisgarh

1.0 Introduction





Eleven empanelled Market Research agencies carried out surveys among end users across India,





Projects in Chhattisgarh.

The broad framework for this study has been developed by IIMA. RDI was primarily responsible for





Commercial Taxes Department (CTD) of Chhattisgarh has introduced many online services for

dealers including filing 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 five major

sections, each with specific objectives:


(CTPs).


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.






governance.

Suggestions: In this section we have captured suggestions of users on improving online services5.


________

1Electronic service delivery launch date: October 2006



140




(01.04.2009 to 31.07.2009)

Service

VAT (%) CST (%)

M O M O

Filing of returns299.92%

(80630)

0.08%

(68) NA NA

Application of statutory forms3 98.26%

(60472)

1.74%

(1054) NA NA

Information Dissemination* 99% 1% NA NA

Application of statutory and other forms* 99% 1% NA NA


Source: Commercial Taxes Department, Chhattisgarh



There were four major online services in Chhattisgarh in August 2009.1. Table 1 give details of

online services in the State and service wise percentage of users

All online services were voluntary – dealers could either use manual mode or online mode2.

according to their convenience

During pilot study we understood that many dealers in Chhattisgarh relied (either partially or3.

fully) on Commercial Taxes Practitioners (CTP) for availing services including registration, filing

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



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.

_________


3E-payment is optional for dealers.



141


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:

Services availed in last three months (90 days) and mode of service used (online/manual) – this is1.

needed to classify dealers and CTPs as control or treatment group




was interviewed instead of dealer

Address of CTP - in case CTP’s assistance was sought3.

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 field work are given in

Annexure E.


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.


Details of Users




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

find 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 access to hardware/software•

Do not have access to internet•




142



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 access to hardware/software•

Do not have access to internet•


Online process is slow•Have to submit hard copy to CTD (e-returns)•








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


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 weren’t sufficient responses

for them.

4.1 Filing Returns (Optional Online Service)

Dealers registered with the CTD are required to file returns periodically, monthly/ bi-monthly/quarterly/annually depending on turnover of dealer, in a prescribed format. Filing Returns has two

major components:




receipt of submission

Most dealers (manual and online) take help from CTPs for either one or both components mentioned





143



are given below:


Manual Online

Return documents are prepared manually1.

(using various forms such as VAT forms,

CST forms) in the format specified by the

department

Dealer submits the original return documents2.

to CTD. After verification of return documents by the clerk/CTI, the dealer receives a receipt

of submission

An office copy of the return documents is3.

maintained by the Dealer


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

2. Dealer compiles data as per the templates –

some dealers take a print out of the templateand fill it up manually


4. Template is uploaded and dealer receives an

acknowledgement from CTD

5. Dealer has to submit a hard copy of the return

(print out of template) to CTO Office and

receive a receipt of submission - receipt is

given without verification as the dealer has

already submitted return online





given in Tables 4 &5. Please refer Annexure F & G for details.


In this section we shall examine how online filing of returns has impacted dealers and CTPs –quantitative data obtained through the survey and qualitative data from filed observations shall be

used in conjunction for this purpose.



144





Dealer 1.8175 1.6623 -.15518 *

CTP .8767 .9629 .08625 NS

Dealers: Total man-hours spent by online dealers in preparation of documents are significantly 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 ofdocuments.


1.8175

1.6623

-0.15518

0.8767

0.9629

0.08625

-0.5

0

0.5

1

1.5

2

Dealers CTPs


____________

4This includes man-hours spent in compiling data and man-hours were spent for data entry in online template



145





Dealer 754.7480 716.1371 -38.6108 NS

CTP 42.7011 54.1165 11.41536 NS

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

documents.


-38.6108

716.1371754.748

11.41536

54.116542.7011

-100

0

100

200

300

400

500

600

700

800

Delers CTPs


____________

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



146






Dealer 1.05 1.02 -.024 NS

CTP 1.06 1.01 -.048 NS

Both manual and online users have to make at least one trip to CTD office. Therefore there is no

significant difference between the two modes w.r.t. number of trips for availing service.

Number of Trips

1.02

1.05

-0.024

1.06

1.01

-0.048

-0.2

0

0.2

0.4

0.6

0.8

1

1.2

Dealers CTPs




147



39.358335.1287

-4.22961

0.22765

36.262136.0345

-10

-5

0

5

10

15

20

25

30

35

40

45

Dealers CTPs


____________

6

Time spent in queue and transaction time at counter




Dealer 39.3583 35.1287 -4.22961 *

CTP 36.0345 36.2621 .22765 NS

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 significant



148





Dealer 24.37 56.63 32.258 **

CTP 19.49 26.00 6.506 **

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

32.258

56.63

24.37

6.506

26

19.49

0

10

20

30

40

50

60

Dealers CTPs


__________

7

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



149





Dealer 669.88 585.86 -84.025 NS

CTP .00 .00

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

__________


functionaries

Total Payment Made (INR)

-84.025

585.86

669.88

00 0

-200

-100

0

100

200

300

400

500

600

700

800

Dealers CTPS




150


Time in availing service through manual process

Table 10: Time in availing service through manual process


Dealer .6657 .5714 -.09438 **

CTP .6248 .5992 -.02560 NS


online, while that of manual users are scrutinized – hence the difference.

CTPs: There is no significant difference between the two modes.

Time in availing service through Manual process (Hours)

0.6657

0.5714

-0.09438

0.5992

0.6248

-0.0256

-0.2

-0.1

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

Dealers CTPs




151





Dealer .6677 .8059 .13817 **

CTP .6375 .8554 .21797 **

Total elapsed time is significantly 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

Office.


0.13817

0.8059

0.6677

0.21797

0.8554

0.6375

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

Dealers CTPs




152


4.2 Tax Payment

Dealers have to make periodic Tax Payments to CTD as per the tax calculated in the returns filed by

them.

Major difference between Manual and Online Tax Payment is given below:

Manual Online

Payment is accepted in Banks/Treasuries

Dealers have to fill challan (Banks/Treasuries) -

giving payment details

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



Dealers can make payment online through their

online Bank Accounts9. There is no need to visit

Bank/Treasury to make payment

e-forms are filled by dealers (giving paymentdetails) and after this the software leads user to

selected Bank’s gateway

After online payment, hard copy of e-challan is

provided through Bank’s 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 returnsand 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.

_______________

9The online account has to be in a Bank that is identified by CTD for the purpose of e-payment



153



Table 12: Total man-hours for preparation of documents 10

Tax Payment Manual Computerized Change (C-M) Significance

Dealer .9333 .6358 -.29756 **

CTP .4550 .3732 -.08176 NS

Dealers: Total man-hours for entering payment details (in challan/e-forms) are significantly less in

the case of online dealers.

CTPs: The difference between the two modes is not statistically significant.

_________

10

Man-hours spent in filling challan/e-forms


0.9333

0.6358

-0.29756

0.4550.3732

-0.08176

-0.4

-0.2

0

0.2

0.4

0.6

0.8

1

Dealers CTPs




154



5.23898

63.322

63.083

4.60442

24.513519.9091

0

10

20

30

40

50

60

70

Delers CTPs





Dealer 63.083 63.3220 5.23898 NS

CTP 19.9091 24.5135 4.60442 NS

In the case of Tax Payment dealers need to fill 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 significant difference between the two

modes.

_________

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



155


Number of trips to Bank/Treasury



Dealer 1.00 .00 -1 **

CTP 1.00 .00 -1 **

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 dealer’s 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.

Number of Trips

01

-1

10

-1

-1.5

-1

-0.5

0

0.5

1

1.5

Dealers CTPs




156



service

-9.748

5.61

15.36

-6.984

4.24

11.23

-15

-10

-5

0

5

10

15

20

Dealers CTPs


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)


Dealer 15.36 5.61 -9.748 **

CTP 11.23 4.24 -6.984 **

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.

_ ____

12Traveling time + waiting time + time for online transaction (man-hours spent X wage per man-hour)



157


Total payment Made



Dealer 32.05 24.51 -7.540 NS

CTP .00 .00 .00

There is no significant 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.


-7.54

24.51

32.05

00 0

-10

-5

0

5

10

15

20

25

30

35

Dealers CTPS




158



0.4326

0.2547

-0.1779

0.3843

0.2292

-0.15513

-0.3

-0.2

-0.1

0

0.1

0.2

0.3

0.4

0.5

Dealers CTPs





Dealer .4326 .2547 -.1779 **

CTP .3843 .2292 -.15513 **

Total elapsed time for availing service for online users is significantly lesser than that of manual users.

This is because online service has eliminated the need for manual visit to Banks/Treasuries.



159


Composite Score

0.239095

0.002844

0

0.05

0.1

0.15

0.2

0.25

0.3




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 significant.

CTPs: Difference of mean scores (of manual and online users) was not statistically significant 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 Officials 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





Eliminate practice of submission of hard copy to CTD (w.r.t e-filing)1.

Server speed should be increased2.

Tax consultants should be allowed to make e-payment on behalf of their clients – through3.

Consultant’s Internet Banking A/C (dealers do not want to give CTPs access to their accounts)

Involve more banks in e-payment4.

Changes in processes/templates should be immediately communicated to dealers5.

_______

13There were 28 attributes for dealers and 27 for CTPs

Dealers

CTPs



160



Awareness campaigns on online services for users1.

Establishment of common service centres to facilitate e-services to all2.

Online processes should be made much more user friendly & simple3.

Other Suggestions

All forms, including CST Forms, should be provided online1.

CTD officials should be given proper training w.r.t online services2.

Local language interface needed for online services3.


As part of the study we interviewed officials of CTD at the ward level. Information gathered from

them is summarized below:

Benefits of e-governance project:1.

Saving time and cost: CTD has benefited from online filing 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•


Filing Returns

Preparation of documents1. : Online dealers have to enter data on an online template – this is a


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 tem-

plate. 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



161


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 onlinetemplate - 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.

Submitting returns to CTD office2. : Online dealers have to submit hard copy of online returns

to CTD office – thus they have to make at least on trip to the office. There is a need to make this

service end-to-end and eliminate the need to visit office. 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:


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 filing•

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

One of the major suggestions that we received dealers and CTPs is that Tax consultants should1.

be allowed to make e-payment on behalf of their clients – through Consultant’s Internet Banking

A/C (dealers do not want to give CTPs access to their accounts)

Another major suggestion was to Involve more banks in e-payment2.



162


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 Officer. 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:



M O M O

Filing of returns14 99.92%

(80630)

0.08%

(68)

NA NA

Payment15 98.26%

(60472)

1.74%

(1054)

NA NA

Information Dissemination* 99% 1% NA NA

Application of statutory and other forms* 99% 1% NA NA


Source: Commercial Taxes Department, Chhattisgarh

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 defined as: Dealers who have availed at least one of the followingonline 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.


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. __________

14e-returns is optional for dealers.

15e-payment is optional for dealers.



163



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

Division No. of Dealers

Using e-Services

Percentage16 No. of Respondents/Division

Raipur 631 56.2% 450

Bilaspur 204 18.2% 145

Durg 287 25.6% 205

Total 1112 100% 800

Note: Sample size in each Division is proportionate to the number of users


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 difficult to find 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

Raipur Circle 05

Bastar (Jagdalpur 1)

Raipur Circle 04

Raipur Circle 03

Raipur Circle 02

Mahasamund

Bilaspur

Sarguja / Ambikapur

KorbaBilaspur Circle 01

Durg

Durg Circle 02

Durg Circle 01

Rajnandgaon

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



164


One Ward is near the Circle and the other is far from the Circle – Officials 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.



Divisions Selected Circles No. of Wards Sample Size/ Ward

Raipur

Raipur Circle 05 6 Circles X 2 = 12 450/12 = 36 (18 treatment + 18

comparison)Bastar (Jagdalpur 1)

Raipur Circle 04

Raipur Circle 03

Raipur Circle 02

Mahasamund

Bilaspur

Sarguja / Ambikapur 3 Circles X 2 = 6 145/6 = 24 (12 treatment + 12 comparison)

Korba

Bilaspur Circle 01

Durg

Durg Circle 02 3 Circles X 2 = 6 205/6= 34 (17 treatment + 17 comparison)

Durg Circle 01

Rajnandgaon

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



165


Annexure A– I


(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)


groups)





the randomized designs -- random assignment. In the NEGD, we most often use intact groups that wethink 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


the comparison one. But we can never be sure the groups are comparable. Or, put another way,

it’s unlikely that the two groups would be as similar as they would if we assigned them through a

random lottery.





Reference





166


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 E-Return E-Payment Total

Raipur

Raipur Circle 05 22 154 176

Bastar(Jagdalpur 1) 7 120 127

Raipur Circle04 7 103 110



Mahasamund 0 40 40


Jagdalpur 2 0 10 10


Dhamtari 0 19 19




Sub Total 631

Bilaspur

Sarguja / Ambikapur 0 87 87

Korba 1 39 40

Bilaspur Circle01 1 35 36

Raigarh01 3 15 18


Koriya (Manendagarh) 0 5 5

Janjgir Chapa 0 5 5


Raigarh 02 0 0 0

Sub Total 204

Durg

Durg Circle02 2 201 203Durg Circle01 0 40 40

Rajnandgaon 0 29 29

Durg Circle03 0 14 14

Durg Circle04 0 1 1

Sub Total 287

G. TOTAL 68 1054 1122

Note: Circles highlighted in Bold have been selected



167


Annexure – B

Chhattisgarh - Listing Schedule for Dealers

Address of Dealer17 Name Code

Division

Circle

Ward


< 50 lakhs………………………………………………….1

50 lakhs – 1 crore…………………………………………2

> 1 crore…………………………………………………….3

Services availed in last 90 days18

Service Used/Not Mode Outsourcing19

Filing Returns Yes-1; No-2 Manual -1; Online - 2 In-house - 1, Partial - 2, CTP - 3

Payment Yes-1; No-2 Manual -1; Online - 2 In-house - 1, Partial - 2, CTP - 3

Seeking Information Yes-1; No-2 Manual -1; Online - 2 In-house - 1, Partial - 2, CTP - 3

Obtaining Statutory Forms Yes-1; No-2 Manual -1; Online - 2 In-house - 1, Partial - 2, CTP - 3

Address of CTP20 (only if CTP’s service has been availed by the Dealer)


Date:

Chhattisgarh - Listing Schedule For CTPs

Address of CTP21 Name Code

Division

Range

Ward


Optional Services availed in last 90 days22



Payment Yes-1 No-2 Manual -1 Online - 2Seeking Information Yes-1 No-2 Manual -1 Online - 2

Obtaining Statutory Forms Yes-1 No-2 Manual -1 Online - 2


Date: ________

17With phone numbers and nearest landmark 18Circle responses19Completely in-house – 1; Partially in-house – 2; Completely outsourced to CTP – 320With phone numbers and nearest landmark 21With phone numbers and nearest landmark 22Circle responses



168


Annexure - C

Chhattisgarh: Interview Schedule for Dealers

A. IDENTIFICATION DETAILSSl. No. State State Code District District

Code

Date of Interview (DD/MM) Respondent’s Name &

Designation


Land : Town/

Village



TIN Group23 Division Division CodeTreatment (online)………1

Comparison (manual)....…2Interviewer Editor Supervisor Circle Circle code Name Name Name

Code Code Code Distance from Ward Office

(Km.)

Ward Ward code


B. DEALER PROFILE1B. Please specify the Constitution of your enterprise Proprietor……………………………….…1

Partnership………………………….…….2

Private Limited Company……….……….3



Co-operative Society……………………..6

Government Undertaking………………..7

Others (Specify)2B. Please specify the type of business24 Manufacture…………………………….…1

Wholesale…………………………….……2

Retail………………….……………………3

Export…………………………….………..4

Hire Purchase……………….…………….5

Works Contract………………..…………..6

Leasing………………………….…………7

Hotels………………………………………8

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 Registered Amount

Paid (INR)VAT Yes-1 No-2CST Yes-1 No-2Entry TaxOthers (Specify)

5B. Please specify the mode in which Books of

Accounts are maintained within the organization

Manual …………………………..……..….1


Not maintained at all……………………….36B. Number of staff in your organization who are

involved in activities related to Commercial Taxes

________________

23

As per the listing exercise24As per Commercial Tax Department records



169



1C. Are you aware of online services provided by


Yes - 1

No - 2 Part D

2C. Please specify the first source of awareness about

online services provided by Commercial Taxes

Department

Newspaper…………………….…………………….1

Television…………………………………………...2

Other Dealers………………………………………..3

CTPs…………..…………………………..………...4

Commercial Tax Dep. Official……………….……..5

Others (Specify)

3C. Which are the online services provided by




Application for issue of forms………………………2

Application for refund………...………….....………3

Filing Returns…………………………….…………4

Payment of Taxes……………………………………5


Others (Specify)



Yes – 1

No – 2 7C


frequency of use

Frequency of Use


Monthly………………….…… 2



Others (Specify)

Online Service Used/Not FrequencyFiling Returns Yes-1 No-2

Payment of Taxes Yes-1 No-2


Seeking information Yes-1 No-2Others (Specify) Yes-1 No-2









Online process is more transparent………………...5

It is mandatory………………………………….….6

Others (Specify)




Do not have access to hardware/software…..…....2


Unreliable power situation…………………….....4





Others (Specify)



170




availed from Commercial Tax Department in last 90 days

A B

1D. Services Availed in Last 90 Days: (Only Online services for Treatment Group and

only Manual Services for Comparison Group)

Filing Returns………………………………………………………………………1

Payment…………………………………………………………………………….2

Application of statutory and other forms…………………………………………..3




Mandatory – 1; Optional – 2[NOT APPLICABLE FOR MANUAL USERS]





Due to lack of sufficient knowledge on processes………......1

To ensure accuracy of data given to Department.……….......2

Want to avoid interface with Dep. Officials…………...…….3

Do not want to spent time on this……………………...…….4

Others (Specify)


6D. How many man-hours were spent in completing various forms and preparing supporting

documents for manual filing 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




9D. Please calculate the amount spent as salary/wages for preparation of documents forfiling returns (Total man-hours spent X wage per man-hour) {INR}








_________________





171



15D. How many trips did you need to make for the service – including

trips for error correction?

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 certificate……………………….……….……2

To correct error in certificate/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 fulfill requirement of physical presence……....…….8

Others (Specify)


III

III

IV

V


Why did you have to make more that one trip?

It was required – as per CTD procedure…………………..……1


service……….……….............................................................….2Could 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)

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 waitLong queue………………………………….…………........…1

Officials of CTD are inefficient (slow in processing)…….....…2

Processes are too complex & takes lot of time to complete……3

Too many applicants at office…………………………….....….4

Badly managed queue……………………………………......…5

Some windows/counters were not operational………….....……6

Power breakdown……………………………………….........….7

Computer/network connectivity failure…………………........…8

Others (Specify)20D. Please specify the travel cost incurred in making a round trip to

CTD Office (INR)



172


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 Office

(Min.)

24D. Please specify the travel time spent in making a round trip to Bank/

Treasury (Min.)


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


27D. Please see the previous question – if the number is more than one, thenask: 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


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]


excessive?

Yes – 1; No – 2 31D [NOT APPLICABLE FOR MANUALUSERS]


Server is slow…………………………………………………1

Processes are complex and time consuming…………………2

Errors occur while uploading template………………………3

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

ENTRY32D.

Service Charge paid to department for which you got a receipt? (INR)

33D. Service charge paid to Tax Consultant for facilitating service from CTD

Office (INR)



___________________

27Includes 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



173


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 filling 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 Manual Process


Total Total


Yes-1; No-2 Part E



To avoid audit assessment by CT Department……………….1

To influence functionaries to manipulate records in your favor.....2

To expedite the process…………………………….. …........3

Others (Specify)



174


E. OVERALL ASSESSMENT

On a 5 point scale (Dissatisfied-1; Somewhat dissatisfied-2; Neutral-3; Somewhat satisfied-4; Very satisfied-5) please

rate the following attributes (Online services for Treatment Group and Manual services for Comparison Group)

FILING OF RETURNS



PAYMENT OF TAX

4E. Time and effort in tax payment 5E. Security of monetary transactions

COMMON ATTRIBUTES



8E. Overall experience of availing service from

CTD

9E. Accuracy of transactions

10E. Confidentiality and security of data 11E. Time and effort in procuring forms

12E. Time and effort in accessing information 13E. Predictability of outcome

14E. Clarity and simplicity of processes and

procedures

15E. Accountability of Officials

16E. Transparency30 in CTD 17E. Knowledge of Officials

18E. Ability to influence policies, rules and

procedures through feedback

19E. Level of corruption31

20E. Courtesy and helpfulness of Officials 21E. Problem resolution32



23E. Convenience of working hours33

24E. Queuing system at CTD Office 25E. Convenience of location of office

(accessibility and ambience)

26E. Adherence to Citizen Charter 34 27E. Dependence on CTPs35

28E. Durability and legibility of certificates/receipts

29E. Among the above given factors please list the three factors that you consider the most

important


__________


convenience of obtaining service

29Governance is understood as transparency, accountability and corruption-free working

30Understanding and awareness of the basis on which decisions affecting you/other users are taken by officials

31Very corrupt-1; Somewhat corrupt-2; Neutral-3; Somewhat less corrupt-4; Not at all corrupt-5


33Hours of service in case of online services


35Very much dependant -1; Somewhat dependant -2; Neutral-3; Somewhat less dependant-4; Not at all dependant-5



175


F. SUGGESTIONS36



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 Consultant’s

Internet Banking A/C…..............................................................................................................................…c

Maintenance of website should not be done during Office Hours of Traders/Tax Consultants……………d

CTD officials should be given adequate training, so that they can handle queries on online services

efficiently........................................................................................................................................................e

Involve more Banks in E-payment……………………………....................................………………...…..f

Provide templates(w.r.t. returns) that can perform data verification offline………………….….........……g

Changes in processes/templates should be immediately communicated to dealers…………....…………..h

Others (Specify)



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)

____ 36This part is for all users - manual and online



176


Annexure – D

Chhattisgarh: Interview Schedule for CTP

A. G. IDENTIFICATION DETAILS

Sl. No. State State Code District Dis-

trict

Code


Address with landmark Location of OfficeTown/Vil-

lage


Urban………….2Phone Group37 Division Division

CodeLand Line : Mobile: Treatment (online)……..…1


Interviewer Editor Supervisor Circle Circle

code Name Name Name

Code Code Code Distance from Ward Office

(Km.)

Ward Ward

codeSignature Signature Signature

A. H. Profile of Tax Consultant1B. Educational qualification of Tax Consultant FICA. - 1

LLB - 2

Others (Specify)2B. Years of Experience as Tax Consultant3B. What was the annual turnover in Financial Year: 2008-09

(INR)4B. Major services provided to clients (only those for which ser-

vice charge is taken), service charge (average)

SERVICE


TAX


Tax Service Service Charge (INR)Manual Online

5B. Number of staff in your organization who are involved in

activities related to Commercial Taxes6B. Is the Tax Consultant computer literate? Yes – 1

No - 2 Part C7B. Has the Tax Consultant used any online E-Gov. service Yes – 1

No - 2

___________




177


I. AWARENESS AND USAGE OF ONLINE SERVICES

1C. Are you aware of online services provided by Commer-

cial Taxes Department?

Yes - 1

No - 2 Part D



Newspaper…………………………………..1

Television………………………..………….2

Dealers………..……………………………..3

Other CTPs……………..………..…………4

Commercial Tax Dep. Official....…….…….5

Others (Specify)


Taxes Department?


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


frequency of use

Frequency of Use

Daily………………………..…….1

Weekly……………………....……2Fortnightly…………………….….3

Monthly…………………….…… 4

Quarterly…………………….……5

Annually…………………………..6

Others (Specify)









PLEASE PROCEED TO PART D AFTER AN-SWERING THIS QUESTION




Fewer visits to Commercial Taxes Department….4Online process is more transparent……………….5

It is mandatory………………………....………….6

Others (Specify)






Unreliable power situation…………………..…..4





Others (Specify)



178


J. TIME AND EFFORT AND COSTS OF AVAILING SERVICESPlease provide the following details with reference to maximum of two services that

you have availed from Commercial Tax Department in last 90 days A B

38D. Services Availed in Last 90 Days: (Only Online services for Treatment

Group and only Manual Services for Comparison Group)

Filing Returns……………………………………………………………1

Payment………………………………………………....……………….2

Application of statutory and other forms………………………………..3

Seeking information (including application tracking)………4 12D






41D. How many man-hours were spent in completing various forms and prepar-

ing supporting documents for manual filing of returns?

PLEASE NOTE THAT THIS COULD BE APPLICABLE FOR ON-

LINE USERS AS WELL - MANY OF THEM ARE REQUIRED TOFILE HARD COPIES, EVEN AFTER FILING RETURNS ONLINE



43D. Total man-hours spent for preparation of documents for filing returns (6D

+ 7D)

44D. Please calculate the amount spent as salary/wages for preparation of docu-

ments for filing returns (Total man-hours spent X wage per man-hour)

{INR}


46D. Cost of access to Internet39

(INR)


47D. Cost of Statutory Forms and other Forms – including courier charges

(INR)


________





179



49D. How many trips did you need to make for the service – including trips for

error correction?

50D. 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 certificate………...……………….………….……2

To correct error in certificate/document issued by CTD………3

To correct errors in documents submitted by Dealer/Tax Consul-

tant…..……4

To track application……………………………………………5

To seek information……………………………………………6

To bank/treasury for making payment - Challan (applicable only

for payment)….7

To fulfill requirement of physical presence…………………….8

Others (Specify)


I

II

III

IV

V

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……………………………..……1To 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

No – 2 17D



180



Long queue……………………………………………………………1

Officials of CTD are inefficient (slow in processing)………………….2

Processes are too complex & takes lot of time to complete………..….3

Too many applicants at office………………………………………….4

Badly managed queue…………………………………………………5

Some windows/counters were not operational…………………………6

Power breakdown……………………………………………………....7

Computer/network connectivity failure…………………………….….8

Others (Specify)

54D. Please specify the travel cost incurred in making a round trip to CTD Of-

fice (INR)


Treasury (INR)



per trip) INR


(Min.)

58D. Please specify the travel time spent in making a round trip to Bank/Trea-

sury (Min.)



per trip) Min.

60D. How many times did you log-in to avail online service? [NOT APPLI-

CABLE FOR MANUAL USERS]

61D. 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 APPLICA-

BLE 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 first………3

Others (Specify)

62D. 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 exces-

sive?

Yes – 1; No – 2 28D [NOT APPLICABLE FOR MANUAL US-

ERS]

64D. Why do you think are the reasons for excessive time in online transac-

tions?

Server is slow……………………………………………….………1

Processes are complex and time consuming……..…………………2

Errors occur while uploading template.……………………………3

Others (Specify)



181



availing service: traveling time + waiting time + time for online transac-tion (man-hours spent X wage per man-hour) {INR}


FORMS, PREPARATION OF SUPPORTING DOCUMENTS AND

DATA ENTRY



68D. 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 receiv-

ing the service applied for? (this does not include time taken for filling

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

Manual

Process

Online

Process

Online

Process

Total Total


Yes-1; No-2 Part E



To avoid audit assessment by CT Department………………………….1

To influence functionaries to manipulate records in your favor…….….2

To expedite the process…………………....…..……………………..…3

Others (Specify)


On a 5 point scale (Dissatisfied-1; Somewhat dissatisfied-2; Neutral-3; Somewhat satisfied-4; Very satisfied-5) please

rate the following attributes (Online services for Treatment Group and Manual services for Comparison Group)FILING OF RETURNS



PAYMENT OF TAX


COMMON ATTRIBUTES(Applicable For All Services)



CTD



_____________

40Includes a) amount paid to department for which receipt was given, and b) amount paid as bribe to department staff/functionaries41Quality of service is understood as fairness, speed of processing, accuracy of transactions, legibility and durability of certificates and printouts,

convenience of obtaining service42Governance is understood as transparency, accountability and corruption-free working



182



43E. Clarity and simplicity of processes and proce-

dures



47E. Ability to influence policies, rules and proce-

dures through feedback



51E. Complaint handling mechanism (including ser-

vice provided by Call centre/Helpline)


53E. Queuing system at CTD Office 54E. Convenience of location of office (accessibil-

ity and ambience)55E. Adherence to Citizen Charter 47 56E. Durability and legibility of certificates/re-

ceipts57E. Among the above given factors please list the three factors that you consider the most important


L. SUGGESTIONS48



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

Consultant’s Internet Banking A/C…..................................................................................................................…c

Maintenance of website should not be done during Office Hours of Traders/Tax Consultants…………………..d

CTD officials should be given adequate training, so that they can handle queries on online services

efficiently……………...............................................................................................................................………..e

Involve more Banks in E-payment………………………………………………............................................…..f

Provide templates(w.r.t. returns) that can perform data verification offline……………...…………….…....……g

Changes in processes/templates should be immediately communicated to dealers…………………..…………..h

Others (Specify)

_____________

43Understanding and awareness of the basis on which decisions affecting you/other users are taken by officials44Very corrupt-1; Somewhat corrupt-2; Neutral-3; Somewhat less corrupt-4; Not at all corrupt-545Mechanism to rectify inadvertent errors in forms/documents submitted by Dealers to CTD e.g. computational errors/wrong figures46Hours of service in case of online services47Adherence of the time frame for service delivery (elapsed time) to that specified in citizen’s charter 48This part is for all users - manual and online



183




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)



184


Annexure – E

Field Work

At the Ward Level, two locations was selected on the basis on their distance from Ward Office –•

one far and the other near.



than the number of dealers to be interviewed in that Ward – as dealers who outsource entire


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 classified as treatment/•

control group

Similarly, CTPs were also classified as treatment/control group. Contact details of CTPs were•

collected through listing exercise among Dealers



185


Annexure – F

Chhattisgarh: Dealers Using Optional Online Services






Total 605 100.0



(Online)

Comparison (Manual) Total

Raipur


Bastar (Jagdalpur1) 66 28 94




Mahasamund 7 28 35

Raipur 01 12 0 12Total 171 170 341

Bilaspur


Korba 18 18 36

Bilaspur Circle 01 18 18 36

Total 54 54 108

Durg

Durg Circle 02 26 26 52


Rajnandgaon 26 26 52

Total 78 78 156


Location Treatment (Online) Comparison (Manual) Total

Rural3 0 3

1.0% .0% .5%

Urban300 302 602

99.0% 100.0% 99.5%

Total303 302 605

100.0% 100.0% 100.0%



186




Constitution of your enterprise Treatment (Online) Comparison (Manual) Total


54.8% 84.4% 69.6%

Partnership66 24 90

21.8% 7.9% 14.9%


20.8% 7.0% 13.9%

Public Limited Company8 2 10

2.6% .7% 1.7%

Total303 302 605

100.0% 100.0% 100.0%


Type of business Treatment (Online) Comparison (Manual) Total

Manufacture94 14 108

31.0% 4.6% 17.9%


34.0% 38.7% 36.4%

Retail98 164 262

32.3% 54.3% 43.3%

Export0 3 3

.0% 1.0% .5%

Hire purchase0 2 2

.0% .7% .3%

Work contract7 0 7

2.3% .0% 1.2%

Food Drink 1 2 3

.3% .7% .5%

Total 303 302 605100.0% 100.0% 100.0%


Registered for VAT Treatment (Online) Comparison (Manual) Total

Yes303 302 605

100.0% 100.0% 100.0%

Total303 302 605

100.0% 100.0% 100.0%



187



Registered for CST Treatment (Online) Comparison (Manual) Total

Yes158 77 235

2.1% 25.5% 38.8%

No145 225 370

47.9% 74.5% 61.2%

Total303 302 605

100.0% 100.0% 100.0%





Manual10 250 260

3.3% 82.8% 43.0%


96.7% 17.2% 57.0%

Total303 302 605

100.0% 100.0% 100.0%




Commercial Taxes


1299 269 568

98.7% 89.1% 93.9%

24 32 36

1.3% 10.6% 6.0%

30 1 1

.0% .3% .2%

Total303 302 605

100.0% 100.0% 100.0%

SECTION C: Awareness And Usage of Online Services


Aware about online services provided

by CTD

Treatment

(Online)


Yes303 121 424

100.0% 40.1% 70.1%

No0 181 181

.0% 59.9% 29.9%

Total303 302 605

100.0% 100.0% 100.0%



188



First source of awareness about

online services


Newspaper 15 4 19

5.0% 3.3% 4.5%

Television23 6 29

7.6% 5.0% 6.8%

Dealers17 15 32

5.6% 12.4% 7.5%

CTPs118 65 183

38.9% 53.7% 43.2%

Commercial tax department official

130 31 161

42.9% 25.6% 38.0%

Total303 121 424

100.0% 100.0% 100.0%


Online services of CTD Treatment (Online) Comparison (Manual) Total


2.6% 5.0%

Filing Returns

251 100 351

82.8% 82.6%

Payment of Taxes273 116 389

90.1% 95.5%


43.9% 28.1%

Total 303 121 424


Used any of the online services

provided by CTD


Yes303 0 303

100.0% .0% 71.5%

No0 121 121

.0% 100.0% 28.5%

Total303 121 424

100.0% 100.0% 100.0%



189



Reasons for using e-services Treatment (Online) Total


94.7%


67.0%


48.2%


51.2%


16.2%

Total 303 303


Reasons for not using e-services Comparison (Manual) Total


26.4%

Do not have access to hardware/software42 42

34.7%

Do not have access to internet 49 4940.5%


5.0%


23.1%


10.7%


22.3%

Have to submit hard copy to office28 28

23.1%

Others4 4

3.3%

Total 121 121



190






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 significantly lesser than that of manual users.

Man-hours were spent for data entry in

online template

NA 0.6324

N 175

S.E. 0.0213

Mode .50

Total man-hours for preparation of

documents1.8175 1.6623 -.15518 *

N 254 175

S.E. .06218 .05010

Mode 2 1.50

Comment: Total man-hours spent by online dealers in preparation of documents are significantly 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(INR)

38.76 66.79 28.031 **

N 254 175

S.E. 2.519 4.659

Mode 25 78

Comment: Salary/wages spent for preparation of document is significantly 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 filing of returns are paid higher salary/wages when compared to those engaged in

manual filing of returns.

Cost of stationery for preparation of

documents (INR)22.12 22.38 .259 NS

N 254 175

S.E. 1.460 1.030

Mode 10 20


N 175

S.E. 1.432

Mode 15

Cost of Statutory Forms and other Forms –

including courier charges (INR)3.63 .23 -3.401 **

N 254 175

S.E. .702 .161

Mode 0 0



191



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.


preparation of documents(INR)742.88 812.53 69.650 NS

N 236 128

S.E. 44.322 45.748

Mode 500 1000


(INR)754.7480 716.1371 -38.6108 NS

N 254 175

S.E. 44.49903 43.22974

Mode 268 158

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


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 office

Waiting time (Minutes) 39.3583 35.1287 -4.22961 *

N 254 171

S.E. 1.61623 1.73660Mode 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

online service NA 1.64

N 175

S.E. .053

Mode 1

Total time taken to complete transaction

Online (Minutes) NA 14.05

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.



192




spent in availing service (INR)24.37 56.63 32.258 **

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 .


N 254 175

S.E. .000 .000Mode 0 0


facilitating service from CTD Office (INR)718.75 788.65 69.904 NS

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

process (Hours).6657 .5714 -.09438 **

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 process (Hours)

NA .2345

N 175

S.E. .01339

Mode .16


(Hours).6677 .8059 .13817 **

N 254 175

S.E. .03174 .03819

Mode .50 .49

Comment: Total elapsed time is significantly 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 Office.



193




Processes were related to service outsourced Treatment

(Online)

Comparison

(Manual)

Total


26.9% 7.1% 15.2%


73.1% 92.9% 84.8%

Total175 254 429

100.0% 100.0% 100.0%


Reasons for depending on CTP Treatment

(Online)

Comparison

(Manual)

Total

Due to lack of sufficient knowledge on processes44 165 209

34.4% 69.9%


45.3% 30.9%

Want to avoid interface with Dep. officials24 36 60

18.8% 15.3%


33.6% 17.4%

Total 128 236 364


Number of trips need to make for the service Treatment

(Online)

Comparison

(Manual)

Total

04 0 4

2.3% .0% .9%

1163 242 405

93.1% 95.3% 94.4%

28 12 20

4.6% 4.7% 4.7%

Total175 254 429

100.0% 100.0% 100.0%



194


Table 20: Reasons for making more than one trip

Reasons to make more that one trip Treatment

(Online)

Comparison

(Manual)

Total

It was required -as per CTD procedure4 4 8

50.0% 33.3% 40.0%

To follow up, a there was delay n the part of CTD to

provide service

2 7 9

25.0% 58.3% 45.0%

Could not avail service in previous visit as there was a

long queue

0 1 1

.0% 8.3% 5.0%

Documents/application submitted by me were

incomplete

2 0 2

25.0% .0% 10.0%

Total

8 12 20

100.0% 100.0% 100%


Had to wait excessively for availing service in any of

the trips

Treatment

(Online)

Comparison

(Manual)

Total

Yes36 59 95

21.1% 23.2% 22.4%

No135 195 330

78.9% 76.8% 77.6%

Total 171 254 425100.0% 100.0% 100.0%



(Online)

Comparison

(Manual)

Total

Long queue/ Too many applicants at office/ Badly man-

aged queue

29 50 79

80.6% 84.7% 83.2%

Officials of CTD are inefficient (slow in processing)6 5 11

16.7% 8.5% 11.6%


.0% 6.8% 4.2%

Some windows/counters were not operational1 0 1

2.8% .0% 1.1%

Total36 59 95

100.0% 100.0% 100.0%



195



Number of times log-in to avail online service Frequency Percent

1 82 46.9

2 78 44.6

3 11 6.3

4 4 2.3

Total 175 100.0


Reason for log-in more than once Frequency Percent

Service was not available as server was slow 93 100.0


Time taken to complete online transaction was

excessive

Frequency Percent

Yes 87 49.7

No 88 50.3

Total 175 100.0


Reasons for excessive time in online transactions Frequency Percent

Server is slow 83 95.4

Processes are complex and time consuming 4 4.6

Total 87 100.0


Paid a bribe directly to Officials Treatment

(Online)

Comparison

(Manual)

Total

Yes0 1 1

.0% .4% .2%

No175 253 428

100.0% 99.6% 99.8%

Total 175 254 429

100.0% 100.0% 100.0%



196



Purpose of bribe Comparison (Manual) Total

To influence functionaries to manipulate records in our favor 1 1

100.0% 100.0%

Total1 1

100.0% 100.0%

Table 29: Time and cost of Tax Payment

Tax Payment Manual Computerized Change

(C-M)

Significance

Time and Cost of Preparation of Documents for Payment

Man-hours were spent in preparation of documents for

manual process.9333 0 -.93332 **

N 229 205

S.E. .04815 0

Mode 1 0

Comment: In the manual mode users need to fill up information in Bank challan

Man-hours were spent for data entry in online tem-

plate NA .6358

N 205

S.E. .02468

Mode 0.5

Comment: Online users need to fill 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 significantly less in the case of online dealers.

Salary/wages for preparation of documents (INR) 17.32 17.30 -.021 NS

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 NS

N 229 205

S.E. .882 .464

Mode 10 10


N 205

S.E. .540

Mode 10


courier charges (INR)0 0



197



(C-M)

Significance

N 229 205

S.E. 0 0

Service charge paid to Tax Consultant for preparation

of documents(INR)287.50 386.54 99.038 NS

N 26 13

S.E. 43.173 97.057

Mode 0 0


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 significant difference between the two

modes.


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 Office to make payment


N 229S.E. 1.074

Mode 10

Travel cost (INR) 11.54 NA

N 229

S.E. .444 .

Mode 10


N 229

S.E. 1.162

Mode 20

Number of times user had to log-in to avail online serv-ice

NA 1.45

N 205

S.E. .053

Mode 1

Total time taken to complete transaction Online (Min-

utes) NA 13.91

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.



198



(C-M)

Significance

Amount spent as salary/wages on total time spent in

availing service (INR)15.36 5.61 -9.748 **

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 offices. Therefore they

spend lesser on salary/wages when compared to manual dealers.


N 229 205

S.E. .000 .000

Mode 0 0

Service charge paid to Tax Consultant for facilitating

service from CTD Office (INR)271.85 358.93 87.077 NS

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

(Hours).4326 .0000 -.43262

N 229 205

S.E. .02048 .0000

Mode 0.16 0

Time in availing service through Online

process (Hours)0 .2547 -.2547

N 229 205

S.E. .00728 .02549Mode 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 significantly lesser than that of manual dealers.



199


OTHER TABLES: Time and Cost of Tax Payment


Processes were related to the service

outsourced



94.1% 88.6% 91.2%


5.9% 11.4% 8.8%

Total205 229 434

100.0% 100.0% 100.0%


Reasons for depending on CTP Treatment (Online) Comparison (Manual) Total

Due to lack of sufficient knowledge on

processes

10 18 28

83.3% 69.2%

Do not want to spent time on this 2 8 10

16.7% 30.8%

Total 12 26 38


Number of trips need to make for the

service


0205 0 205

100.0% .0% 47.2%

10 229 229

.0% 100.0% 52.8%

Total205 229 434

100.0% 100.0% 100.0%


Q18D A Do you think you had to wait excessively for

availing service in any of the trips


Yes42 42

18.3% 18.3%

No187 187

81.7% 81.7%

Total229 229

100.0% 100.0%



200



Reasons for excessive wait Comparison (Manual) Total

Long queue/ Too many applicants at office/ Badly managed queue35 35

83.4 83.4%

Officials of CTD are inefficient (slow in processing)3 3

7.1% 7.1%

Processes are too complex & take lot of time to complete4 4

9.5% 9.5%

Total42 42

100.0% 100.0%



1 133 64.9

2 60 29.3

3 7 3.4

4 1 .5

5 4 2.0

Total 205 100.0


Reason for log-in more than once Frequency Percent


Server was undergoing maintenance 1 1.4

Total 72 100.0


Time taken to complete online transaction was excessive Frequency Percent

Yes 84 41.0

No 121 59.0

Total 205 100.0


Reasons for excessive time in online transaction Frequency Percent



Total 84 100.0



201




(Online)

Comparison

(Manual)

Total

Yes0 1 1

.0% .4% .2%

No205 228 433

100.0% 99.6% 99.8%

Total205 229 434

100.0% 100.0% 100.0%


Purpose of bribe Comparison (Manual) Total

To influence functionaries to manipulate records in our

favor

1 1

100.0% 100.0%

Total1 1

100.0% 100.0%



Overall Assessment Computerized Manual Change (C-M) Significance

Time and effort in filing returns 3.55 3.42 .130 NS

N 176 301

S.E. .072 .056

Cost incurred in filing returns 3.79 3.52 .268 **

N 176 297

S.E. .071 .060

Design and layout of forms (templates in

case of online

3.75 3.25 .496 **

N 299 32

S.E. .054 .191

Time and effort in tax payment 3.74 3.46 .277 **

N 223 300

S.E. .056 .055

Security of monetary transactions 3.84 3.55 .290 **

N 215 299

S.E. .055 .054

Overall quality of service 3.97 3.68 .295 **

N 301 302

S.E. .044 .051

Overall quality of governance 3.71 3.50 .213 **

N 303 300



202



S.E. .046 .052


CTD3.81 3.65 .163 **

N 302 301

S.E. .046 .050

Accuracy of transactions 3.92 3.50 .421 **

N 303 302

S.E. .048 .055

Confidentiality and security of data 3.54 3.57 -.032 NS

N 303 302

S.E. .057 .052

Time and effort in procuring forms 3.69 3.38 .308 **

N 302 302

S.E. .051 .055

Time and effort in accessing information 3.84 3.32 .524 **

N 303 302

S.E. .051 .058

Predictability of outcome 3.61 3.33 .283 **

N 303 302

S.E .050 .058

Clarity and simplicity of processes and

procedures3.77 3.41 .362 **

N 303 302

S.E .050 .055

Accountability of Officials 3.42 3.19 .230 **

N 303 301

S.E. .051 .059

Transparency in CTD 3.70 3.43 .266 **

N 303 302

S.E. .049 .056

Knowledge of Officials 3.52 3.23 .293 **

N 303 302

S.E. .051 .059


procedures3.47 3.27 .200 **

N 303 302

S.E. .054 .056

Level of corruption 2.82 2.77 .041 NS

N 303 301

S.E. .057 .058

Courtesy and helpfulness of Officials 3.34 3.22 .121 NS

N 303 302

S.E. .051 .058

Problem resolution 3.52 3.36 .166 **



203



N 303 301

S.E. .050 .057

Complaint handling mechanism 3.29 3.17 .118 NS

N 303 302

S.E. .047 .056

Convenience of working hours 3.75 3.45 .294 **

N 303 301

S.E. .054 .058

Queuing system at CTD Office 3.53 3.36 .173 *

N 279 302

S.E. .068 .062

Convenience of location of office 3.87 3.57 .305 **

N 303 302

S.E. .046 .058

Adherence to Citizen Charter 3.50 3.36 .143 **

N 301 301

S.E. .046 .050

Dependence on CTPs 3.81 3.51 .297 **

N 303 299

S.E. .059 .057


receipts

3.62 3.24 .375 **

N 292 269

S.E. .049 .067

Composite Score


Respondents who


be Among Three Most

Important


Scores

Improvement



(Column

a/ Total of

Column a)

Computer-

ized

Manual Difference

(Column c

–Column d)

Weighted

Score

(Column e X

Column b)

Time and effort in filing returns 82 4.5% 3.55 3.42 .130 0.00585

Cost incurred in filing returns 34 1.9% 3.79 3.52 .268 0.005092

Design and layout of forms 39 2.1% 3.75 3.25 .496 0.010416

Time and effort in tax payment 65 3.6% 3.74 3.46 .277 0.009972

Security of monetary

transactions

63 3.5% 3.84 3.55 .290 0.01015



204


Respondents who


be Among Three Most

Important


Scores

Improvement



(Column

a/ Total of

Column a)

Computer-

ized

Manual Difference

(Column c

–Column d)

Weighted

Score

(Column e X

Column b)

Overall quality of service 48 2.6% 3.97 3.68 .295 0.00767

Overall quality of governance 125 6.9% 3.71 3.50 .213 0.014697


service from CTD

83 4.6% 3.81 3.65 .163 0.007498

Accuracy of transactions 124 6.8% 3.92 3.50 .421 0.028628

Confidentiality & security of

data31 1.7% 3.54 3.57 -.032 -0.00054


forms159 8.8% 3.69 3.38 .308 0.027104


information64 3.5% 3.84 3.32 .524 0.01834

Predictability of outcome 33 1.8% 3.61 3.33 .283 0.005094


processes and procedures28 1.5% 3.77 3.41 .362 0.00543

Accountability of Officials 46 2.5% 3.42 3.19 .230 0.00575

Transparency in CTD 45 2.5% 3.70 3.43 .266 0.00665

Knowledge of Officials 94 5.2% 3.52 3.23 .293 0.015236

Ability to influence policies,

rules and procedures through

feedback

17 .9% 3.47 3.27 .200 0.0018

Level of corruption 202 11.1% 2.82 2.77 .041 0.004551

Courtesy and helpfulness of

Officials53 2.9% 3.34 3.22 .121 0.003509

Problem resolution 138 7.6% 3.52 3.36 .166 0.012616

Complaint handling mechanism 25 1.4% 3.29 3.17 .118 0.001652

Convenience of working hours 33 1.8% 3.75 3.45 .294 0.005292

Queuing system at CTD Office 54 3.0% 3.53 3.36 .173 0.00519

Convenience of location of

office49 2.7% 3.87 3.57 .305 0.008235

Adherence to Citizen Charter 7 .4% 3.50 3.36 .143 0.000572

Dependence on CTPs 64 3.5% 3.81 3.51 .297 0.010395


certificates/receipts10 .6% 3.62 3.24 .375 0.00225




205




Suggestions for improving e-services Responses Percent of Cases

Eliminate practice of submission of hard copy of CTD447

22.6% 73.9%

Server speed should be increased387

19.6% 64.0%


behalf of their clients – through Consultant’s Internet Banking

A/C

178

9.0% 29.4%

Maintenance of website should not be done during office hour

115

5.8% 19.0%


can handle queries on online services efficiently

137

6.9% 22.6%

Involve more banks in e-payment299

15.1% 49.4%

Provide templates (w.r.t. returns) that can perform data

verification offline

170

8.6% 28.1%


communicated

245

12.4% 40.5%

Total1978

100.0%


Suggestions to increase use of e-service Responses Percent of Cases

Awareness campaigns on online services for dealers492

40.8% 81.3%


e-services to all

286

23.7% 47.3%

Online processes should be made much more user friendly &

simple

429

35.5% 70.9%

Total1207

100.0%



206


Annexure – G

Chhattisgarh: CTPs using Optional Online Services




Treatment (online) 111 55.2

Comparison (manual) 90 44.8

Total 201 100.0



(online)

Comparison

(Manual)

Total

Raipur


Bastar (Jagdalpur1) 11 9 20



Raipur Circle 02 10 10 20Mahasamund 10 2 12

Raipur 01(Extra) 8 0 8

Total 69 48 117

Bilaspur


Korba 6 6 12

Bilaspur Circle 01 5 6 11


Total 18 18 36

Durg



Rajnandgaon 8 7 15Total 24 24 48


Location Treatment (online) Comparison (manual) Total

Rural3 0 3

2.7% .0% 1.5%

Urban108 90 198

97.3% 100.0% 98.5%

Total111 90 201

100.0% 100.0% 100.0%



207




Educational qualification of Tax Consultant Treatment

(online)

Comparison

(manual)

Total

CA47 20 67

42.3% 22.2% 33.3%

LLB58 61 119

52.3% 67.8% 59.2%

B.Com6 9 15

5.4% 10.0% 7.5%

Total111 90 201

100.0% 100.0% 100.0%


Years of experience of Tax Consultant Treatment

(online)

Comparison

(manual)

Total

≤ 5 Years18 12 30

16.2% 13.3% 14.9%

6-10 Years40 30 70

36.0% 33.3% 34.8%

11-15 Years

42 29 71

37.8% 32.2% 35.3%

>15 Years11 19 30

9.9% 21.1% 14.9%

Total111 90 201

100.0% 100.0% 100.0%




Treatment

(online)

Comparison

(manual)

Total

181 73 154

73.0% 81.1% 76.6%

225 13 38

22.5% 14.4% 18.9%

35 4 9

4.5% 4.4% 4.5%

Total111 90 201

100.0% 100.0% 100.0%



208



Tax Consultant is computer literate Treatment (online) Comparison

(manual)

Total

Yes111 59 170

100.0% 65.6% 84.6%

No0 31 31

.0% 34.4% 15.4%

Total111 90 201

100.0% 100.0% 100.0%


Tax Consultant used any online e-Gov. service Treatment (online) Comparison

(manual)

Total

Yes111 2 113

100.0% 3.4% 66.5%

No0 57 57

.0% 96.6% 33.5%

Total111 59 170

100.0% 100.0% 100.0%



Aware about online services provided by Commercial

Taxes Department

Treatment (online) Comparison

(manual)

Total

Yes111 63 174

100.0% 70.0% 86.6%

No0 27 27

.0% 30.0% 13.4%

Total111 90 201

100.0% 100.0% 100.0%



209



First source of awareness about online services Treatment (online) Comparison

(manual)

Total

Newspaper 22 10 32

19.8% 15.9% 18.4%

Television9 2 11

8.1% 3.2% 6.3%

Other CTPs27 20 47

24.3% 31.7% 27.0%

Commercial tax department official53 31 84

47.7% 49.2% 48.3%

Total

111 63 174

100.0% 100.0% 100.0%


Online services of CTD Treatment

(online)

Comparison

(manual)

Total


6.3% 7.9%


97.3% 93.7%

Payment of Taxes

104 62 166

93.7% 98.4%


57.7% 54.0%

Total 111 63 174


Used any of the online services provided by CTD Treatment (online) Comparison

(manual)

Total

Yes111 0 111

100.0% .0% 63.8%

No0 63 63

.0% 100.0% 36.2%

Total111 63 174

100.0% 100.0% 100.0%



210



Reasons for using e-services Treatment (online) Total


85.6%


36.0%


28.8%


71.2%


46.8%Total 111 111


Reasons for not using e-services Comparison

(manual)

Total


17.5%


33.3%

Do not have access to internet 15 1523.8%


3.2%


12.7%


9.5%


58.7%


60.3%

Others1 1

1.6%

Total 63 63



211




Filing Returns Manual Computer-

ized

Change

(C-M)

Significance


Man-hours spent in preparation of documents for

manual process.8767 .5554 -.32123 **

N 87 103

S.E. .07582 .03385

Mode .50 .50

Comment: Man-hours spent in compiling data for online dealers is significantly lesser than that of manual users.Man-hours were spent for data entry in online tem-

plate NA .4075

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


N 87 103S.E. 1.287 .970

Mode 6 7

Comment: Salary/wages spent for preparation of document is significantly 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


N 103

S.E. 1.806Mode 10

Cost of Statutory Forms and other Forms – includ-

ing courier charges (INR)5.59 2.65 -2.936 NS

N 87 103

S.E. 2.137 .938

Mode 0 0


N 87 103

S.E. 5.27258 4.81110

Mode 16.00a 37.00

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



212



ized

Change

(C-M)

Significance

Time and Cost of Availing Service(for Filing of Returns) From Commercial Taxes Department


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 office

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


service NA 2.17

N 103

S.E. .225

Mode 2


(Minutes) NA 15.53

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 transac-

tion was excessive.


in availing service (INR)19.49 26.00 6.506 **

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.


N 87 103

S.E. .000 .000

Mode 0 0


N 87 103



213



ized

Change

(C-M)

Significance

S.E. .000 .000

Mode 0 0

Total payment made (Rs) .00 .00

N 87 103

S.E. .000 .000

Mode 0 0


(Hours).6248 .5992 -.02560 NS

N 87 103

S.E. .04842 .03475

Mode .50 .50

Time in availing service through Online process

(Hours) NA .2619 .26194

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 significantly 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 Office.




(online)

Comparison

(manual)

Total

1102 83 185

99.0% 95.4% 97.4%

21 3 4

1.0% 3.4% 2.1%

30 1 1

.0% 1.1% .5%

Total103 87 190

100.0% 100.0% 100.0%



214




(online)

Comparison

(manual)

Total


100.0% 75.0% 80.0%

To follow up, a there was delay on the part of CTD to pro-

vide service

0 1 1

.0% 25.0% 20.0%

Total1 4 5

100.0% 100.0% 100.0%


Had to wait excessively for availing service in any of thetrips

Treatment(online)

Comparison(manual)

Total

Yes47 22 69

45.6% 25.3% 36.3%

No56 65 121

54.4% 74.7% 63.7%

Total103 87 190

100.0% 100.0% 100.0%


Reasons for excessive wait Treatment(online)

Comparison(manual)

Total

Long queue/ Too many applicants at office45 19 64

95.7% 86.3% 92.8%


.0% 13.6% 4.3%


2.1% .0% 1.4%


2.1% .0% 1.4%

Total 47 22 69

100.0% 100.0% 100.0%


Number of times log-in to avail online service Frequency Valid Percent

1 35 34.0

2 55 53.4

3 5 4.9

4 3 2.9

5 1 1.0

>5 4 4.0

Total 103 100.0



215



Reasons to log-in more than once Frequency Percent


Templates had changed, therefore it had to be downloaded first 1 1.5

Total 68 100.0



Yes 43 41.7

No 60 58.3

Total 103 100.0


Reasons for excessive time Frequency Percent



Total 43 100.0


Paid bribe directly to

officials

Treatment (online) Comparison (manual) Total

No103 87 190

100.0% 100.0% 100.0%

Total103 87 190

100.0% 100.0% 100.0%

Table 25: Time and cost of Tax Payment



Man-hours were spent in preparation of

documents for manual process.4550 0 -.4550 **

N 44 37S.E. .05996 0

Mode .25 .00

Comment: In the manual mode users need to fill up information in Bank challan


template

NA .3732

N 37

S.E. .03608



216



Mode .50

Comment: Online users need to fill 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

(INR) 10.45 6.35 -4.103 NS

N 44 37

S.E. 2.208 .910

Mode 10 10


N 37

S.E. .738

Mode 10

Cost of Statutory Forms and other Forms – includ-

ing courier charges (INR)1.14 3.24 2.107 NS

N 44 37

S.E. .647 2.741

Mode 0 0


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 significant difference between the two

modes.


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 Office 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 dealer’s 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.


N 44

S.E. 1.812



217



Mode 30


N 44

S.E. 1.094

Mode 10


N 44

S.E. 1.92029

Mode 30.00


service NA 1.38

N 37

S.E. .118

Mode 1


(Minutes) NA 12.84

N 37

S.E. 1.017

Mode 10


in availing service (INR)11.23 4.24 -6.984 **

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 offices. Therefore they

spend lesser on salary/wages when compared to manual users.


N 44 37

S.E. .000 .000

Mode 0 0


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


(Hours).3957 .00 -.39568

N 44 37

S.E. .03549 .00

Mode .50 .00



218




(Hours).00 .2292 .22919

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 significantly lesser than that of manual users.

OTHER TABLES: Time and Cost of Tax Payment



(online)

Comparison

(manual)

Total

0 37 0 37

100.0% .0% 45.7%

1 0 44 44

.0% 100.0% 54.3%

Total 37 44 81

100.0% 100.0% 100.0%


Had to wait excessively for availing service in any of the trips Comparison (manual) Total

Yes 8 8

18.2% 18.2%

No 36 36

81.8% 81.8%

Total 44 44100.0% 100.0%


Reasons for excessive wait Comparison (manual) Total

Long queue/ Too many applicants at office/ Badly managed queue 8 8

100.0% 100.0%

Total 8 8

100.0% 100.0%



219



Number of times log-in to avail online service Frequency Valid Percent

1 27 73.0

2 7 18.9

3 2 5.4

4 1 2.7

Total 37 100.0


Reasons to log-in more than once Frequency Valid Percent



Time taken to complete online transaction was excessive Frequency Valid Percent

Yes 10 27.0

No 27 73.0

Total 37 100.0


Reasons for excessive time Frequency Valid Percent



Total 10 100.0


Paid bribe directly to officials Treatment

(online)

Comparison

(manual)

Total

No 37 44 81

100.0% 100.0% 100.0%

Total 37 44 81

100.0% 100.0% 100.0%



220




Overall Assessment Computerized Manual Change

(C-M)

Significance

Time and effort in filing returns 3.21 3.28 -.064 NS

N 103 90

S.E. .082 .082

Cost incurred in filing returns 3.26 3.34 -.081 NS

N 104 88

S.E. .104 .097

Design and layout of forms (templates in case of online 2.92 3.25 -.325 *

N 106 8

S.E. .112 .412

Time and effort in tax payment 3.14 3.36 -.215 *

N 71 90

S.E. .095 .079

Security of monetary transactions 3.45 3.57 -.117 NS

N 69 90

S.E. .112 .091

Overall quality of service 3.57 3.85 -.286 NS

N 111 89

S.E. .083 .087

Overall quality of governance 3.45 3.47 -.016 NS

N 111 90

S.E. .106 .111

Overall experience of availing service from CTD 3.80 3.60 .206 NS

N 111 89

S.E. .103 .120

Accuracy of transactions 3.39 3.37 .021 NS

N 111 90

S.E. .100 .111

Confidentiality and security of data 3.44 3.31 .127 NS

N 111 89

S.E. .105 .117

Time and effort in procuring forms 3.30 3.30 -.003 NS

N 111 90

S.E. .085 .105

Time and effort in accessing information 3.89 3.70 .195 NS

N 111 89

S.E. .107 .117

Predictability of outcome 3.37 3.29 .080 NS

N 111 90

S.E .105 .112



221



(C-M)

Significance

Clarity and simplicity of processes and procedures 3.85 3.61 .236 NS

N 111 90

S.E .108 .109

Accountability of Officials 3.24 3.22 .021 NS

N 111 90

S.E. .098 .102

Transparency in CTD 3.62 3.59 .033 NS

N 111 90

S.E. .121 .115

Knowledge of Officials 3.34 3.23 .109 NS

N 111 90

S.E. .088 .110

Ability to influence policies, rules and procedures 3.41 3.27 .139 NS

N 111 90

S.E. .095 .093


N 110 90

S.E. .110 .117

Courtesy and helpfulness of Officials 3.31 3.06 .251 *

N 111 90

S.E. .090 .102

Problem resolution 3.50 3.27 .226 *

N 111 89

S.E. .092 .097

Complaint handling mechanism 3.17 3.16 .016 NS

N 111 90

S.E. .098 .104

Convenience of working hours 3.60 3.37 .233 NS

N 110 90

S.E. .099 .104

Queuing system at CTD Office 2.92 2.92 -.004 NS

N 110 90

S.E. .106 .125

Convenience of location of office 3.75 3.77 -.019 NS

N 111 90

S.E. .126 .140

Adherence to Citizen Charter 3.14 3.14 -.009 NS

N 111 90

S.E. .083 .098

Durability and legibility of certificates/receipts 3.24 3.47 -.223 NS

N 111 90

S.E. .118 .105



222


Composite Score




Most Important


Scores

Improvement



(Column

a/ Total of

Column a)

Computer-

ized

Manual Difference

(Column c

–Column d)

Weighted

Score

(Column e

X Column

b)

Time and effort in

filing returns25 4.1% 3.21 3.28 -.064 -0.00262

Cost incurred in filing

returns14 2.3% 3.26 3.34 -.081 -0.00186

Design and layout of

forms57 9.5% 2.92 3.25 -.325 -0.03088

Time and effort in tax

payment22 3.6% 3.14 3.36 -.215 -0.00774

Security of monetary

transactions17 2.8% 3.45 3.57 -.117 -0.00328

Overall quality of

service 17 2.8% 3.57 3.85 -.286 -0.00801

Overall quality of

governance12 2.0% 3.45 3.47 -.016 -0.00032

Overall experience of

availing service from

CTD

12 2.0% 3.80 3.60 .206 0.00412

Accuracy of

transactions18 3.0% 3.39 3.37 .021 0.00063

Confidentiality and

security of data9 1.5% 3.44 3.31 .127 0.001905

Time and effort in

procuring forms

33 5.5% 3.30 3.30 -.003 -0.00017

Time and effort in

accessing information36 6.0% 3.89 3.70 .195 0.0117

Predictability of

outcome9 1.5% 3.37 3.29 .080 0.0012

Clarity and simplicity

of processes and

procedures

20 3.3% 3.85 3.61 .236 0.007788

Accountability of

Officials18 3.0% 3.24 3.22 .021 0.00063




223




Most Important


Scores

Improvement



(Column

a/ Total of

Column a)

Computer-

ized

Manual Difference

(Column c

–Column d)

Weighted

Score

(Column e

X Column

b)

Knowledge of

Officials8 1.3% 3.34 3.23 .109 0.001417

Ability to influence

policies, rules and procedures through

feedback

6 1.0% 3.41 3.27 .139 0.00139


Courtesy and

helpfulness of Officials24 4.0% 3.31 3.06 .251 0.01004


Complaint handling

mechanism13 2.2% 3.17 3.16 .016 0.000352

Convenience of

working hours15 2.5% 3.60 3.37 .233 0.005825

Queuing system at

CTD Office 35 5.8% 2.92 2.92 -.004 -0.00023

Convenience of

location of office38 6.3% 3.75 3.77 -.019 -0.0012

Adherence to Citizen

Charter 3 .5% 3.14 3.14 -.009 -0.000045

Durability and

legibility of

certificates/receipts

25 4.1% 3.24 3.47 -.223 -0.00914




224




Suggestions for improving e-services Responses Percent of Cases Persent




behalf of clients74 9.7% 36.8%

Maintenance of website should not be done during office hour 38 5.0% 18.9%

CTD officials should be given adequate training, so that the 44 5.8% 21.9%

Involve more banks in e-payment 113 14.8% 56.2%Provide templates (w.r.t. returns) that can perform data

verification offline82 10.7% 40.8%


communicated to users99 13.0% 49.3%

Others 1 .1% .5%

Total 763 100.0%


Suggestions to increase use of e-service Responses Percent of Cases Percent

Awareness campaigns on online services for dealers 144 38.7% 71.6%Establishment of common service centres to facilitate e-services fro

all95 25.5% 47.3%


Others 2 .6% 1%

Total 372 100.0%



Gujarat


2010



227

Acknowledgments





IIM, Ahmedabad.


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


gratitude to them.


Director, RDI



228

Table of Contents

1.0 Introduction ..............................................................................................................................231


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 A–I: Quasi-Experimental Design: Nonequivalent Groups Design (Post-test Only) ...259

Annexure A–II: QUASI-EXPERIMENTAL DESIGN: PROXY PRETEST DESIGN ...............260

Annexure B: Listing Schedule .....................................................................................................261

Annexure C: Interview Schedule for Dealers (Optional) .............................................................263

Annexure D: Interview Schedule for Dealers (Mandatory) .........................................................270

Annexure E: Interview Schedule for CTPs (Optional) ................................................................276

Annexure F: Interview Schedule for CTPs (Mandatory) ............................................................282

Annexure G: Field Work ..............................................................................................................288

Annexure H: Tables - Dealers Using Optional Online Services .................................................289

Annexure I: Tables - Dealers Using Mandatory Online Services ............................................306

Annexure J: Tables - CTPs Using Optional Online Services ....................................................317

Annexure K: Tables - CTPs Using Mandatory Online Services .................................................332



229








230

Executive Summary

The Commercial Taxes Department of Gujarat has introduced some online services for dealers.

Major services include e-filing 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 findings of this survey.


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.


Preparation of documents: With respect to total cost of preparation of documents, there isn’t any

significant difference between online and manual modes of service delivery.



service, therefore, has not been successful in terms of eliminating visits to office. In terms of total

elapsed time in availing service, there isn’t any significant difference between the two modes.


submission of hard copies of returns). Moreover, online templates should be made much more user


Time, Effort and Cost of Availing Service: Obtaining Statutory Forms

This online service has had significant impact – it has eliminated trips to office for obtaining statutory

forms (as it is delivered to dealers by courier service) and significantly reduced bribes (as there is no

need for user to meet officials). However, total elapsed time in availing service is significantly higher

in the case of online mode – CTD must ensure that forms are delivered within 15 days of receipt of

application.



231

Impact Assessment of Commercial Taxes Computerization 2010-Gujarat

1.0 Introduction









Pradesh and Tamil Nadu. This report will discuss, in detail, impact of commercial taxes e-governance

projects in Gujarat.






Commercial Taxes Department (CTD) of Gujarat has introduced many online services for dealers

including filing 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 thestudy has five major sections, each with specific objectives:

1. User Profile: To form a profile 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


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


governance.

5. Suggestions: In this section we have captured suggestions of users on improving online services


__________

1Electronic service delivery launch date: November 2006

2Electronic service delivery launch date: April 2009

3Electronic service delivery launch date: July 2008



232





Manual Online Manual Online

Mandatory Online Services

Application of statutory forms4 100% 100%

Application for Registration/Cancellation5 100% 100%

Application for Refunds6 100% 100%

Optional Online Services

Filing of returns (1/4/2006 to 5/6/2009) 88.46% 11.54% NA NA

Payment NA NA NA NAInformation Dissemination NA NA NA NA

Source: Commercial Taxes Department, Gujarat



1. 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

2. There were three mandatory online services: application of statutory forms, application for

registration/cancellation and application for refunds and three optional online services: filing ofreturns7 , payment8 and information dissemination

3. 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, filing 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, 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

__________

4Only application can be made online – forms are send through courier service. Online application for statutory and other forms started in July 20085Only application can be made online – it is not an end-to-end service6Only application can be made online – it is not an end-to-end service (since October 2008)7E-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 crore8Since this service was introduced, 1430 dealers have availed e-payment - separate figures 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)



233


II. Proxy Pretest Design for Mandatory Online Services


activity level and geographical location for selection of Divisions, Ranges and Ghataks. Please refer



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. Interview schedule for dealers: optional online services

2. Interview schedule for dealers: mandatory online services

3. Interview schedule for CTPs: optional online services

4. Interview schedule for CTPs: mandatory online services

Interview schedules are given in Annexure C - F.


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 CTP’s assistance was taken (partially/



was interviewed.

3. Address of CTP - in case CTP’s assistance was sought

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 field work are given in Annexure G.

1.5 Outline of Report

The report has five sections – User Profile, 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:



234



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.


Users Of Optional Online Services



Users Of Mandatory Online Services

Dealers 192

Commercial Taxes Practitioners 74


Data obtained from Commercial Taxes Department, Gujarat showed that the number of users of

optional online services, especially filing of returns, is limited (Please refer Table 1). Therefore one

of the objectives of this study was to find out the reasons for low usage of online services.


Dealers: Among the comparison group 45.6% were not aware of online services – this highlights theneed 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 office

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 access to hardware/software



• Online process is faster



235


• 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.


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 weren’t

sufficient responses for them – it may be noted that services like registration and refunds are notfrequently 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.


Dealers registered with the CTD are required to file 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 dataentry in online template.







are given below:



236



Manual Online




department


to CTD. After verification of return documents

by the clerk/CTI, the dealer receives a receipt

of submission









some dealers take a print out of the template

and fill it up manually













given in Tables 4 &5. Please refer Annexure H & J for details.


In this section we shall examine how online filing of returns has impacted dealers and CTPs –

quantitative data obtained through the survey and qualitative data from filed observations shall be

used in conjunction for this purpose.



237





Dealer 5.5361 4.6443 -.89187 *

CTP 2.9527 3.2196 .26689 NS

Dealers: Total man-hours spent in preparation of documents are significantly lower for online

dealers.

CTPs: There is no significant difference between the two modes as far as total man-hours for

preparation of documents is concerned.


5.5361

4.6443

-0.89187

2.9527

3.2196

0.26689

-2

-1

0

1

2

3

4

5

6

Dealers CTPs


____________

4This includes man-hours spent in compiling data and man-hours were spent for data entry in online template



238





Dealer 659.8494 629.4393 -30.41009 NS

CTP 210.1486 204.5541 -5.59459 NS

With respect to total cost of preparation of documents, there isn’t any significant difference between

the two modes of service delivery.


-30.41009

629.4393659.8494

-5.59459

204.5541210.1486

-100

0

100

200

300

400

500

600

700

Delers CTPs


__________

10This includes amount spent as salary/wages for preparation of documents, expenses on stationery, cost of Internet, cost of Statutory Forms and other




239






Dealer 1.42 1.25 -.173 **

CTP 1.46 1.42 -.041 NS

Dealers: Both manual and online users have to make at least one trip to CTD office. 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.

Number of Trips

1.25

1.42

-0.173

1.46

1.42

-0.041

-0.4

-0.2

0

0.2

0.4

0.6

0.8

1

1.2

1.4

1.6

Dealers CTPs




240





Dealer 52.95 47.86 -5.09 NS

CTP 57.2297 64.9324 7.70270 NS

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


52.95 47.86

-5.09

7.7027

64.932457.2297

-10

0

10

20

30

40

50

60

70

Dealers CTPs


__________

11Time spent in queue and transaction time at counter



241





Dealer 42.51 73.74 31.228 **

CTP 44.42 57.43 13.014 *

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.

__________



service

31.228

73.74

42.51

13.014

57.43

44.42

0

10

20

30

40

50

60

70

80

Dealers CTPs




242


Total payment made13for Filing Returns



Dealer 306.4 298.05 -8.357 NS

CTP 43.24 25.68 -17.568 NS

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


-8.357

298.05

306.4

25.6843.24 -17.568

-50

0

50

100

150

200

250

300

350

Dealers CTPS


__________


functionaries



243



Table 10: Time in availing service through manual process


Dealer 2.5857 1.4839 -1.10185 NS

CTP 5.2218 5.1239 -.09784 NS

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


2.5857

1.4839

-1.10185

5.12395.2218

-0.09784

-2

-1

0

1

2

3

4

5

6

Dealers CTPs




244





Dealer 2.7348 2.2576 -.47719 NS

CTP 5.2215 6.2508 1.02932 NS

There is no significant difference between the two modes as far as total elapsed time in availing serv-

ice is concerned.


-0.47719

2.25762.7348

1.02932

6.2508

5.2215

-1

0

1

2

3

4

5

6

7

Dealers CTPs




245


4.2 Obtaining Statutory Forms (Mandatory Online Service)

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

Manual Online

To obtain CST forms dealers had to1.

give application to CTD – number of

forms required and details regarding

forms received earlier were given in the

application

After verification of application, dealers2.

were given CST Forms as per their

requirement – dealer had to collect the

forms from CTO Office

There was no service charge but dealers3.

had to pay some amount towards cost of

Statutory Forms

In manual mode dealer had to visit4.

CTO Office at least once to obtain CSTForms

To obtain CST forms (C, F, H forms etc.) the1.

dealer sends an online application to CTD

After verification of application, statutory2.

forms are dispatched to dealers through courier

service

There is no service charge. However, dealers3.

have to pay Rs. 200/ annually towards courier

charges

In online mode dealers do not have to visit4.

CTO Office to obtain CST Forms as they are

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. Paired-

Samples T Test has been used to analyze data.



246


Number of trips



Dealer 1.33 .00 -1.333 **

CTP 1.51 .00 -1.514 **

None of the online users visited CTD to obtain statutory forms. Clearly, online service has helped us-

ers - it has eliminated trips to office and thus saved waiting and travel time and travel cost.

-2

Number of Trips

-1.333

1.33

0

-1.514

0

1.51

-1.5

-1

-0.5

0

0.5

1

1.5

2

Dealers CTPs




247



service

-44.818

15.03

59.84

-31.986

13.64

45.62

-60

-40

-20

0

20

40

60

80

Dealers CTPs





Dealer 59.84 15.03 -44.818 **

CTP 45.62 13.64 -31.986 **

Online users did not visit CTD Office to obtain forms - thus saving salary/wages that would have been

spent for waiting time and travel time.

__________




248


Total payment made15

Table 15: Total payment made (INR)


Dealer 107.99 8.23 -99.765 **

CTP 72.30 0 -72.297 **

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 officials for statutory forms. Therefore, there has been

significant 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


-99.765

8.23

107.99

0

72.3

-72.297

-150

-100

-50

0

50

100

150

Dealers CTPS




249





Dealer 147.83 337.66 189.828 **

CTP 147.11 375.95 228.838 **

The data shows that there has been significant 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 Officials was also reported by•

users

In the manual mode, dealers used to visit CTD office to obtain forms - sometimes bribes were paid to

speed up the process.


189.828

337.66

147.83

228.838

375.95

147.11

0

50

100

150

200

250

300

350

400

Dealers CTPs




250



Optional Services



Analysis shows that, for few of the attributes, difference of mean scores of manual and online users

was not statistically significant. In majority of cases, however, they were statistically significant and

those attributes are given below:

Table 17: Attributes on which online service was rated higher than manual service

Dealers CTPs



Design and layout of forms3.

Time and effort in tax payment4.

Overall quality of service5.


Overall experience of availing service from7.

CTD

Accuracy of transactions8.

Confidentiality and security of data9.

Time and effort in accessing information10.

Predictability of outcome11.

Transparency in CTD12.

Ability to influence policies, rules and pro-13.

cedures

Problem resolution14.




Overall quality of service3.


Overall experience of availing service from5.

CTD

Accuracy of transactions6.

Confidentiality and security of data7.

Time and effort in accessing information8.

Predictability of outcome9.

Transparency in CTD10.


Table 18: Attributes on which online service was rated lower than manual service

Dealers CTPs

Time and effort in procuring forms Time and effort in procuring forms

Knowledge of Officials Knowledge of Officials

Problem resolution

_________




251


Mandatory Services

Dealers and CTPs were asked to rate some attributes w.r.t mandatory services provided by CTD on a

five 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 officials). In the case of rest of the attributes,

difference was not statistically significant.

Composite Score



The graph clearly shows that users of mandatory service (obtaining statutory forms) are far moresatisfied than users of optional online services (mainly filing of returns as most of the responses were

for this service).



1. Eliminate practice of submission of hard copy to CTD

Composite Score

0.379518

0.174687

-0.037488

0.252928

-0.1

-0.05

0

0.05

0.1

0.15

0.2

0.25

0.3

0.35

0.4

0.45

Optional Services Usersl Mandatory Service Users

__________

17Clarity and simplicity of processes and procedures; Knowledge of Officials; Dependence on CTPs



252


2. Server speed should be increased

3. CTD officials should be given adequate training, so that they can handle queries on online

services efficiently

4. Involve more banks in E-payment

5. Changes in processes/templates should be immediately communicated to dealers


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. Local language interface needed for online services

2. E-payment should be allowed through credit and debit cards


As part of the study we interviewed officials of CTD at the Ghatak level. Information gathered from


1. Benefits of e-governance project:

Saving time and cost: CTD has benefited from online filing 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:


Some offices do not have system specialists who can handle glitches•

Server speed should be increased•


Filing Returns





253



entry), if there is an error (usually syntax error), the online application will not accept thetemplate. 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 up-

loading 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 office: Online dealers have to submit hard copy of online returns






Many are reluctant to use it because they believe that digital signature is not secure –• it could

be hacked and misused






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. Officials must process applications and dispatch statutory forms ASAP – forms should be

delivered within 15 days of receipt of application.



254


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:





Application of statutory forms18 100% 100%



Optional Online Services

Filing of returns (1/4/2006 to 5/6/2009)21 88.46%

(3,34,857 dealers) 11.54%

(43,692 dealers) NA NA

Payment22 NA NA NA NAInformation Dissemination23 NA NA NA NA


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 im-

pact assessment of Optional Online Services (Please refer Annexure A– I).

Treatment Group has been defined 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.

__________ 18Only application can be made online – forms are send through courier service. Online application for statutory and other forms started in July 200819Only application can be made online – it is not an end-to-end service20Only application can be made online – it is not an end-to-end service (since October 2008)21Percentage calculated from data provided by CTD. e-returns is mandatory for dealers with annual turnover of more than one crore22Since this service was introduced, 1430 dealers have availed e-payment - separate figures 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)23Including application tracking



255



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 A–II). 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 filing

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 figure we arrive at the sample size of treatment group: at ±7% Precision Level, Confidence

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 file tax returns.

From this figure we arrive at the sample size of comparison group: at ±7% Precision Level, Confidence

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 file Tax Returns (Please see Table 1) in Gujarat. From this figure

we arrive at the sample size: at ±7% Precision Level, Confidence Level of 95% and P=.5 sample size

required is 204. Apart from this 68 CTPs are also covered.


Selection of Divisions was done on the basis of activity levels i.e. total number of dealers who have

filed Online VAT Returns (e-returns) from 1/4/2006 to 05/06/2009. Divisions were arranged indescending order of the total number of dealers who have filed Online VAT Returns. Then they were

divided in quartiles and one Division was randomly selected from each quartile.

__________

24According to our pilot study, e-return is the most frequently used online service



256



Division No. of Dealers25 Percentage26 Selected Division Number of

Respondents

Quartile 1

Div 7 10405

41.05% Div 7: Rajkot 320Div 1 7530

Total 17935

Quartile 2

Div 4 6816

29.30% Div 2: Ahmedabad 216Div 2 5984

Total 12800

Quartile 3

Div 5 5894

23.29% Div 5: Surat 192Div 3 4280

Total 10174

Quartile 4Div 6 2783

6.37% Div 6: Bhavnagar 96Total 2783

G. Total 43692 100%

Note:

Sample size in each selected Division is proportionate to the number of users in the quartile in1.

which it falls

According to calculation (Sample size of quartile = proportion of activity level X total sample2.

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.

__________

25Dealers who filed Online VAT Returns from 1/4/2006 to 05/06/2009. Source: CTD, Gujarat26

Percentage of users in a particular quartile



257


Table 3: Selection of Ranges

Selected Division Selected Range

Div 7(Rajkot)

Range 22 (Rajkot)

Range 23 (Rajkot)

Range 24 (Jamnagar)

Range 25 (Gandhidham)

Div 2 (Ahmedabad)

Range 6 (Ahmedabad)

Range 5 (Ahmedabad)

Range 4 (Ahmedabad)

Div 5 (Surat)

Range 18 (Valsad)

Range 15 (Surat)

Range 17 (Surat)Range 16 (Surat)

Div 6 (Bhavnagar)Range 19 (Bhavnagar)

Range 21 (Junagadh)

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 – Officials 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 Respondent ToolOptional Online Services

Nonequivalent Groups Design Dealers (Treatment and Comparison) Interview Schedule

Nonequivalent Groups Design CTPs (Treatment and Comparison) Interview Schedule


Proxy Pretest Design Dealers Interview Schedule (recall method)

Proxy Pretest Design CTPs Interview Schedule (recall method)



258




Selected Division Selected Range No. of Ghataks Sample Size/

Ghatak

Sample Size/

Ghatak for

Mandatory

Services

Sample Size/Ghatak for

Optional Services

Treatment Comparison

Div 7(Rajkot)

Range 22

(Rajkot)

4 Ranges X 2 = 8 320/8 = 4010 Dealers

4 CTPs

10 Dealers

3 CTPs

10 Dealers

3 CTPs

Range 23

(Rajkot)

Range 24

(Jamnagar)Range 25

(Gandhidham)

Div 2 (Ahmedabad)

Range 6

(Ahmedabad)

3 Ranges X 2 = 6 216/6 = 369 Dealers

3 CTPs

9 Dealers

3 CTPs

9 Dealers

3 CTPs

Range 5

(Ahmedabad)

Range 4

(Ahmedabad)

Div 5 (Surat)

Range 18

(Valsad)

4 Ranges X 2 = 8 192/8 = 246 Dealers

2 CTPs

6 Dealers

2 CTPs

6 Dealers

2 CTPsRange 15 (Surat)

Range 17 (Surat)Range 16 (Surat)

Div 6 (Bhavnagar)

Range 19

(Bhavnagar)2 Ranges X 2 = 4 96/4 = 24

6 Dealers

2 CTPs

6 Dealers

2 CTPs

6 Dealers

2 CTPsRange 21

(Junagadh)

4 Divisions 13 Ranges26 Ghataks

618 Dealers,

206 CTPs

and 52 CTD

Officials27

206 Dealers

74 CTPs

206 Dealers

66CTPs

206 Dealers

66CTPs

__________

27We will also interview 2 officials/Ghatak to understand how the project has impacted them – service providers. Thus 52 Officials will be covered.



259


Annexure A–I


(Post-test Only)

N X O N X O Each group is described on a single line (i.e., treatment group on top, comparison group at the

bottom)


groups)






think are similar as the treatment and control groups. In education, we might pick two comparableclassrooms or schools. In community-based research, we might use two similar communities. We




lottery.





Reference





260


Annexure A–II

QUASI-EXPERIMENTAL DESIGN: PROXY PRETEST DESIGN 0-1 X 0-2

O - 1 is administration of a measure (recollection)


O - 2 is administration of a measure (current)

The proxy pretest design looks like a standard pre-post design. But there’s 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 find 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





261


Annexure – B

Gujarat- Listing Schedule for Dealers


Division

Range

Ghatak


< 50 lakhs………………………………………………….1

50 lakhs – 1 crore…………………………………………2

> 1 crore…………………………………………………….3






Mandatory Services Availed


Application for Statutory Forms Yes-1; No-2 Manual -1; Online – 2; Both – 3 In-house - 1, Partial - 2, CTP - 3

Application for Registration Yes-1; No-2 Manual -1; Online – 2; Both – 3 In-house - 1, Partial - 2, CTP - 3

Application for Cancellation Yes-1; No-2 Manual -1; Online – 2; Both – 3 In-house - 1, Partial - 2, CTP - 3

Application for Refunds Yes-1; No-2 Manual -1; Online – 2; Both – 3 In-house - 1, Partial - 2, CTP - 3



Date:

__________

28With phone numbers and nearest landmark 29Circle responses30Completely in-house – 1; Partially in-house – 2; Completely outsourced to CTP – 331Should be considered completely in-house only if both manual and online services are done in-house32

With phone numbers and nearest landmark



262


Gujarat- Listing Schedule for CTPs


Division

Range

Ghatak





Payment Yes-1 No-2 Manual -1 Online - 2

Seeking Information Yes-1 No-2 Manual -1 Online - 2


Application for Statutory Forms Yes-1 No-2 Manual -1 Online – 2 Both – 3

Application for Registration Yes-1 No-2 Manual -1 Online – 2 Both – 3

Application for Cancellation Yes-1 No-2 Manual -1 Online – 2 Both – 3

Application for Refunds Yes-1 No-2 Manual -1 Online – 2 Both – 3


Date:

__________

33With phone numbers and nearest landmark

34Circle responses



263


__________ 35

As per the listing exercise 36As per Commercial Tax Department records

Annexure – C

Gujarat: Interview Schedule For Dealers

(Optional Online Services)

IDENTIFICATION DETAILSA.

Sl. No. State State Code District District

Code

Date of Interview (DD/

MM)

Respondent’s Name & Designation


Land : Town/Vil-

lage


Urban………….2

Mobile:

TIN Group35 Division Division Code

Treatment (online)………..…1


Interviewer Editor Supervisor Range Range code

Name Name Name

Code Code Code Distance from Ghatak Office

(Km.)

Ghatak Ghatak code


DEALER PROFILEB.

1B. Please specify the Constitution of your enterprise Proprietor……………………………….…1







Others (Specify)

2B. Please specify the type of business21 Manufacture…………………………….…1

Wholesale…………………………….……2

Retail………………….……………………3

Export…………………………….………..4



Leasing………………………….…………7Hotels………………………………………8

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 Fi-

nancial Year: 2008-09 (INR)

Tax Registered Amount Paid (INR)

VAT Yes-1 No-2

CST Yes-1 No-2

Entry Tax

Others (Specify)



264


5B. Please specify the mode in which Books of Accounts

are maintained within the organization

Manual …………………………..……..….1

Computerized……………………..……….2 Not maintained at all……………………….3

6B. Number of staff in your organization who are in-

volved in activities related to Commercial Taxes


1C. Are you aware of online services provided by Commercial

Taxes Department?

Yes - 1

No - 2 Part D



Newspaper…………………….……………………..1

Television…………………………………………….2

Other Dealers………………………………………..3

CTPs…………..…………………………..…………4


Others (Specify)


Taxes Department?




Application for refund………...………………………3




Others (Specify)

4C. Have you used any of the online services provided by Com-

mercial Taxes Department?

Yes – 1

No – 2 7C


frequency of useFrequency of Use


Monthly………………….…… 2



Others (Specify)


Registration (application) Yes-1 No-2








PLEASE PROCEED TO PART D AFTER ANSWER-

ING THIS QUESTION




Fewer visits to Commercial Taxes Department….4

Online process is more transparent……………….5

It is mandatory……………………………………….6

Others (Specify)











Others (Specify)



265





A B

1D. Services Availed in Last 90 Days: (Only Online services for Treatment Group and only

Manual Services for Comparison Group)

Filing Returns……………………………………………………………………………1

Payment…………………………………………………………………………….2

Seeking information (including application tracking)…………………3 15D













Others (Specify)


6D. How many man-hours were spent in completing various forms and preparing supportingdocuments for manual filing 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




9D. Please calculate the amount spent as salary/wages for preparation of documents for filing

returns (Total man-hours spent X wage per man-hour) {INR}









15D. How many trips did you need to make for the service – including trips for error correc-

tion?

__________

37

Ledgers, CDs, printing paper, printing ink, carbon paper etc. 38 Internet charges based on hours of internet used for this particular service



266


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 certificate………………………………………………….………….2

To correct error in certificate/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 fulfill requirement of physical presence……………………………………….8

Others (Specify)


I

II

III

IV

V

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)


Yes – 1

No – 2 20D


Long queue…………………………………………………….…………………1

Officials of CTD are inefficient (slow in processing)………………………………….2

Processes are too complex & takes lot of time to complete……………………..…….3

Too many applicants at office………………………………………………………….4

Badly managed queue…………………………………………………………………5

Some windows/counters were not operational…………………………………………6

Power breakdown……………………………………………………………………….7

Computer/network connectivity failure………………………………………………….8

Others (Specify)


21D. Please specify the travel cost incurred in making a round trip to Bank/Treasury (INR)




24D. Please specify the travel time spent in making a round trip to Bank/Treasury (Min.)




MANUAL USERS]



267


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



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]


Yes – 1; No – 2 31D [NOT APPLICABLE FOR MANUAL USERS]


Server is slow……………………………………………………………….………1

Processes are complex and time consuming……………………………………2

Errors occur while uploading template……………………………………………3Others (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, PREPARA-

TION OF SUPPORTING DOCUMENTS AND DATA ENTRY





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 filling forms, preparation of supporting docu-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

Manual

Process

Manual

Process


Total Total


Yes-1; No-2 Part E






Others (Specify)


On a 5 point scale (Dissatisfied-1; Somewhat dissatisfied-2; Neutral-3; Somewhat satisfied-4; Very satisfied-5) please rate the follow-


FILING OF RETURNS



__________ 39Includes 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



268


PAYMENT OF TAX

4E. Time and effort in tax payment 5E. Security of monetary transactionsCOMMON ATTRIBUTES




CTD





dures










24E. Queuing system at CTD Office 25E. Convenience of location of office (acces-

sibility and ambience)



29E. Among the above given factors please list the three factors that you consider the most impor-

tant


F. SUGGESTIONS48



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 Consultant’s Internet Banking A/C…

…………………………………………..………………………………………………………………………………..….c

Maintenance of website should not be done during Office Hours of Traders/Tax Consultants………………………….d

CTD officials should be given adequate training, so that they can handle queries on online services efficiently……...e

Involve more Banks in E-payment……………………………………………………………………………………….f

Provide templates(w.r.t. returns) that can perform data verification offline…………………………………………………g

Changes in processes/templates should be immediately communicated to dealers……………………………………....h

Others (Specify)

__________


convenience of obtaining service41Governance is understood as transparency, accountability and corruption-free working42Understanding and awareness of the basis on which decisions affecting you/other users are taken by officials43Very corrupt-1; Somewhat corrupt-2; Neutral-3; Somewhat less corrupt-4; Not at all corrupt-544Mechanism to rectify inadvertent errors in forms/documents submitted by Dealers to CTD e.g. computational errors/wrong figures45Hours of service in case of online services46Adherence of the time frame for service delivery (elapsed time) to that specified in citizen’s charter 47Very much dependant -1; Somewhat dependant -2; Neutral-3; Somewhat less dependant-4; Not at all dependant-5




269




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)



270


Annexure – D

Gujarat: Interview Schedule for Dealers

(Mandatory Online Services)

G. IDENTIFICATION DETAILS


Code

Date of Interview (DD/MM) Distance from Ghatak Office

(Km.)


Land : Town/Village Code Rural…………..1

Urban………….2

Mobile:

TIN Respondent’s Name & Designation Division DivisionCode


Name Name Name

Code Code Code Ghatak Ghatak code


H. DEALER PROFILE






Co-operative Society……………………..6Government Undertaking………………..7

Others (Specify)


Wholesale…………………………….……2

Retail………………….……………………3

Export…………………………….………..4



Leasing………………………….…………7

Hotels………………………………………8

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)


(INR)

VAT Yes-1 No-2

CST Yes-1 No-2

Entry Tax

Others (Specify)

__________

49 As per Commercial Tax Department records



271


5B. Please specify the mode in which Books of Accounts are


Manual …………………………..……..….1

Computerized……………………..……….2 Not maintained at all……………………….3




1C. Please specify the first source of awareness about online services

provided by Commercial Taxes Department

Newspaper…………………….……………………..1

Television…………………………………………….2

Other Dealers…………………………………….…..3

CTPs…………..…………………………..…….……4

Commercial Tax Dep. Official……………….…...….5

Others (Specify)

2C. Which are the online services provided by Commercial Taxes

Department?





Filing Returns…………………………………………4Payment of Taxes…………………………………...…5

Information Dissemination………………………..…..6

Others (Specify)

3C. Please give details regarding online services used and frequency

of use

Frequency of Use


Monthly………………….…… 2


Annually……………………....6

Others (Specify)





Application for Statutory

Forms

Yes-1 No-2










It is mandatory……………………………………..6

Others (Specify)


Please provide the following details with reference to maximum of two

services that you have availed through online and manual modes:

Online Manual Online Manual

1D. Services Availed:

Application for issue of statutory forms…....1

Application for registration……………….2

Application for cancellation………....……3

Application for refunds………………………4

2D. Date of availing service – specify month and year









Others (Specify)



272


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. How many man-hours were spent in completing various forms and

preparing supporting documents?

6D. 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 Office

for the service – including trips for error correction?


Why did you have to make more that one trip?

It was required – as per CTD procedure…………………..……1


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)

14D. Do you think you had to wait excessively for availing service in

any of the trips?

Yes – 1

No – 2 16D

12D. Purpose of each trip and time spent

waiting at CTD Office (Including time

spent in queue & transaction time at

counter) for availing service - (min)

To submit documents……………..…1

To collect certificate………………...2

To correct error in certificate/document

issued by CTD...........……………….3To correct errors in documents submit-

ted 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 fulfill requirement of physical

presence………..............…………….8

Others (Specify)

Trip Purpose Time Purpose Time Purpose Time Purpose Time

I

II

III

IV

V

__________




273



Long queue…………………………………….…………………1Officials of CTD are inefficient (slow in processing)………….2

Processes are too complex & takes lot of time to complete……3

Too many applicants at office………………………………….4

Badly managed queue…………………………………………5

Some windows/counters were not operational…………………6

Power breakdown……………………………………………….7

Computer/network connectivity failure……………………….8

Others (Specify)

16D. Please specify the travel cost incurred in making a round trip to

CTD Office (INR)

17D. Total travel cost incurred in availing service (number of trips X

travel cost per trip) INR

18D. Please specify the travel time spent in making a round trip to CTD

Office (Min.)19D. Total travel time spent in availing service (number of trips X

travel time per trip) Min.

20D. How many times did you log-in to avail online service?

21D. 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)

22D. What was the total time taken to complete transaction Online - it

does not include time taken for data entry? (Min)

23D. Do you think that the time taken to complete online transaction

was excessive?

Yes – 1; No – 2 25 D24D. 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)

25D. 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}


FORMS, PREPARATION OF SUPPORTING DOCUMENTS

AND DATA ENTRY

26D. Service Charge paid to department for which you got a receipt?

(INR)27D. Service charge paid to Tax Consultant for facilitating service from

CTD Office (INR)

(NOT APPLICABLE IF DONE IN-HOUSE: PLEASE SEE

3D)

28D. What was the total payment51 made by you for availing the ser-

vice? (INR)

29D. 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 ap-

plying to actually receiving the service applied for? (this does not

include time taken for filling forms, preparation of supporting


___________

51Includes a) service charge paid to intermediary/agency, b) amount paid to department for which receipt was given, and c) amount paid as bribe to




274



Yes-1; No-2 Part E31D. For what purpose did you pay the bribe? (Multiple rspponses)

To avoid audit assessment by CT Department………………….1

To influence functionaries to manipulate records in your favor…2

To expedite the process........................................………………3

Others (Specify)



ing attributes:O M O M

1E. Cost of availing service 2E. Time and effort in availing service


CTD

4E. Confidentiality and security of data

5E. Effort in preparation of documents 6E. Overall quality of governance

7E. Overall quality of service52 8E. Accuracy of transactions


dures



13E. Predictability of outcome 14E. Complaint handling mechanism54& problem resolution



16E. Convenience of location of center/office (accessibility

and ambience)

17E. Courtesy and helpfulness of Officials 18E. Convenience of working hours

19E. Queuing system at CTD Office 20E. Level of corruption

21E. Adherence to Citizen Charter 55 22E. Dependence on CTPs


24E. Among the above given factors please list the three factors that you consider the most important


L. SUGGESTIONS8



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 Consultant’s Internet Banking A/C

…............................................................................................................................................…3

Maintenance of website should not be done during Office Hours of Traders/Tax Consultants………....…............4

CTD officials should be given adequate training, so that they can handle queries on online services efficiently…..5

Involve more Banks in E-payment……………………………………................................................................…..6

Provide templates(w.r.t. returns) that can perform data verification offline……….……………………...........……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 rectified………………...........……9

Others (Specify)

__________


convenience of obtaining service53Understanding and awareness of the basis on which decisions affecting you/other users are taken by officials54 Including service provided by Call centre/Helpline55 Adherence of the time frame for service delivery (elapsed time) to that specified in citizen’s charter 56This part is for all users - manual and online



275




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)



276


Annexure – E

Gujarat: Interview Schedule for CTP

(Optional Online Services)

M. IDENTIFICATION DETAILS

Sl. No. State State

Code

District District

Code


Address with landmark Location of OfficeTown/

Village


Urban………….2Phone Group57 Division Division Code

Land Line : Mobile: Treatment (online)………..…1


Interviewer Editor Supervisor Range Range code Name Name Name


(Km.)

Ghatak Ghatak code


N. Profile of Tax Consultant

1B. Educational qualification of Tax Consultant FICA. - 1

LLB - 2

Others (Specify)

2B. Years of Experience as Tax Consultant


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


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 Part C

7B. Has the Tax Consultant used any online E-Gov. ser-

vice

Yes – 1

No - 2

__________




277


O. AWARENESS AND USAGE OF ONLINE SERVICES


Taxes Department?

Yes - 1

No - 2 Part D

2C. Please specify the first source of awareness about online ser-

vices provided by Commercial Taxes Department

Newspaper…………………….……………………..1

Television…………………………………………….2

Dealers………..…………………….………………..3

Other CTPs……………..………….……..…………4

Commercial Tax Dep. Official…….………….…….5

Others (Specify)


Department?





Filing Returns…………………………………………4Payment of Taxes……………………………………5


Others (Specify)



Yes – 1

No – 2 7C

5C. Please give details regarding online services used and fre-

quency of use

Frequency of Use

Daily……………………….…….1

Weekly……………………..……2

Fortnightly……………………….3

Monthly…………………….…… 4

Quarterly…………………………5

Annually…………………………..6

Others (Specify)










PLEASE PROCEED TO PART D AFTER ANSWERING

THIS QUESTION







Others (Specify)











Others (Specify)



278


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

A B

38D. Services Availed in Last 90 Days: (Only Online services for Treatment Group and only

Manual Services for Comparison Group)

Filing Returns…………………………………………………………………1

Payment…………………………………………………………………….2

Seeking information (including application tracking)……………………3 12D





D-1: Time and Effort and Cost of Preparation of Documents for Filing Returns/Payment


documents for manual filing 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




43D. Total man-hours spent for preparation of documents for filing returns/payment (6D + 7D)


returns/payment (Total man-hours spent X wage per man-hour) {INR}

45D. Cost of stationery58 and photo copies w.r.t filing returns/payment {INR}




48D. Total cost of preparation of documents for filing returns/payment (INR)



tion?

50D. 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 certificate………………………………………......................……2

To correct error in certificate/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 fulfill requirement of physical presence……….............................………….8

Others (Specify)

Trip Pur-

pose

Time Purpose Time

I

II

III

IV

V

________ 58Ledgers, CDs, printing paper, printing ink, carbon paper etc.59

Internet charges based on hours of internet used for this particular service



279


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)


Yes – 1

No – 2 17D


Long queue……………………………………………………………................……1

Officials of CTD are inefficient (slow in processing)………………….......………….2

Processes are too complex & takes lot of time to complete……………………..…….3

Too many applicants at office………………………………………………………….4

Badly managed queue…………………………………………………………………5

Some windows/counters were not operational………………………………………..6

Power breakdown……………………………………………………………………..7

Computer/network connectivity failure……………………………………………….8

Others (Specify)










MANUAL USERS]

61D. 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


Templates had changed, therefore it had to be downloaded first…………….……3

Others (Specify)






Server is slow……………………………………………………………….………1

Processes are complex and time consuming……………………………….....……2

Errors occur while uploading template……………………………………….……3

Others (Specify)



280


__________

60 Includes a) amount paid to department for which receipt was given, and b) amount paid as bribe to department staff/functionaries61Quality of service is understood as fairness, speed of processing, accuracy of transactions, legibility and durability of certificates and printouts,

convenience of obtaining service62Governance is understood as transparency, accountability and corruption-free working63Understanding and awareness of the basis on which decisions affecting you/other users are taken by officials64Very corrupt-1; Somewhat corrupt-2; Neutral-3; Somewhat less corrupt-4; Not at all corrupt-5


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 perman-hour) {INR}






be completed, right from the date of applying to actually receiving the service applied for?

(this does not include time taken for filling forms, preparation of supporting docu-

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

Manual

Process

Manual

Process

Online

Process

Online Process

Total Total


Yes-1; No-2 Part E






Others (Specify)

Q. OVERALL ASSESSMENT On a 5 point scale (Dissatisfied-1; Somewhat dissatisfied-2; Neutral-3; Somewhat satisfied-4; Very satisfied-5) please rate the follow-


FILING OF RETURNS


3E. Design and layout of forms (templates in case of online services)PAYMENT OF TAX


COMMON ATTRIBUTES





12E. Time and effort in accessing information 13E. Predictability of outcome14E. Clarity and simplicity of processes and procedures 15E. Accountability of Officials



through feedback





281


22E. Complaint handling mechanism (including service



24E. Queuing system at CTD Office 25E. Convenience of location of office (accessibility and

ambience)

26E. Adherence to Citizen Charter 67 27E. Durability and legibility of certificates/receipts



R. SUGGESTIONS68



Eliminate practice of submission of hard copy to CTD……………………………………………………...……..a

Server speed should be increased……………………………………………………………………………………b


Internet Banking A/C……...........................................................................................................................................c

Maintenance of website should not be done during Office Hours of Traders/Tax Consultants……………………..d

CTD officials should be given adequate training, so that they can handle queries on online services efficiently…..e

Involve more Banks in E-payment……………………………………………………………………………...…..f

Provide templates(w.r.t. returns) that can perform data verification offline……………………………….…...……g

Changes in processes/templates should be immediately communicated to dealers……………………..…………..h

Others (Specify)



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)

__________

66Hours of service in case of online services67Adherence of the time frame for service delivery (elapsed time) to that specified in citizen’s charter

68

This part is for all users - manual and online



282


Annexure – F

Gujarat: Interview Schedule for CTP

(Mandatory Online Services)

S. IDENTIFICATION DETAILS


Code

Date of Interview (DD/MM) Distance from Ghatak Office

(Km.)

Address with landmark Location of Office

Town/

Village


Urban………….2

Phone Respondent’s Name &Designation

Division DivisionCode

Land Line: Mobile:


Name Name Name

Code Code Code Ghatak Ghatak code


T. Profile of Tax Consultant

Educational qualification 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


TAX



Manual Online

Number of staff in your organization who are involved in


Is the Tax Consultant computer literate? Yes – 1

No - 2 Part CHas the Tax Consultant used any online E-Gov. service Yes – 1

No - 2

U. AWARENESS AND USAGE OF ONLINE SERVICES



Newspaper…………………….……………………..1

Television…………………………………………….2

Dealers……………..………………………………..3

Other CTPs…..…………………………..…………4


Others (Specify)



283



Department?








Others (Specify)

3C. Please give details regarding online services used and frequency of

use

Frequency of Use

Daily……………………….…….1

Weekly……………………..……2


Monthly…………………….…… 4


Annually…………………………..6

Others (Specify)






Forms

Yes-1 No-2











Others (Specify)

V. TIME AND EFFORT AND COSTS OF AVAILING SERVICES

Please provide the following details with reference to

maximum of two services that you have availed through online

and manual modes:



Application for issue of statutory forms………….….1

Application for registration………………………….2

Application for cancellation…………………………3

Application for refunds………………………………4



34D. How many man-hours were spent in completing

various forms and preparing supporting documents? 35D. Please calculate the amount spent as salary/wages for

preparation of documents


36D. Cost of stationery69, photocopies and/or internet

charges w.r.t service availed {INR}

37D. Cost of Statutory Forms and other Forms – including

courier charges (INR)

(NOT APPLICABLE FOR THE SERVICE:

APPLICATION FOR ISSUE OF FORMS)


__________

69

Ledgers, CDs, printing paper, printing ink, carbon paper etc.



284



39D. How many trips did you need to make to CommercialTax Office for the service – including trips for error

correction?

40D. Purpose of each trip and time spent waiting at

CTD Office (Including time spent in queue &

transaction time at counter) for availing service

- (min)

To submit documents………………………1

To collect certificate……………………….2

To correct error in certificate/document issued by

CTD……………....................…………….3

To correct errors in documents submitted byDealer/Tax Consultant…................………4

To track application……............................5

To seek information…................................6

To bank/treasury for making payment - Challan

(applicable only for payment).....................7

To fulfill requirement of physical presence...8

Others (Specify)


I

II

III

IV

V

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


incomplete………………......………………6

Others (Specify)

42D. Do you think you had to wait excessively for availing

service in any of the trips?

Yes – 1

No – 2 13D


Long queue..........………………….…………………1

Officials of CTD are inefficient (slow in processing)..2

Processes are too complex & takes lot of time to

complete……………………..……...........................3

Too many applicants at office……………………….4

Badly managed queue………………………………5

Some windows/counters were not operational……...6

Power breakdown…………………………………..7

Computer/network connectivity failure……………8

Others (Specify)



285


44D. Please specify the travel cost incurred in making a

round trip to CTD Office (INR)45D. Total travel cost incurred in availing service (number of

trips X travel cost per trip) INR

46D. Please specify the travel time spent in making a round

trip to CTD Office (Min.)

47D. Total travel time spent in availing service (number of

trips X travel time per trip) Min.


49D. 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 first……………............................……3

Others (Specify)

50D. What was the total time taken to complete transaction

Online - it does not include time taken for data entry?

(Min)

51D. Do you think that the time taken to complete online

transaction was excessive?

Yes – 1; No – 2 22 D

52D. 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)

53D. Please calculate the amount spent as salary/wages ontotal 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

54D. Service Charge paid to department for which you got a

receipt? (INR)

55D. What was the total payment70 made by you for availing

the service? (INR)

56D. 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 timetaken for filling forms, preparation of supporting



Yes-1; No-2 Part E

58D. For what purpose did you pay the bribe indicated in the

previous question? (Multiple rsp.)

To avoid audit assessment by CT Department…….1

To influence functionaries to manipulate records in

your favor……...................................................….2

To expedite the process……………………………3

Others (Specify)

__________

70Includes a) amount paid to department for which receipt was given, and b) amount paid as bribe to department staff/functionaries



286


__________ 71Much increased-1; Somewhat increased-2; No change-3; Somewhat decreased-4; Much decreased-572Much increased-1; Somewhat increased-2; No change-3; Somewhat decreased-4; Much decreased-573Much increased-1; Somewhat increased-2; No change-3; Somewhat decreased-4; Much decreased-574Governance is understood as transparency, accountability and corruption-free working75Quality of service is understood as fairness, speed of processing, accuracy of transactions, legibility and durability of certificates and printouts,

convenience of obtaining service76Understanding and awareness of the basis on which decisions affecting you/other users are taken by officials77Including service provided by Call centre/Helpline78Adherence of the time frame for service delivery (elapsed time) to that specified in citizen’s charter


W. OVERALL ASSESSMENT

Please indicate your perception about improvement on the following attributes in the computerized system vis-à-vis the manualsystem: 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


CTD4E. Confidentiality and security of data

5E. Effort in preparation of documents73 6E. Overall quality of governance74


9E. Clarity and simplicity of processes and

procedures10E. Accountability of Officials


13E. Predictability of outcome14E.

Complaint handling mechanism77& problem

resolution

15E. Ability to influence policies, rules and

procedures through feedback 16E. Level of corruption

17E. Courtesy and helpfulness of Officials 18E. Convenience of working hours19E. Queuing system at CTD Office

20E.Convenience of location of center/office





X. SUGGESTIONS79



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 Consultant’s Internet Banking

A/C……3

Maintenance of website should not be done during Office Hours of Traders/Tax Consultants……………………..4

CTD officials should be given adequate training, so that they can handle queries on online services efficiently…..5

Involve more Banks in E-payment……………………………………………………………………………...…..6

Provide templates(w.r.t. returns) that can perform data verification offline……………………......…….…...……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 rectified…………………….……9

Others (Specify)



287




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)



288


Annexure – G

Field Work

At the Ghatak Level, two locations was selected on the basis on their distance from Ghatak Office•

– one far and the other near.



than the number of dealers to be interviewed in that Ghatak – as dealers who outsource entire


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 classified as respondents for•

either Optional Online Services (treatment/control group) or Mandatory Online Services (recall

method).

Similarly, CTPs were also classified as respondents for Optional Online Services and Mandatory•

Online Services. Contact details of CTPs were collected through listing exercise among Dealers



289


Annexure – H

Gujarat: Dealers Using Optional Online Services






Total 391 100.0

Table 2: Division and range wise frequency

Division Range Treatment

(online)

Comparison

(manual)

Total

Ahmedabad

4 12 10 22

5 23 32 55

6 16 10 26

Total 51 52 103

Surat

15 14 13 27

16 11 11 22

17 6 5 1118 10 10 20

Total 41 39 80

Bhavnagar

19 12 12 24

21 12 12 24

Total 24 24 48

Rajkot

22 20 21 41

23 20 19 39

24 20 20 40

25 20 19 39

28 0 1 1

Total 80 80 160


Location Treatment (online) Comparison

(manual)

Total

Rural10 9 19

5.1% 4.6% 4.9%

Urban186 186 372

94.9% 95.4% 95.1%

Total196 195 391

100.0% 100.0% 100.0%



290




Constitution of your enterprise Treatment (online) Comparison (manual) Total


62.2% 76.4% 69.3%

Partnership46 43 89

23.5% 22.1% 22.8%


9.2% .5% 4.9%


3.1% .0% 1.5%

Hindu Undivided Family1 1 2

.5% .5% .5%

Cooperative Society1 1 2

.5% .5% .5%

Govt. Undertaking2 0 2

1.0% .0% .5%

Total196 195 391

100.0% 100.0% 100.0%


Type of business Treatment (online) Comparison (manual) Total

Manufacture64 47 111

32.7% 24.1% 28.4%


63.3% 56.4% 59.8%

Retail7 34 41

3.6% 17.4% 10.5%

Hire purchase0 1 1

.0% .5% .3%

Work contract1 3 4

.5% 1.5% 1.0%

Total196 195 391

100.0% 100.0% 100.0%


Registered for VAT Treatment (online) Comparison (manual) Total

Yes196 195 391

100.0% 100.0% 100.0%

Total196 195 391

100.0% 100.0% 100.0%



291



Registered for CST Treatment (online) Comparison (manual) Total

Yes62 26 88

31.6% 13.3% 22.5%

No134 169 303

68.4% 86.7% 77.5%

Total196 195 391

100.0% 100.0% 100.0%





Manual4 81 85

2.0% 41.5% 21.7%


98.0% 58.5% 78.3%

Total196 195 391

100.0% 100.0% 100.0%




Commercial Taxes


1121 179 300

61.7% 91.8% 76.7%

255 14 69

28.1% 7.2% 17.6%

315 2 17

7.7% 1.0% 4.3%

42 0 2

1.0% .0% .5%

≥53 0 3

1.5% .0% .8%

Total196 195 391

100.0% 100.0% 100.0%



292




Aware about online services provided byCommercial Taxes Department?

Online Manual Group

Total Treatment (online) Comparison (manual)

Yes196 106 302

100.0% 54.4% 77.2%

No0 89 89

.0% 45.6% 22.8%

Total196 195 391

100.0% 100.0% 100.0%


First source of awareness about online services Treatment(online)

Comparison(manual)

Total

Newspaper 20 13 33

10.2% 12.3% 10.9%

Television5 1 6

2.6% .9% 2.0%

Dealers7 1 8

3.6% .9% 2.6%

CTPs102 71 173

52.0% 67.0% 57.3%

Commercial tax department official 62 20 82

31.6% 18.9% 27.2%

Total196 106 302

100.0% 100.0% 100.0%


Online services of CTD Online Manual Group

Total Treatment (online) Comparison (manual)


30.1% 45.3%


72.4% 86.8%

Application for refund78 45 123

39.8% 42.5%


97.4% 99.1%


76.0% 79.2%


58.7% 74.5%

Total196 106 302

100.0% 100.0% 100.0%



293



Used any of the online services provided by CTD Treatment

(online)

Comparison

(manual)

Total

Yes196 1 197

100.0% .9% 65.2%

No0 105 105

.0% 99.1% 34.8%

Total196 106 302

100.0% 100.0% 100.0%


Reasons for using online services Treatment

(online)

Comparison

(manual)

Total

Online process is faster 85 1 86

43.4% 100.0%

Online process is more secure67 0 67

34.2% .0%

Fewer errors in online process59 0 59

30.1% .0%

Fewer visits to commercial taxes department136 1 137

69.4% 100.0%

Online process is more transparent47 0 47

24.0% .0%

It is mandatory 81 0 81

41.3% .0%

Total 196 1 197


Reasons for not using online services Comparison (manual) Total


81.0%


8.6%


15.2%


1.9%


54.3%


1.0%


7.6%


18.1%

Total 105 105



294




Services Availed in Last 90 Days Q2D A Mode of service

Total Online Manual

Filing returns 173 166 339

Payment 3 24 27

Seeking Information (including application tracking) 20 5 25

Total 196 195 391


Services Availed in Last 90 Days Q2D B Mode of serviceTotal Online Manual


Payment 10 150 160

Total 12 151 163

The tables given above show that there were sufficient 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 re-




Man-hours were spent in compiling data 5.5361 3.0925 -2.44366 **

N 166 173

S.E. 0.30823 0.17129

Mode 4.00 2.00

Comment: Man-hours spent in compiling data is sig-

nificantly lower for online dealers.

Man-hours were spent for data entry in online template

NA. 1.5518

N 173

S.E. . 0.28843

Mode 1.00

Total man-hours for preparation of documents 5.5361 4.6443 -.89187 *

N 166 173

S.E. 0.30823 0.39802

Mode 4.00 3.00

Comment: Total man-hours spent in preparation of documents are significantly lower for online dealers.




295



N 166 173

S.E. 7.639 25.727

Mode 100 100

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 filing of returns. It

may be noted that employees who are proficient in using computers generally get higher salary/wages than those who

do not possess this skill.


(INR)

40.3 30.32 -9.977 **

N 166 173

S.E. 2.445 2.645

Mode 50 20

Comment: Manual users have spent significantly 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 173

S.E. . 1.334

Mode 15


courier charges (INR) 11.34 32.13 20.790 **

N 166 173

S.E. 3.143 4.762

Mode 0 0

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

of documents(INR)527.94 459.04 -68.893 NS

N 155 141

S.E. 22.002 35.848

Mode 500 150

Comment: Service charge paid to CTPs is lower in the case of online dealers. However, this difference is not statisti-

cally significant.

Total cost of preparation of documents (INR) 659.8494 629.4393 -30.41009 NS

N 166 173

S.E. 25.58212 42.7158

Mode 850.00 245.00a

Comment: With respect to total cost of preparation of documents, there isn’t any significant difference between the two

modes of service delivery.



296




Number of trips 1.42 1.25 -.173 **

N 166 173

S.E. 0.039 0.039

Mode 1 1

Comment: Both manual and online users have to make at least one trip to CTD office. 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. 2.58 1.73

Mode 60 60Travel cost (INR) 47.6 43.38 -4.214 NS

N 166 170

S.E. 2.376 3.148

Mode 40 20a

Travel time (Minutes) 68.01 59.5 -8.512 *

N 166 170

S.E. 3.348 3.409

Mode 60 30


service NA. 1.63

N 173

S.E. . 0.056

Mode 1


utes) NA 28.24

N 173

S.E. . 0.988

Mode 30

Comment: According to many online users the server was slow due to which the time taken to complete online trans-

action 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 thetemplate should be designed to detect errors during data entry stage itself, so that time is not wasted while uploading

the template.


availing service (INR)42.51 73.74 31.228 **

N 166 173

S.E. 2.228 4.162

Mode 25 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.



297




N 166 173

S.E. 0 0


service from CTD Office (INR)260.02 255.78 -4.238 NS

N 166 173

S.E. 27.469 37.475

Mode 0 0

Amount paid as bribe (INR) 46.3855 42.2659 -4.11965 NS

N 166 173S.E. 13.41999 9.41653

Mode 0 0


N 166 173

S.E. 28.471 38.292

Mode 0 0


(Hours)2.5857 1.4839 -1.10185 NS

N 166 173

S.E.0.70613 0.46922

Mode 1.00 1.00


(Hours)0 0.7738 .77376

N 166 173

S.E. 0 0.20763

Mode .00 .50

Total elapsed time in availing service (Hours) 2.7348 2.2576 -.47719 NS

N 166 173

S.E. 0.71876 0.50839

Mode 1.00 1.50

Comment: There is no significant difference between the two modes as far as total elapsed time in availing service is

concerned



298




Processes were related to the service outsourced Treatment

(online)

Comparison

(manual)

Total


19.1% 6.6% 13.0%


80.9% 93.4% 87.0%

Total173 166 339

100.0% 100.0% 100.0%


Reasons for depending on CTPs Treatment

(online)

Comparison

(manual)

Total


80.0% 89.7%


60.7% 47.1%


6.4% 1.3%


25.7% 12.3%

Total 140 155 295


Number of trips Treatment

(online)

Comparison

(manual)

Total

03 0 3

1.7% .0% .9%

1127 97 224

73.4% 58.4% 66.1%

240 68 108

23.1% 41.0% 31.9%

33 1 4

1.7% .6% 1.2%

Total 173 166 339

100.0% 100.0% 100.0%



299




(online)

Comparison

(manual)

Total


.0% 7.2% 4.5%

To follow up, a there was delay on the part of CTD to pro-

vide service

34 51 85

79.1% 73.9% 75.9%

Could not avail service in previous visit as there was a long

queue

1 3 4

2.3% 4.3% 3.6%

Concerned functionary was not available7 7 14

16.3% 10.1% 12.5%

Counter was not operational

1 1 2

2.3% 1.4% 1.8%

Documents/application submitted by me were incomplete0 2 2

.0% 2.9% 1.8%

Total43 69 112

100.0% 100.0% 100.0%


Had to wait excessively for availing service in any of the

trips

Treatment

(online)

Comparison

(manual)

Total

Yes26 21 47

15.3% 12.7% 14.0%

No144 145 289

84.7% 87.3% 86.0%

Total170 166 336

100.0% 100.0% 100.0%



(online)

Comparison

(manual)

Total

Long queue/ Too many applicants at office/ Badly managed

queue

1 5 6

3.8% 23.9% 12.7%


80.8% 71.4% 76.6%


3.8% 4.8% 4.3%

Computer/network connectivity failure3 0 3

11.5% .0% 6.4%

Total 26 21 47

100.0% 100.0% 100.0%



300



Number of times log-in to avail online service Treatment (online) Total

188 88

50.9% 50.9%

264 64

37.0% 37.0%

318 18

10.4% 10.4%

43 3

1.7% 1.7%

Total173 173

100.0% 100.0%

Table 26: Reasons to log-in more time

Reasons to log-in more than once Treatment (online) Total


95.3% 95.3%

Templates had changed, therefore it had to be downloaded first3 3

3.5% 3.5%

Others1 1

1.2% 1.2%

Total85 85

100.0% 100.0%


Time taken to complete online transaction was excessive Treatment (online) Total

Yes63 63

36.4% 36.4%

No110 110

63.6% 63.6%

Total173 173

100.0% 100.0%


Reasons for excessive time in online transaction Treatment (online) Total

Server is slow61 61

96.8% 96.8%


3.2% 3.2%

Total63 63

100.0% 100.0%



301




(online)

Comparison

(manual)

Total

Yes27 31 58

15.6% 18.7% 17.1%

No146 135 281

84.4% 81.3% 82.9%

Total173 166 339

100.0% 100.0% 100.0%


Purpose of bribe Treatment

(online)

Comparison

(manual)

Total

To avoid audit assessment by CT department9 4 13

33.3% 12.9%


favor

13 9 22

48.1% 29.0%

To expedite the process17 26 43

63.0% 83.9%

Others 0 2 2

.0% 6.5%

Total 27 31 58



Overall Assessment Computerized ManualChange

(C-M)Significance

Time and effort in filing returns 4.39 3.68 .710 **

N 196 174

S.E. .062 .080


N 196 173

S.E. .070 .094

Design and layout of forms 3.50 3.03 .467 **

N 172 30

S.E. .081 .169

Time and effort in tax payment 4.18 3.85 .323 **



302


Overall Assessment Computerized Manual

Change

(C-M) Significance

N 91 184

S.E. .102 .081

Security of monetary transactions 4.30 4.26 .036 NS

N 91 184

S.E. .090 .086


N 196 195

S.E. .052 .054


N 196 193

S.E. .065 .068


CTD4.13 3.37 .761 **

N 196 191

S.E. .060 .062


N 196 195

S.E. .065 .088

Confidentiality and security of data 4.52 3.99 .531 **

N 196 195

S.E. .057 .078

Time and effort in procuring forms 2.95 3.49 -.543 **

N 196 195

S.E. .085 .093

Time and effort in accessing information 4.30 3.10 1.193 **

N 196 195

S.E. .065 .091


N 196 195S.E .058 .065

Clarity and simplicity of processes and pro-

cedures3.72 3.68 .037 NS

N 196 195

S.E .072 .080


N 196 195

S.E. .076 .078


N 196 193



303


sponses were insufficient to carry out analysis.

Overall Assessment Computerized Manual

Change

(C-M) Significance

S.E. .069 .076

Knowledge of Officials 2.87 4.03 -1.163 **

N 196 195

S.E. .074 .088

Ability to influence policies, rules and pro-

cedures3.85 3.66 .191 **

N 196 195

S.E. .057 .067


N 196 195

S.E. .070 .081

Courtesy and helpfulness of Officials 3.22 3.26 -.040 NS

N 194 195

S.E. .074 .076

Problem resolution 3.29 3.05 .234 **

N 196 195

S.E. .069 .070

Complaint handling mechanism 3.38 3.42 -.040 NS

N 195 186

S.E. .088 .099


N 196 195

S.E. .063 .063

Queuing system at CTD Office 3.68 2.88 .800 **

N 195 187

S.E. .089 .081


N 196 195

S.E. .078 .079Adherence to Citizen Charter 3.47 3.63 -.158 NS

N 195 192

S.E. .084 .085

Dependence on CTPs 3.53 3.61 -.084 NS

N 196 192

S.E. .065 .075

Durability and legibility of certificates/re-

ceipts4.02 3.90 .116 NS

N 180 182

S.E. .081 .062



304


Composite Score




Most Important


ScoresImprovement


Factor Number

Percentage

(Column a

/

Total of Column

a)

Computerized Manual

Difference

(Column c

–

Column d)

Weighted

Score

(Column e

X

Column b)

Time and effort in filing re-turns

55 4.7% 4.39 3.68 .710 0.03337


Design and layout of forms 5 .4% 3.50 3.03 .467 0.001868

Time and effort in tax pay-

ment29 2.5% 4.18 3.85 .323 0.008075

Security of monetary transac-

tions63 5.4% 4.30 4.26 .036 0.001944




service from CTD18 1.5% 4.13 3.37 .761 0.011415


Confidentiality and security ofdata

26 2.2% 4.52 3.99 .531 0.011682


forms55 4.7% 2.95 3.49 -.543 -0.02552


information44 3.8% 4.30 3.10 1.193 0.045334

Predictability of outcome 7 .6% 3.99 3.37 .626 0.003756Clarity and simplicity of pro-

cesses and procedures9 .8% 3.72 3.68 .037 0.000296


Transparency in CTD 5 .4% 3.88 3.29 .592 0.002368

Knowledge of Officials 42 3.6% 2.87 4.03 -1.163 -0.04187


rules and procedures throughfeedback

43 3.7% 3.85 3.66 .191 0.007067



Officials70 6.0% 3.22 3.26 -.040 -0.0024


Complaint handling

mechanism72 6.1% 3.38 3.42 -.040 -0.00244

Convenience of working

hours46 3.9% 3.82 3.52 .298 0.011622

Queuing system at CTD

Office16 1.4% 3.68 2.88 .800 0.0112



305



Factor to be Among ThreeMost Important


Scores Improvement


Factor Number

Percentage

(Column a

/

Total of Column

a)

Computerized Manual

Difference

(Column c

–

Column d)

Weighted

Score

(Column e

X

Column b)Convenience of location of

office50 4.3% 4.26 4.28 -.022 -0.00095

Adherence to Citizen Charter 33 2.8% 3.47 3.63 -.158 -0.00442

Dependence on CTPs 46 3.9% 3.53 3.61 -.084 -0.00328



8 .7% 4.02 3.90 .116 0.000812




Suggestions to improve online services N Percent Percent of

Cases


Server speed should be increased 273 19.0% 69.8%Tax consultants should be allowed to make E-payment on behalf of their clients

– through Consultant’s Internet Banking A/C20 1.4% 5.1%


CTD officials should be given adequate training, so that they can handle queries

on online services efficiently195 13.6% 49.9%


Provide templates (w.r.t. returns) that can perform data verification offline 93 6.5% 23.8%

Changes in processes/templates should be immediately communicated to users 299 20.8% 76.5%

Total 1438 100.0%


Suggestions to increase use of e-services Responses Percent of Cases

N Percent


Establishment of common service centres to facilitate e-services to all 314 32.7% 80.3%


Total 961 100.0%



306


Annexure – I

Gujarat: Dealers Using Mandatory Online Services


Table 1: Division wise frequency

Division Range N

Ahmedabad 4 10

5 24

6 17

Total 51Surat 15 12

16 10

17 7

18 9

Total 38

Bhavnagar 19 12

21 12

Total 24

Rajkot 22 18

23 20

24 2025 20

Total 79

Table 2: Location wise frequency

Location Frequency Percent

Rural 9 4.7

Urban 183 95.3

Total 192 100.0



Constitution of enterprise Frequency Percent

Proprietor 101 52.6

Partnership 54 28.1

Private Limited Company 35 18.2

Public Limited Company 2 1.0

Total 192 100.0



307



Type of business Frequency Percent

Manufacture 67 34.9

Wholesale 112 58.3

Retail 13 6.8

Total 192 100.0


Registered for VAT Frequency Percent

Yes 192 100.0

Total 192 100.0


Registered for CST Frequency Percent

Yes 192 100.0

Total 192 100.0


Mode in which Books of Accounts are maintained

within the organization

Frequency Percent

Computerized 192 100.0




Frequency Percent

1 140 72.9

2 35 18.2

3 9 4.7

4 4 2.1

≥5 4 2.0

Total 192 100.0

SECTION C: Awareness And Usage Of Online Services

Table 9: Source of awareness on online services

First source of awareness about online services Frequency Percent

Newspaper 15 7.8

CTPs 71 37.0

Commercial tax department official 106 55.2

Total 192 100.0



308



e-Services of CTD Responses

N Percent Percent of Cases

Application for Registration 74 9.4% 38.5%

Application for issue of forms 192 24.3% 100%

Application for refund 72 9.1% 37.5%

Filing Returns 187 23.7% 97.4%

Payment of Taxes 116 14.7% 60.4%

Information Dissemination 148 18.8% 77.1%

Total 789 100.0%


e-Services of CTD Responses


Online process is faster 119 23.4% 62.0%

Online process is more secure 65 12.8% 33.9%

Fewer errors in online process 47 9.3% 24.5%

Fewer visits to commercial taxes department 130 25.6% 67.7%

Online process is more transparent 24 4.7% 12.5%

It is mandatory 123 24.2% 64.1%

Total 508 100.0%


Table 12: Time and cost of availing service


(C-M)

Significance


Number of trips 1.33 .00 -1.333 **

N 192 192

S.E. .034 .000

Mode 1 0

Comment: None of the online users visited CTD to obtain statutory forms. Clearly, online service has helped dealersin terms of reducing trips to CTD.Waiting time (Minutes) 60.44 NA

N 192

S.E. 2.14855

Mode 60


N 192

S.E. 2.374

Mode 50




309



(C-M)

Significance

N 192

S.E. 3.589

Mode 60

Number of times user had to log-in to avail online serv-ice

NA 1.82

N 192

S.E. .067

Mode 1

Total time taken to complete transaction Online (Minutes) NA 29.35

N 192

S.E. 1.060Mode 30

Amount spent as salary/wages on total time spent inavailing service (INR)

59.84 15.03 -44.818 **

N 192 192

S.E. 3.143 .934

Mode 33 8

Comment: The difference is because online users did not have to visit CTD to obtain forms thus saving salary/wagesfor waiting time and travel timeService Charge paid to department (INR) 0 0

N 192 192

S.E. 0 0

Mode 0 0

Service charge paid to Tax Consultant for facilitatingservice from CTD Office (INR)

.00 .00

N 192 192

S.E. .00 .00

Mode .00 .00

Amount paid as bribe (INR) 107.9948 8.23 -99.765 **

N 192 192

S.E. 12.17280 4.39202

Mode 0 0

Comment: Online users do not have to approach CTD officials for statutory forms. Therefore, there has been signifi-

cant reduction in bribes for this service.Total payment made (Rs) 107.99 8.23 -99.76563 **

N 192 192

S.E. 12.173 4.392

Mode 0 0

Comment: As there is no service charge or payment made to CTP, the only payment made is bribes.


N 192 192

S.E. 8.579 29.178

Mode 120 48

Comment: The data shows that there has been a significant 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.



310


OTHER TABLES: Time And Effort And Costs Of Availing Service

A. Online Service

Table 13: Dependence on CTPs

Processes related to the service outsourced? Frequency Percent

No, it was done completely in house 172 89.6

Yes, it was partially done by CTP 20 10.4

Total 192 100.0

Table 14: Reasons for dependence on CTPs

Reasons for depending on CTP N Percent Percent of Cases

Due to lack of sufficient knowledge on processes 15 53.6% 75.0%

To ensure accuracy of data given to Department 7 25.0% 35.0%

Want to avoid interface with Dep. officials 2 7.1% 10.0%

Do not want to spent time on this 4 14.3% 20.0%

Total 28 100.0%


Number of trips need to make to CTD Frequency Percent

0 192 100.0



1 84 43.8

2 71 37.0

3 28 14.6

4 6 3.1

5 2 1.0

6 1 .5

Total 192 100.0




Portal was undergoing maintenance 2 1.9


Total 108 100.0



311



Time taken to complete online transaction was excessive Frequency Valid Percent

Yes 97 50.5

No 95 49.5

Total 192 10 0.0


Reasons for excessive time in online transaction Frequency Valid Percent



Errors occur while uploading template 1 1.0

Total 97 100.0


Paid a bribe directly to Officials Frequency Percent

Yes 4 2.1

No 188 97.9

Total 192 100.0

Table 21: Purpose of bribe

Purpose of the bribe Frequency Valid Percent

To expedite the process 4 100.0

B. Manual Service


Processes related to the service outsourced Frequency Percent



Total 192 100.0


Reasons for depending on CTP Responses Percent of Cases

N Percent





Total 167 100.0%



312




1 128 66.7

2 64 33.3

Total 192 100.0


Reasons to make more than one trip Responses Percent of Cases

N Percent

It was required - as per CTD procedur e 13 18.3% 20.3%


service

45 63.4% 70.3%

Concerned functionary was not available 10 14.1% 15.6%

Counter was not operational 2 2.8% 3.1%

Documents/application submitted by me were incomplete 1 1.4% 1.6%

Total 71 100.0% 110.9%


Had to wait excessively for availing service in any of the trips Frequency Percent

Yes 43 22.4

No 149 77.6

Total 192 100.0


Reasons for excessive wait Responses Percent of

CasesN Percent

Long queue/ Too many applicants at office/ Badly managed queue 28 47.4% 65.1%

Officials of CTD are inefficient (slow in processing) 23 39.0% 53.5%

Some windows/counters were not operational 3 5.1% 7.0%

Power breakdown 4 6.8% 9.3%

Others 1 1.7% 2.3%

Total 59 100.0% 137.2%



Yes 77 40.1

No 115 59.9

Total 192 100.0



313



Purpose of bribe Responses Percent of Cases

N Percent

To avoid audit assessment by CT Department 1 1.0% 1.3%

To influence functionaries to manipulate records in our favor 28 27.5% 36.4%

To expedite the process 73 71.6% 94.8%

Total 102 100.0% 132.5%




(C-M)

Significance

Cost of availing service 4.13 2.89 1.240 **

N 192 192

S.E. .064 .061Time and effort in availing service 3.92 2.86 1.063 **

N 192 192

S.E. .064 .072Overall experience of availing service from CTD 3.95 2.86 1.089 **

N 192 192

S.E. .058 .064Confidentiality and security of data 4.33 3.68 .651 **

N 192 192

S.E. .053 .092Effort in preparation of documents 4.08 3.14 .943 **

N 192 192

S.E. .063 .081Overall quality of governance 3.95 2.92 1.026 **

N 192 192

S.E. .054 .068Overall quality of service 3.97 2.83 1.135 **

N 192 192

S.E. .049 .064Accuracy of transactions 4.31 3.53 .780 **

N 191 191

S.E. .060 .096Clarity and simplicity of processes and procedures 3.33 3.65 -.313 **

N 192 192

S.E. .075 .088Accountability of Officials 3.57 2.86 .707 **

N 191 191

S.E. .071 .068Transparency in CTD 3.88 2.93 .953 **

N 191 191

S.E. .064 .061Knowledge of Officials 3.21 3.81 -.604 **

N 192 192

S.E. .079 .081Predictability of outcome 3.83 2.95 .879 **

N 190 190

S.E .055 .066Complaint handling mechanism & problem resolu-

tion

3.54 3.02 .524 **



314



(C-M)

Significance

N 191 191

S.E .072 .074Ability to influence policies, rules and procedures 3.92 3.09 .827 **

N 191 191

S.E. .056 .071Convenience of location of center/office 4.09 3.79 .299 **

N 187 187

S.E. .076 .091Courtesy and helpfulness of Officials 3.60 2.94 .660 **

N 191 191

S.E. .072 .071Convenience of working hours 3.72 2.99 .724 **

N 192 192

S.E. .059 .074

Queuing system at CTD Office 3.91 2.61 1.305 ** N 187 187

S.E. .074 .064Level of corruption 2.48 2.19 .289 **

N 190 190

S.E. .088 .077Adherence to Citizen Charter 3.76 3.01 .754 **

N 191 191S.E. .061 .068

Dependence on CTPs 2.99 3.62 -.630 **

N 189 189S.E. .078 .101

Durability and legibility of certificates/receipts 3.90 3.22 .684 **

N 174 174

S.E. .071 .090

Composite Score


Respondents who


be Among Three Most

Important

Average of Indi-

vidual ScoresImprovement


Factor NumberPercentage(Column a/

Total of

Column a)

Comput-

erizedManual

Difference(Column c

–

Column d)

Weighted

Score(Column e

X

Column

b)

Cost of availing service 19 3.3% 4.13 2.89 1.240 0.04092

Time and effort in availing service 15 2.6% 3.92 2.86 1.063 0.027638


CTD6 1.0% 3.95 2.86 1.089 0.01089

Confidentiality and security of data 3 .5% 4.33 3.68 .651 0.003255

Effort in preparation of documents 13 2.3% 4.08 3.14 .943 0.021689


Overall quality of service 3 .5% 3.97 2.83 1.135 0.005675



315


Respondents who

Considered Factor tobe Among Three Most

Important

Average of Indi-vidual Scores

Improvement


Factor Number

Percentage

(Column a/

Total of

Column a)

Comput-

erizedManual

Difference

(Column c

–

Column d)

Weighted

Score

(Column e

X

Column

b)

Accuracy of transactions 3 .5% 4.31 3.53 .780 0.0039


procedures5 .9% 3.33 3.65 -.313 -0.00282

Accountability of Officials 67 11.6% 3.57 2.86 .707 0.082012Transparency in CTD 22 3.8% 3.88 2.93 .953 0.036214

Knowledge of Officials 112 19.4% 3.21 3.81 -.604 -0.11718


Complaint handling mechanism & problem

resolution38 6.6% 3.54 3.02 .524 0.034584

Ability to influence policies, rules and pro-

cedures through feedback 24 4.2% 3.92 3.09 .827 0.034734

Convenience of location of center/office

(accessibility and ambience)12 2.1% 4.09 3.79 .299 0.006279

Courtesy and helpfulness of Officials 43 7.5% 3.60 2.94 .660 0.0495

Convenience of working hours 34 5.9% 3.72 2.99 .724 0.042716Queuing system at CTD Office 14 2.4% 3.91 2.61 1.305 0.03132


Adherence to Citizen Charter 11 1.9% 3.76 3.01 .754 0.014326



receipts5 .9% 3.90 3.22 .684 0.006156




316




Suggestions to improve e-services Responses Percent of

CasesN Percent



Tax consultants should be allowed to make E-payment on behalf

of clients13 1.7% 6.8%



Involve more banks in e-payment 135 17.5% 70.3%Provide templates (w.r.t. returns) that can perform data verifica-

tion offline29 3.8% 15.1%

Changes in processes/templates should be immediately commu-

nicated84 10.9% 43.8%

In case of discrepancies in data/documents submitted by dealers,

CTD should intimate them at the earliest100 12.9% 52.1%

Total 773 100.0%


Suggestions to increase use of e-service Responses Percent of

CasesN Percent

Awareness campaigns on online services for dealer s 165 39.4% 85.9%

Establishment of common service centres to facilitate e-service

to all135 32.2% 70.3%

Online processes should be made much more user friendly and

simple119 28.4% 62.0%

Total 419 100.0%



317


Annexure – J

Gujarat: CTPs Using Optional Online Services






Total 148 100.0

Table 2: Division and range wise frequency

Division Range Treatment

(online)

Comparison

(manual)

Total

Ahmedabad

4 9 9 18

5 8 8 16

6 1 1 2

Total 18 18 36

Surat

15 4 4 8

16 5 4 9

17 3 4 718 4 4 8

Total 16 16 32

Bhavnagar

19 4 5 9

21 4 3 7

Total 8 8 16

Rajkot

22 9 8 17

23 8 8 16

24 8 8 16

25 7 8 15

Total 32 32 64


Location Treatment (online) Comparison

(manual)

Total

Urban74 74 148

100.0% 100.0% 100.0%

Total74 74 148

100.0% 100.0% 100.0%



318




Educational qualification of Tax Consultant Treatment (online) Comparison (manual) Total

CA13 7 20

17.6% 9.5% 13.5%

LLB57 57 114

77.0% 77.0% 77.0%

B.Com4 10 14

5.4% 13.5% 9.5%

Total74 74 148

100.0% 100.0% 100.0%


Years of Experience as Tax Consultant Treatment

(Online)

Comparison

(Manual)

Total

1-59 11 20

12.2% 14.9% 13.5%

6-1022 8 30

29.7% 10.8% 20.3%

11-1512 17 29

16.2% 23.0% 19.6%

16-2013 13 26

17.6% 17.6% 17.6%

21-2510 7 17

13.5% 9.5% 11.5%

>258 18 26

10.8% 24.3% 17.6%

Total74 74 148

100.0% 100.0% 100.0%




Treatment

(online)

Comparison

(manual)

Total

11 3 4

1.4% 4.1% 2.7%

215 23 38

20.3% 31.1% 25.7%

325 25 50

33.8% 33.8% 33.8%

417 17 34

23.0% 23.0% 23.0%

≥516 6 22

21.70% 8.10% 15.00%

Total

74 74 148

100.0% 100.0% 100.0%



319



Tax Consultant is computer literate Treatment

(online)

Comparison

(manual)

Total

Yes74 47 121

100.0% 63.5% 81.8%

No0 27 27

.0% 36.5% 18.2%

Total74 74 148

100.0% 100.0% 100.0%


Tax Consultant used any online e-Gov. service Treatment

(online)

Comparison

(manual)

Total

Yes74 18 91

100.0% 38.3% 75.2%

No0 29 30

.0% 61.7% 24.8%

Total74 47 121

100.0% 100.0% 100.0%



Aware about online services provided by Commercial Taxes

Department

Treatment

(online)

Comparison

(manual)

Total

Yes74 55 129

100.0% 74.3% 87.2%

No0 19 19

.0% 25.7% 12.8%

Total 74 74 148

100.0% 100.0% 100.0%


First source of awareness about online services Treatment(online)

Comparison(manual)

Total

Newspaper 8 10 18

10.8% 18.2% 14.0%

Television1 0 1

1.4% .0% .8%

Other CTPs7 4 11

9.5% 7.3% 8.5%

Commercial tax department official58 41 99

78.4% 74.5% 76.7%

Total74 55 129

100.0% 100.0% 100.0%



320



e-Services of CTD Treatment (online) Comparison (manual) Total


74.3% 70.9%


97.3% 96.4%


85.1% 70.9%


100.0% 98.2%


94.6% 87.3%


91.9% 96.4%

Total 74 55 129


Used any e-Services provided by CTD Treatment (online) Comparison (manual) Total

Yes74 0 74

100.0% .0% 57.4%

No0 55 55

.0% 100.0% 42.6%

Total74 55 129

100.0% 100.0% 100.0%


Reasons for using e-services Responses Percent of Cases

N Percent







Total 207 100.0%



321



Reasons for not using online services Responses Percent of Cases

N Percent

Do not have skills to use online services 39 32.8% 70.9%

Do not have access to hardware/software 14 11.8% 25.5%

Do not have access to internet 10 8.4% 18.2%

Unreliable power situation 6 5.0% 10.9%

Online process is prone to errors 33 27.7% 60.0%

Online process is not secure 2 1.7% 3.6%

Online process is slow 5 4.2% 9.1%

Have to submit hard copy to office 10 8.4% 18.2%

Total 119 100.0%


Table 15: Services Availed in Last 90 Days (Q1D A) and Mode of service (Q2D A)



Total 74 74 148

Table 16: Services Availed in Last 90 Days (Q1D B) and Mode of service (Q2D B)


Payment 4 8 12

Total 4 8 12

Note: Since there aren’t sufficient numbers of responses for the following services: Registration, Payment and Seeking Information they have not been

analyzed.


Filing Returns Manual Computerized Change

(C-M)

Significance

Time and Cost of Preparation of Documents for Filing of ReturnsMan-hours were spent collating data 2.9527 1.8074 -1.14527 **

N 74 74

S.E. .19977 .12098

Mode 3 1

Comment: Man-hours spent in collating data is lower

in the case of online users

Man-hours were spent for data entry in online tem-

plate NA 1.4122

N 74

S.E. .13845



322



(C-M)

Significance

Mode .50

Total man-hours for preparation of documents 2.9527 3.2196 .26689 NS

N 74 74

S.E. .19977 .19769

Mode 3 4

Salary/wages for preparation of documents (INR) 70.14 65.93 -4.203 NS

N 74 74

S.E. 7.441 4.153

Mode 50 100

Cost of stationery for preparation of documents (INR) 38.22 29.59 -8.622 * N 74 74

S.E. 3.821 3.351

Mode 50 20




N 74

S.E. 2.294

Mode 15


courier charges (INR) 101.80 90.27 -11.527 NS

N 74 74

S.E. 11.390 10.683

Mode 200 200

Total cost of preparation of documents (INR) 210.1486 204.5541 -5.59459 NS

N 74 74

S.E. 16.56652 13.33584

Mode 100 92

Time and Cost of Availing Service(Filing of Returns) From Commercial Taxes Department


N 74 74

S.E. .064 .084

Mode 1 1

Comment: There is no significant 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. 2.51273 7.14690

Mode 60 60

Travel cost (INR) 27.30 30.95 3.649 NS

N 74 74



323



(C-M)

Significance

S.E. 1.639 2.422

Mode 20 20

Travel time (Minutes) 52.43 49.73 -2.703 NS

N 74 74

S.E. 2.553 4.944

Mode 60 60


service NA 1.77

N 74

S.E..105

Mode 1


utes) NA 30.61

N 74

S.E. 1.530

Mode 30

Comment: According to many online users the server was slow due to which the time taken to complete online transac-

tion was excessive


availing service (INR)44.42 57.43 13.014 *

N 74 74

S.E. 3.450 5.726

Mode 33 42

Comment: The difference seen is because online users have incurred cost on time spent for online transaction and

manual submission of returns


N 74 74

S.E. 0 0

Mode 0 0

Amount paid as bribe (INR) 43.24 25.6757 -17.56757 NS

N74 74

S.E. 11.99 8.34529

Mode 0 0


N 74 74

S.E. 11.99023 8.345

Mode 0 0


(Hours)5.2218 5.1239 -.09784 NS

N 74 74

S.E. 3.88696 3.58727



324



(C-M)

Significance

Mode 1 1


(Hours).0000 1.1147 1.11473

N 74 74

S.E. .00000 .44704

Mode 0 .50

Total elapsed time in availing service (Hours) 5.2215 6.2508 1.02932 NS

N 74 74

S.E. 3.88697 3.59557

Mode1 1.50

Comment: There is no significant difference between online and manual modes in terms of total elapsed time in avail-

ing service

OTHER TABLES: TIME AND COST OF FILING RETURNS


Number of trips need to make for the service Treatment (online) Comparison (manual) Total

1 49 42 9166.2% 56.8% 61.5%

222 30 52

29.7% 40.5% 35.1%

31 2 3

1.4% 2.7% 2.0%

41 0 1

1.4% .0% .7%

51 0 1

1.4% .0% .7%

Total74 74 148

100.0% 100.0% 100.0%



325



Reasons to make more that one trip Treatment (online) Comparison

(manual)

Total

It was required -as per CTD procedure 0 3 3

.0% 9.4% 5.3%

To follow up, a there was delay on the part of CTD to

provide service

18 23 41

72.0% 71.9% 71.9%


queue

1 1 2

4.0% 3.1% 3.5%

Concerned functionary was not available 5 5 10

20.0% 15.6% 17.5%

Counter was not operational 1 0 14.0% .0% 1.8%

Total 25 32 57

100.0% 100.0% 100.0%


Had to wait excessively for availing service in any of the

trips

Treatment (online) Comparison

(manual)

Total

Yes24 23 47

32.4% 31.1% 31.8%

No50 51 101

67.6% 68.9% 68.2%

Total74 74 148

100.0% 100.0% 100.0%


Reasons for excessive wait Treatment (online) Comparison

(manual)

Total


16.7% 47.8% 31.9%


58.3% 39.1% 48.9%


8.3% 13.0% 10.6%


4.2% .0% 2.1%

Computer/network connectivity failure3 0 3

12.5% .0% 6.4%

Total24 23 47

100.0% 100.0% 100.0%



326



Number of times log-in to avail online service Treatment (online) Total

135 35

47.3% 47.3%

225 25

33.8% 33.8%

311 11

14.9% 14.9%

42 2

2.7% 2.7%

51 1

1.4% 1.4%

Total74 74

100.0% 100.0%


Reasons to log-in more than once Treatment (online) Total


100.0% 100.0%

Total39 39

100.0% 100.0%


Time taken to complete online transaction was excessive Treatment (online) Total

Yes36 36

48.6% 48.6%

No38 38

51.4% 51.4%

Total74 74

100.0% 100.0%


Reasons for excessive time Treatment (online) Total

Server is slow33 33

91.7% 91.7%


8.3% 8.3%

Total36 36

100.0% 100.0%



327



Paid a bribe directly to officials Treatment (online) Comparison

(manual)

Total

Yes9 13 22

12.2% 17.6% 14.9%

No65 61 126

87.8% 82.4% 85.1%

Total74 74 148

100.0% 100.0% 100.0%


Purpose of the bribe Treatment (online) Comparison(manual)

Total

To avoid audit assessment by CTD1 4 5

11.1% 30.8% 22.7%


favor

1 3 4

11.1% 23.1% 18.2%


77.8% 46.2% 59.1%

Total9 13 22

100.0% 100.0% 100.0%




(C-M)

Significance

Time and effort in filing returns 3.86 3.11 .757 **

N 74 74

S.E. .128 .095


N 74 73S.E. .112 .109

Design and layout of forms 3.30 2.97 .332 NS

N 66 34

S.E. .122 .161

Time and effort in tax payment 3.61 3.53 .080 NS

N 36 49

S.E. .151 .093

Security of monetary transactions 3.44 3.45 -.011 NS

N 39 47

S.E. .163 .157



328



(C-M)

Significance


N 74 74

S.E. .098 .090


N 73 73

S.E. .109 .106

Overall experience of availing service from CTD 3.78 3.28 .500 **

N 74 74

S.E. .100 .101

Accuracy of transactions 3.96 3.62 .338 *

N 74 74

S.E. .135 .144


N 74 74

S.E. .102 .133

Time and effort in procuring forms 2.69 3.05 -.365 **

N 74 74

S.E. .141 .118

Time and effort in accessing information 3.95 2.96 .986 **

N 74 74

S.E. .122 .125


N 74 74

S.E .111 .112

Clarity and simplicity of processes and procedures 3.53 3.55 -.027 NS

N 74 74

S.E .121 .140

Accountability of Officials 3.03 3.18 -.149 NS

N 74 74

S.E. .133 .125

Transparency in CTD 3.76 3.26 .500 ** N 74 74

S.E. .100 .114

Knowledge of Officials 2.70 3.42 -.716 **

N 74 74

S.E. .127 .152

Ability to influence policies, rules and procedures 3.53 3.38 .156 NS

N 73 74

S.E. .119 .101

Level of corruption 2.26 2.39 -.135 NS

N 74 74



329



(C-M)

Significance

S.E. .120 .133


N 74 74

S.E. .132 .145

Problem resolution 2.69 2.99 -.297 *

N 74 74

S.E. .125 .121


N 73 74

S.E. .140 .131


N 74 73

S.E. .120 .101


N 73 74

S.E. .151 .141


N 74 74

S.E. .146 .132

Adherence to Citizen Charter 3.14 3.01 .121 NS

N 74 73

S.E. .147 .143

Durability and legibility of certificates/receipts 3.49 3.32 .162 NS

N 74 74

S.E. .140 .131

Composite Score


Respondents who Consid-

ered Factor to be AmongThree Most Important

Average of Individu-

al Scores Improvement


Factor

Number

Percentage

(Column a/

Total of Col-

umn a)

Computer-

ized

Man-

ual

Difference

(Column c

–

Column d)

Weighted

Score

(Column e

X

Column b)

Time and effort in filing returns 3 .7% 3.86 3.11 .757 0.005299


Design and layout of forms 5 1.1% 3.30 2.97 .332 0.003652



330


Respondents who Consid-

ered Factor to be AmongThree Most Important


al Scores

Improvement



(Column a/

Total of Col-

umn a)

Computer-

ized

Man-

ual

Difference

(Column c

–

Column d)

Weighted

Score

(Column e

X

Column b)

Time and effort in tax payment 2 .5% 3.61 3.53 .080 0.0004

Security of monetary transactions 3 .7% 3.44 3.45 -.011 -0.000077



Overall experience of availingservice from CTD 5 1.1% 3.78 3.28 .500 0.0055


Confidentiality and security of data 14 3.2% 4.31 3.70 .608 0.019456

Time and effort in procuringforms

45 10.1% 2.69 3.05 -.365 -0.036865

Time and effort in accessing infor-mation 25 5.6% 3.95 2.96 .986 0.055216

Predictability of outcome 1 .2% 3.72 3.31 .405 0.00081

Clarity and simplicity of processesand procedures 7 1.6% 3.53 3.55 -.027 -0.000432

Accountability of Officials 45 10.1% 3.03 3.18 -.149 -0.015049

Transparency in CTD 3 .7% 3.76 3.26 .500 0.0035


Ability to influence policies, rulesand procedures through feedback 5 1.1% 3.53 3.38 .156 0.001716

Level of corruption 83 18.7% 2.26 2.39 -.135 -0.025245

Courtesy and helpfulness of Of-

ficials 13 2.9% 3.34 3.04 .297 0.008613

Problem resolution 43 9.7% 2.69 2.99 -.297 -0.028809

Complaint handling mechanism 24 5.4% 2.96 3.04 -.082 -0.004428



Convenience of location of office 1 .2% 3.88 3.95 -.068 -0.000136


Durability and legibility of certifi-cates/receipts

3 .7% 3.49 3.32 .162 0.001134

Total (Sum of column) 444 100.0% -0.037488



331




Suggestions to improve e services Responses Percent of Cases

N Percent



Tax consultants should be allowed to make E-payment on behalf of

their clients – through Consultant’s Internet Banking A/C9 1.7% 6.1%


CTD officials should be given adequate training, so that they can

handle queries on online services efficiently71 13.4% 48.0%



offline18 3.4% 12.2%

Changes in processes/templates should be immediately communi-

cated82 15.4% 55.4%

Total 531 100.0%


Suggestions to increase use of e service Responses Percent of Cases

N Percent


Establishment of common service centres to facilitate e-service to

all83 27.0% 56.1%


simple85 27.7% 57.4%

Total 307 100.0%



332


Annexure – K

Gujarat: CTPs Using Mandatory Online Services



Division Range N

Ahmedabad

4 9

5 8

6 1

Total 18

Surat

15 5

16 4

17 3

18 4

Total 16

Bhavnagar

19 4

21 5

Total 9

Rajkot

22 8

23 7

24 8

25 8

Total 31



Rural 1 1.4

Urban 73 98.6

Total 74 100.0


Table 3: Qualification of CTP

Educational qualification of Tax Consultant Frequency Percent

CA 14 18.9

LLB 58 78.4

B.Com 2 2.7

Total 74 100.0



333


Table 4: Experience of CTP

Experience as Tax Consultant Frequency Percent

1-5 14 23.3

6-10 12 20.0

11-15 13 21.7

16-20 12 20.0

21-25 9 15.0

Total 60 100.0


Number of staff in the organization involved in activities

related to Commercial Taxes

Frequency Percent

1 16 21.6

2 23 31.1

3 15 20.3

4 10 13.5

≥5 10 13.7

Total 74 100.0


Tax Consultant is computer literate Frequency Percent

Yes 74 100.0

Table 7: Experience of CTP in using online services

Tax Consultant used any online e-Gov. service Frequency Percent

Yes 74 100.0



First source of awareness about e-services Frequency Percent

Newspaper 8 10.8

Television 2 2.7

Other CTPs 4 5.4


Total 74 100.0



334



Online services provided by CTD Responses Percent of

CasesN Percent


Application for issue of forms 74 18.4% 100%





Total 402 100.0%


Reasons for using e-services Responses Percent of

CasesN Percent







Total 198 100.0%




Time and Cost of Availing Service From Commercial Taxes Department

Number of trips 1.51 .00 -1.514 **

N 74 74

S.E. .093 .000

Mode 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.Waiting time (Minutes) 61.2162 NA

N 74

S.E. 3.50835

Mode 60


N 74

S.E. 2.367



335



Mode 20


N 74

S.E. 2.627

Mode 60


service NA 1.77

N 74

S.E. .110

Mode 1


NA 27.97

N 74

S.E. 2.103

Mode 30


in availing service (INR)45.62 13.64 -31.986 **

N 74 74

S.E. 6.881 3.437

Mode 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 timeService Charge paid to department (INR) 0 0

N 74 74

S.E. 0 0

Mode 0 0

Amount paid as bribe (INR) 72.2973 .00 -72.2973 **

N 74 74

S.E. 18.83161 .000

Mode 0 0

Comment: Online users do not have to approach CTD officials for statutory forms. Therefore, there has been signifi-

cant reduction in bribes for this service.

Total payment made (Rs) 72.30 0 -72.297 **

N 74 74

S.E. 18.832 0

Mode 0 0

Comment: As there is no service charge, the only payment made is bribes.


N 74 74

S.E. 10.326 58.129

Mode 120 48

Comment: The data shows that there has been a significant 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



336


OTHER TABLES: Time And Effort And Costs Of Availing Service

A. Online Service


Number of trips Frequency Percent

0 74 100.0


Number of times og-in to avail online service Frequency Percent

1 38 51.4

2 19 25.73 14 18.9

4 2 2.7

5 1 1.4

Total 74 100.0





Total 36 100.0



Yes 35 47.3

No 39 52.7

Total 74 100.0


Reasons for excessive time in online transaction Frequency Valid PercentServer is slow 31 88.6



Total 35 100.0



Yes 2 2.7

No 72 97.3

Total 74 100.0



337




N Percent

To avoid audit assessment by CTD 1 33.3% 50.0%

To expedite the process 2 66.7% 100.0%

Total 3 100.0%

B. Manual Service



1 44 59.5

2 26 35.1

3 2 2.7

5 2 2.7

Total 74 100.0

Table 20: More number of trips

Reasons to make more than one trip Responses Percent of Cases N



service26 65.0% 86.7%


queue2 5.0% 6.7%



Total 40 100.0%



Yes 18 24.3

No 56 75.7

Total 74 100.0


Reasons for excessive wait Responses Percent of Cases

N Percent

Long queue 4 17.4% 22.2%


Too many applicants at office 3 13.0% 16.7%

Badly managed queue 3 13.0% 16.7%

Power breakdown 3 13.0% 16.7%

Computer/network connectivity failure 1 4.3% 5.6%

Total 23 100.0%



338




Yes 20 27.0

No 54 73.0

Total 74 100.0



N Percent

To influence functionaries to manipulate records in our favor 4 17.4% 20.0%To expedite the process 19 82.6% 95.0%

Total 23 100.0%




(C-M)

Significance

Cost of availing service 4.14 2.91 1.230 **

N 74 74S.E. .113 .093

Time and effort in availing service 3.81 3.07 .743 **

N 74 74

S.E. .118 .113


N 74 74

S.E. .088 .096

Overall quality of governance 3.91 2.88 1.027 **

N 74 74

S.E. .091 .104

Overall quality of service 4.12 2.86 1.257 **

N 74 74

S.E. .109 .102

Durability and legibility of statutory forms 3.49 3.62 -.135 NS

N 74 74

S.E. .113 .127


N 74 74

S.E. .116 .150




339



(C-M)

Significance

N 74 74

S.E. .129 .118


N 74 74

S.E. .096 .097

Knowledge of Officials 2.92 3.39 -.473 **

N 74 74

S.E. .136 .157

Predictability of outcome 3.91 2.74 1.162 **

N 74 74S.E. .107 .094

Complaint handling mechanism & problem resolution 3.30 2.72 .581 **

N 74 74

S.E. .150 .122

Ability to influence policies, rules and procedures 3.77 3.07 .699 **

N 73 73

S.E .106 .116

Convenience of location of center/office 4.21 3.93 .274 **

N 73 73

S.E .126 .142

Courtesy and helpfulness of Officials 3.39 2.84 .554 **

N 74 74

S.E. .127 .117


N 74 74

S.E. .111 .102

Queuing system at CTD Office 3.65 2.35 1.297 **

N 74 74

S.E. .137 .101


N 74 74

S.E. .114 .113


N 74 74

S.E. .125 .133

Dependence on Officials 3.57 3.14 .432 **

N 74 74

S.E. .126 .182



340


Composite Score


Respondents who


be Among Three Most

Important


al Scores

Improvement

Column No. a b c d e f


(Column a/

Total of

Column a)

Comput-

erized

Manual Difference

(Column c

–

Column

d)

Weighted

Score

(Column e

X

Column b)


Time and effort in availing service 9 4.1% 3.81 3.07 .743 0.030463


from CTD5 2.3% 3.95 2.97 .973 0.022379



Durability and legibility of forms 14 6.3% 3.49 3.62 -.135 -0.00851


procedures

2 .9% 3.35 3.45 -.095 -0.00086





Complaint handling mechanism &

problem resolution24 10.8% 3.30 2.72 .581 0.062748


procedures through feedback 2 .9% 3.77 3.07 .699 0.006291

Convenience of location of center/office


2 .9% 4.21 3.93 .274 0.002466

Courtesy and helpfulness of Officials 15 6.8% 3.39 2.84 .554 0.037672

Convenience of working hours 1 .5% 3.55 2.91 .649 0.003245

Queuing system at CTD Office 4 1.8% 3.65 2.35 1.297 0.023346



Dependence on Officials 19 8.6% 3.57 3.14 .432 0.037152




341




Suggestions to improve e-services Responses Percent of Cases

N Percent



CTPs should be allowed to make E-payment on behalf of clients 3 1.0% 4.1%




Provide templates (w.r.t. returns) that can perform data verificationoffline

9 2.9% 12.2%


communicated35 11.4% 47.3%

In case of discrepancies in data/documents submitted by dealers,


Total 306 100.0%



N Percent

Awareness campaigns on online services for dealer s 72 45.0% 97.3%

Establishment of common service centres to facilitate e-service to

all46 28.7% 62.2%


simple42 26.3% 56.8%

Total 160 100.0%



Rajasthan


2010



345

Acknowledgments





IIM, Ahmedabad.



Mr. P.K. Pujari, Commissioner, Commercial Taxes Department, Government of Gujarat, has facilitatedthe 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.


Director, RDI



346

Table of Contents

1.0 Introduction .........................................................................................................................349

2.0 Profile of Respondents ........................................................................................................352

3.0 Awareness and Usage of Online Services ...........................................................................352

4.0 Time, Effort and Cost of Availing Services ........................................................................353

5.0 Overall Assessment .............................................................................................................356

6.0 Suggestions of Respondents ...............................................................................................368

7.0 Opinion of Service Providers ..............................................................................................369

8.0 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



347








348

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-filing 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 findings of this survey.


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.


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 significantly 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 significant time and cost.



service, therefore, has not been successful in terms of eliminating visits to office.


submission of hard copies of returns). Moreover, online templates should be made much more user


Time, Effort and Cost of Availing Service: Obtaining VAT Forms

This online service has had significant impact – it has eliminated trips to office for obtaining VAT

forms (as it is available online), eliminated bribes (as there is no need for user to meet officials) and

significantly reduced total time in availing service.



349


1.0 Introduction










Projects in Rajasthan.






Commercial Taxes Department (CTD) of Rajasthan has introduced many online services1 for dealers

including filing 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 five major sections, each with specific objectives:


(CTPs).



users prefer online services over manual services and vice versa.





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 online5.

services and increasing usage of online services.

____________ 1Electronic service delivery launch date: January 2008



350



Table 1: Percentage of Online and Manual Users (1st April 08 to 31st May 09)



Registration 99.95% 0.05% 99.98% 0.02%

Filing of returns 99.94% 0.06% 99.98% 1.05%

Payment 99.33% 0.67% 97.50% 2.50%

Communication/Information Dissemination* 95% 5% 95% 5%

Refund* 95% 5% 95% 5%

E-submission of declaration form* 90% 10% 90% 10%

Issue of VAT Forms2

0 100% 100% 0

*Approximate figures based on perception of CTD Officials – actual figures were not available




There were about seven online services in Rajasthan in June 2009.1. Table 1 give details of online

services in the State and service wise percentage of users

All online services, except issue of VAT forms, were voluntary2.3

– dealers could either use manualmode or online mode according to their convenience. VAT forms have to be downloaded form

website of the CTD (they cannot be obtained manually from Office of CTD) – this was therefore

considered as a mandatory service

During pilot study we understood that many dealers in Rajasthan relied (either partially or fully)3.

on Commercial Taxes Practitioners (CTPs) for availing services including registration, filing

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

__________

2All forms of VAT are available online – they can only be obtained online. However, in case of CST, forms are not available online3Online filing 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 filing of returns was considered as an optional service



351


in activity level and geographical location for selection of Zones, Circles and wards. Please refer



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. Interview schedule for dealers: optional online services

2. Interview schedule for dealers: mandatory online services

3. Interview schedule for CTPs: optional online services

4. Interview schedule for CTPs: mandatory online services

Interview schedules are given in Annexure C - F.


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:

Services availed: Optional services used in last three months (90 days) and mode of service1.

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


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.

Address of CTPs - in case CTP’s assistance was sought3.

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 field work are given in Annexure G.

1.5 Outline of Report

The report has five sections – User Profile, 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:



352



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.


Users Of Optional Online Services



Users Of Mandatory Online Services

Dealers 97

Commercial Taxes Practitioners 52


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

find out the reasons for low usage of online services.


Dealers: Among the comparison group (manual mode users) 47.6% were not aware of online servic-es – 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 access to hardware/software


• Have to submit hard copy to office

CTPs: Unlike Dealers, most comparison group CTPs (89.6%) were aware of online services. How-

ever, these CTPs (who were aware of e-services) chose not to use online services because of the fol-lowing major reasons:



• Online process is slow

• Have to submit hard copy to CTD





353


• 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.


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 weren’t sufficient 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.


Dealers registered with the CTD are required to file returns periodically, monthly/bi-monthly/quar-

terly/annually depending on turnover, in a prescribed format. Filing Returns has two major compo-nents:


entry in online template.




above, mainly because: dealers lack sufficient knowledge to prepare returns and/or they want to en-

sure that the returns submitted are free of errors.


are given below:



354



Manual Online




department


to CTD. After verification of return documents

by the clerk/CTI, the dealer receives a receipt

of submission









some dealers take a print out of the template

and fill it up manually











Respondents were asked to provide details on time, effort and cost incurred in filing returns. Respons-

es 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 filing of returns has impacted dealers and CTPs – quan-

titative data obtained through the survey and qualitative data from filed observations shall be used in

conjunction for this purpose.



355


____________ 4

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



Filing Returns Computerized Manual Change (C-M) Significance

Dealer 10.4935 6.3810 4.11242 **

CTP 5.0605 3.9846 1.07593 NS

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 Office.

CTPs: Total man-hours spent for preparation of documents of online users is higher than that ofmanual users – but it is not statistically significant. In the case of CTPs too, the increase in man-hours

can be attributed to data entry in online template.


10.4935

6.381

4.11242

5.06053.9846

1.07593

0

2

4

6

8

10

12

Dealers CTPs




356



Table 5: Total cost for preparation of documents5 for Filing of Returns


Dealer 1211.1317 860.3024 350.82929 **

CTP 251.99 191.33 60.658 **

Dealers: Total cost of preparation of documents for online users is significantly 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 notedthat service charges of CTPs is higher in the case of online users – this, however, is not significant

statistically.

CTPs: Total cost of preparation of documents for online users is significantly 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.

__________ 5This includes amount spent as salary/wages for preparation of documents, expenses on stationery, cost of Internet, cost of Statutory Forms and other



350.82929

860.3024

1211.1317

60.658191.33251.99

0

200

400

600

800

1000

1200

1400

Delers CTPs




357






Dealer 1.11 1.19 -.082 *

CTP 1.09 1.17 -.078 NS

Dealers: Both manual and online users have to make at least one trip to CTD office. Manual users,

however, had to make slightly more number of trips when compared to online users.

CTPs: There is no significant 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.

Number of Trips

1.191.11

-0.082

1.09 1.17

-0.078

-0.2

0

0.2

0.4

0.6

0.8

1

1.2

1.4

Dealers CTPs




358


__________



Table 7: Waiting time in minutes


Dealer 53.6585 56.7540 -3.09550 NS

CTP 44.8611 56.6447 -11.7836 *

Dealers: Waiting time for online users was marginally lesser than that of manual users. However, this

difference is not statistically significant.

CTPs: Waiting time for online users is significantly 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 officers of CTD before receipt of submission

is issued.


53.6585

56.754

-3.0955

-11.7836

56.6447

44.8611

-20

-10

0

10

20

30

40

50

60

70

Dealers CTPs




359


__________



Table 8: Amount spent as salary/wages on total time spent in availing service


Dealer 109.67 68.81 40.858 **

CTP 71.87 64.78 7.090 NS

Dealers: Online users spent significantly 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

significant statistically.

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

109.67

68.81

40.858

7.09

64.78

71.87

0

20

40

60

80

100

120

Dealers CTPs




360


__________


functionaries


Table 9: Total payment made for Filing Returns


Dealer 450.31 307.96 142.344 **

CTP 15.04 30.25 -15.210 *

Dealers: There is no service charge to be paid to CTD for filing of returns and there is no significant

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 significantly less in the case of online users.


15.04 30.25142.344

307.96

450.31

-15.21

-100

0

100

200

300

400

500

Dealers CTPS




361



Table 10: Time in availing service through manual process (Hours)


Dealer .8618 2.5041 -1.64231 **

CTP 1.3472 1.8818 -0.53464 NS


online, while that of manual users are scrutinized – hence the difference.

CTPs: Although it is not significant statistically, online users spent less time at the counter.


0.8618

2.5041

-1.64231

1.8818

1.3472

-0.53464

-2

-1.5

-1

-0.5

0

0.5

1

1.5

2

2.5

3

Dealers CTPs




362



Table 11: Total elapsed time in availing service (Hours) for Filing Returns


Dealer 1.6055 2.5175 -.91203 **

CTP 2.9765 1.5266 1.44995 NS

Dealers: Total elapsed time is significantly lower for users of online service

CTPs: There is no significant difference between online and manual modes in terms of total elapsed

time in availing service.


-0.91203

2.5175

1.60551.449951.5266

2.9765

-1.5

-1

-0.5

0

0.5

1

1.5

2

2.5

3

3.5

Dealers CTPs




363


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 Offices – dealers

had to visit the office at least once

All VAT forms are available on CTD website. Dealers can

download it or get it from CTPs. VAT forms are also sold

by some Photocopy centres. Dealers need not visit CTD

Office 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


VAT Forms Computerized Manual Change (C-M) Significance

Dealer 0 1.28 -1.28 **

CTP 0 1.52 -1.52 **

Both dealers and CTPs have benefited 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 office, travel time and waiting time.

Number of Trips

-1.28

0 1.28

-1.52

1.52

0

-2

-1.5

-1

-0.5

0

0.5

1

1.5

2




364



Table 13: Amount spent as salary/wages on time spent in availing service (INR)


Dealer 32.411 78.659 -46.2474 **

CTP 15.894 74.673 -58.7788 **

Clearly the amount spent as salary/wages has decreased significantly 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.

__________



service

-46.2474

78.659

32.411

-58.7788

74.673

15.894

-80

-60

-40

-20

0

20

40

60

80

100




365


___________

15Includes a) amount paid to department for which receipt was given, and c) amount paid as bribe to department staff/functionaries

Total payment made10

Table 14: Total payment made (INR)


Dealer .0000 22.82 -22.82 **

CTP .0000 27.31 -27.308 **

Total payment made has significantly decreased in the case of online users (dealers and CTPs). As

there is no service charge, the only payment made is bribes to officials. Online users do not have

to approach CTD officials for VAT forms – they can download it – therefore, they did not pay any

bribes.


-22.82

22.820

27.31

0

-27.308

-40

-30

-20

-10

0

10

20

30

40

Dealers CTPS




366





Dealer 1.287 16.261 -14.9740 **

CTP .6721 12.5194 -11.847 **

There is significant 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 office for obtaining

VAT forms.


-14.974

16.261

1.287

-11.847

12.5194

0.6721

-20

-15

-10

-5

0

5

10

15

20

Dealers CTPs




367


_________



Optional Services



Analysis shows that, for most of the attributes, difference of mean scores of manual and online users

was not statistically significant. In some cases, however, they were statistically significant and those

attributes are given below:

Table 16: Attributes on which online service was rated higher than manual service

Dealers CTPs

1. Time and effort in procuring forms Courtesy and helpfulness of officials1.

2. Time & effort in accessing information Accuracy of transactions2.

3. Confidentiality and security of data

(Table 17: Attributes on which online service was rated lower than manual service

CTPs

Knowledge of officials – reportedly many officials do not have sound knowledge on online process and conse-1.

quently they are unable to assist users when they face problems

Level of corruption – online users had expected that corruption would be eliminated or reduced significantly by2.online service. This has not happened and therefore the lower score for online service

Mandatory Services

Dealers and CTPs were asked to rate some attributes w.r.t mandatory services provided by CTD on a

five 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 elevenattributes and lower in only one attribute (knowledge of officials). In the case of rest of the attributes,

difference was not statistically significant.

Composite Score


section: Overall Assessment. Results are given in the figure below:



368


The graph clearly shows that users of mandatory service (obtaining VAT forms) are far more satisfied

than users of optional online services (mainly filing of returns as most of the responses were for this

service).



1. Eliminate practice of submission of hard copy to CTD

2. Server speed should be increased

3. Tax consultants should be allowed to make E-payment on behalf of their clients – through

Consultant’s Internet Banking A/C (dealers do not want to give CTPs access to their accounts)

4. Maintenance of website should not be done during office hour

5. CTD officials should be given adequate training, so that they can handle queries on onlineservices efficiently

6. Involve more banks in E-payment

7. Provide templates (w.r.t. returns) that can perform data verification offline

8. Changes in processes/templates should be immediately communicated to dealers


1. Awareness campaigns on online services for users

2. Establishment of common service centres to facilitate e-services to all

Composite Score

0.719403

0.0442-0.01528

0.440068

-0.1

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

Dealers CTPs

Optional Services Usersl Mandatory Service Users



369


3. Online processes should be made much more user friendly & simple

Other Suggestions

1. All forms, including CST Forms, should be provided online

2. There is a need to increase counters at CTD Office – to reduce waiting time

3. Local language interface needed for online services

4. To minimize interface between officials and dealers/CTPS, copy of return (that is filed online)

should be sent to a central processing unit/centre


As part of the study we interviewed officials of CTD at the ward level. Information gathered from


Benefits of e-governance project:1.

Saving time and cost: CTD has benefited from online filing 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

Challenges faced as a result of e-governance project:2.

Lack of adequate number of computers•


Power interruptions•

Some offices do not have system specialists who can handle glitches•

8.0 Recommendations For Improving Online Services

Filing Returns




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



370


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 tothe 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.

Submitting returns to CTD office3. : Online dealers have to submit hard copy of online returns






Many are reluctant to use it because they believe that digital signature is not secure –• it could be

hacked and misused








371


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:



M O M O

Registration99.95% 0.05% 99.98% 0.02%

(40007) (17) (46337) (5)

Filing of returns99.94% 0.06% 99.98% 1.05%

(629684) (378) (38173) (405)

Payment99.33% 0.67% 97.50% 2.50%

(763448) (5128) (46337) (1191)

Communication/Information Dissemination* 95% 5% 95% 5%

Refund* 95% 5% 95% 5%E-submission of declaration form* 90% 10% 90% 10%

Issue of Forms2 0 100% 100% 0

*Approximate figures based on perception of CTD Officials – actual figures 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 im-

pact assessment of Optional Online Services (Please refer Annexure A–I).

Treatment Group has been defined 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 per-

taining to online services only.


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



372


because of the absence of comparison group.

Commercial Taxes Practitioners (CTPs) undertake various tasks, including registration and filing of

returns, on behalf of their clients (Dealers). Therefore, it is also important to know how this e-gover-

nance 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 filing, 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 eachquartile – 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 E-Services users Percentage Selected Zones

/Division

No. of Respondents

Quartile I

Ajmer 56267

76.66% Jaipur II 450Jaipur II 47075

Bhilwara 25675

Total 129017

Quartile II

Kota 22257

21.60% Kota 150Jodhpur 12610

Jaipur I 1488

Total 36355

Quartile III

Jaipur III 1005

1.50% Bikaner 100Bikaner 927

Alwar 600

Total 2532

Quartile IV

Pali 174

0.24% Udaipur 100Udaipur 120

Sriganganagar 80

Bharatpur 30

Total 404

G. Total 168308 100% 800

Note:

Sample size in each selected Zones/Division is proportionate to the number of users in the1.

quartile in which it falls


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



373


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.


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 filing, e-payment

from 1/4/2008 to 31/07/2009 (Please refer Annexure A– III). Circles were arranged in descending or-

der 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 E-services (VAT) users/dealers

Jaipur-II

SPECIAL - II 32438

A 340

J 339

SPECIAL - VIII 236

Kota

SPECIAL - II 31005

B 458

SPECIAL 248A 128

Bikaner

B 302

A 252

JHUNJHUNU 178

CHURU 160

Udaipur

SPECIAL 118

B 66

A 65

C 59

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 – Officials 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.



374




Selected Zone/Division Selected Circle No. of Wards Sample Size/Ward

Jaipur - II

SPECIAL - II

4 Circles X 2 = 8 450/8 = 56A

J

SPECIAL - VIII

Kota

SPECIAL - II

4 Circles X 2 = 8 150/8 = 19B

SPECIAL

A

Bikaner

B

4 Circles X 2 = 8 100/8 = 12A

JHUNJHUNU

CHURU

Udaipur

SPECIAL

4 Circles X 2 = 8 100/8 = 12B

A

C

Total Dealers Covered: 600 [Mandatory Service (VAT Forms) – 100; Optional Services – 500 (Treat-

ment- 250 & Comparison – 250)

Total CTPs Covered: 200 [Mandatory Service (VAT Forms) – 50; Optional Services – 150 (Treat-

ment- 75 & Comparison – 75)



375


Annexure A– I


(Post-test Only)

N X O N X O Each group is described on a single line (i.e., treatment group on top, comparison group at the

bottom)


groups)






think are similar as the treatment and control groups. In education, we might pick two comparableclassrooms or schools. In community-based research, we might use two similar communities. We




lottery.





Reference





376


Annexure A– II

Quasi-Experimental Design: Proxy Pretest Design 0-1 X 0-2





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.












Reference





377


Annexure A–III

Rajasthan VAT Circle Wise Statistics from 01-Apr-2008 To 31-Jul-2009

Zone Circle TOTAL Registration Return filing Payment Statutory

Form

Jaipur-II

Special - II 32438 0 57 655 31726

A 340 0 124 216 0

J 339 0 73 266 0

Special - VIII 236 0 73 35 128

D 212 0 46 166 0

H 179 1 72 106 0

Dausa 20 0 4 16 0

Special - Rajasthan 17 0 10 7 0

Works Tax - II 15 0 14 1 0

Kota

Special - II 31005 0 15 16 30974

B 458 0 76 75 307

Special 248 0 39 118 91

A 128 0 32 92 4

Special - III 34 0 25 9 0

Bundi 27 0 13 14 0

Baran 9 0 6 3 0

Jhalawar 2 0 1 1 0

Works Tax 13 0 2 11 0

Bikaner

B 302 0 39 179 84

A 252 1 43 208 0

Jhunjhunu 178 0 2 99 77

Churu 160 0 3 12 145

Special 141 0 57 67 17

Works Tax 13 0 13 0 0

Udaipur

Special 118 0 43 56 19

B 66 0 38 28 0

A 65 0 18 16 31

C 59 0 30 17 12

Banswara 58 0 21 33 4

Dungarpur 38 0 6 16 16

Works Tax 4 0 4 0 0

Note: Circles highlighted in Bold has been selected



378


Annexure – B

Rajasthan- Listing Schedule For Dealers


Division

Circle

Ward


< 50 lakhs………………………………………………….1

50 lakhs – 1 crore…………………………………………2

> 1 crore…………………………………………………….3



Registration Yes-1; No-2 Manual -1; Online - 2 In-house - 1, Partial - 2, CTP - 3




Refund Yes-1; No-2 Manual -1; Online - 2 In-house - 1, Partial - 2, CTP - 3

Submission of declaration form Yes-1; No-2 Manual -1; Online - 2 In-house - 1, Partial - 2, CTP - 3



Obtaining VAT Forms Yes-1; No-2 Manual -1; Online – 2; Both – 3 In-house - 1, Partial - 2, CTP - 3



Date:

__________

13With phone numbers and nearest landmark 14Circle responses15Completely in-house – 1; Partially in-house – 2; Completely outsourced to CTP – 316Should be considered completely in-house only if both manual and online services are done in-house17With phone numbers and nearest landmark



379


Rajasthan- Listing Schedule For CTPs


Division

Range

Ward




Registration Yes-1 No-2 Manual -1 Online - 2


Payment Yes-1 No-2 Manual -1 Online - 2

Seeking Information Yes-1 No-2 Manual -1 Online - 2

Refund Yes-1 No-2 Manual -1 Online - 2

Submission of declaration form Yes-1 No-2 Manual -1 Online - 2


Obtaining VAT Forms Yes-1 No-2 Manual -1 Online – 2 Both – 3


Date:

__________

20With phone numbers and nearest landmark

21Circle responses



380


Annexure – C

Rajasthan: Interview Schedule For Dealers

(Dealers Using Optional Online Services)


Sl. No. State State Code District District Code Date of Interview (DD/MM) Respondent’s Name &

Designation




TIN Group20 Division Division Code

Treatment (online)………..…1


Interviewer Editor Supervisor Circle Circle code

Name Name Name


(Km.)

Ward Ward code


DEALER PROFILEB.

1B. Please specify the Consti tution of your enterprise Proprietor……………………………….…1







Others (Specify)


Wholesale…………………………….……2

Retail………………….……………………3Export…………………………….………..4



Leasing………………………….…………7

Hotels………………………………………8

Food & Drink……………………………….9

Others (Specify)


(INR)

__________ 20As per the listing exercise21As per Commercial Tax Department records



381


4B. Please give details of Commercial Taxes paid in Financial

Year: 2008-09 (INR)


(INR)VAT Yes-1 No-2

CST Yes-1 No-2

Entry Tax

Others (Specify)



Manual …………………………..……..….1







Taxes Department?

Yes - 1

No - 2 Part D



Newspaper…………………….……………………..1

Television…………………………………………….2

Other Dealers………………………………………..3

CTPs…………..…………………………..…………4


Others (Specify)


Taxes Department?







Information Dissemination…………………………..6Others (Specify)



Yes – 1

No – 2 7C


frequency of use

Frequency of Use


Monthly………………….…… 2



Others (Specify)










PLEASE PROCEED TO PART D AFTER ANSWER-

ING THIS QUESTION







Others (Specify)



382





Do not have access to hardware/software…..…...2Do not have access to internet…………………....3






Others (Specify)

TIME AND EFFORT AND COSTS OF AVAILING SERVICESA.



A B



Filing Returns…………………………………………………1

Payment………………………………......…………………….2Registration………………………………………………………3

Refund…………………………………………………………4

Submission of declaration form…………………………………..5

Seeking information (including application tracking)…………6 15D













Others (Specify)


(This section is not applicable for Services: Payment and Seeking Information)


documents for manual filing of returns?

PLEASE NOTE THAT THIS COULD BE APPLICABLE FOR ONLINE USERS

AS WELL - MANY OF THEM ARE REQUIRED TO FILE HARD COPIES, EVEN






returns (Total man-hours spent X wage per man-hour) {INR}




12D. Cost of Statutory Forms and other Forms – including courier charges (INR) __________

22 Ledgers, CDs, printing paper, printing ink, carbon paper etc.23 Internet charges based on hours of internet used for this particular service



383







tion?



To submit documents………………………………………………......…1

To collect certificate………………………………………….……..…….2

To correct error in certificate/document issued by CTD………………….3

To correct errors in documents submitted by Dealer/Tax Consultant…..…4

To track application…………………………………………………………5To seek information………………………………………………………6

To bank/treasury for making payment - Challan (applicable only for

payment)…..................................................................................................7

To fulfill requirement of physical presence……………………………….8

Others (Specify)


I

II

III

IV

V

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……………………………………………………………5Documents/application submitted by me were incomplete……………………………6

Others (Specify)


Yes – 1

No – 2 20D


Long queue…………………………………………………….…………………1

Officials of CTD are inefficient (slow in processing)…………………………….2

Processes are too complex & takes lot of time to complete……………………...3

Too many applicants at office…………………………………………………….4

Badly managed queue……………………………………………………………5

Some windows/counters were not operational……………………………………6Power breakdown…………………………………………………………....…….7

Computer/network connectivity failure………………………………….……….8

Others (Specify)











384



MANUAL USERS]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]


Portal was undergoing maintenance……………………………………………...2

Templates had changed, therefore i t had to be downloaded first…………………3

Others (Specify)






Server is slow……………………………………………………………….………1

Processes are complex and time consuming……………………………......………2

Errors occur while uploading template………………………………………..……3

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}







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 filling forms, preparation of supporting



TO COMPLETE THE TRANSACTION ONLINE PLUS TIME SPENT TO SUBMIT

HARD COPIES TO CTD

Manual

Process

Manual

Process

Online

Process

Online

Process

Total Total


Yes-1; No-2 Part E




To influence functionaries to manipulate records in your favor……….….….2To expedite the process……………………………..……………………..…3

Others (Specify)




FILING OF RETURNS



__________ 24Includes a) service charge paid to intermediary/agency, b) amount paid to department for which receipt was given, and c) amount paid as bribe to




385


PAYMENT OF TAX


COMMON ATTRIBUTES






14E. Clarity and simplicity of processes and procedures 15E. Accountability of Officials



through feedback






24E. Queuing system at CTD Office 25E. Convenience of location of office (accessibility

and ambience)





F. SUGGESTIONS33



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 Consultant’s Internet Banking A/C…

…………………………………………..………………………………………………………………………………..….c

Maintenance of website should not be done during Office Hours of Traders/Tax Consultants………………………….....d

CTD officials should be given adequate training, so that they can handle queries on online services efficiently…......…...e

Involve more Banks in E-payment……………………………………………………………………………………....….f

Provide templates(w.r.t. returns) that can perform data verification offline…………………………………………………g

Changes in processes/templates should be immediately communicated to dealers…………………………………....…....h

Others (Specify)

__________

25Quality of service is understood as fairness, speed of processing, accuracy of transactions, legibility and durability of certificates and printouts, con-

venience of obtaining service26Governance is understood as transparency, accountability and corruption-free working27Understanding and awareness of the basis on which decisions affecting you/other users are taken by officials28Very corrupt-1; Somewhat corrupt-2; Neutral-3; Somewhat less corrupt-4; Not at all corrupt-529Mechanism to rectify inadvertent errors in forms/documents submitted by Dealers to CTD e.g. computational errors/wrong figures30Hours of service in case of online services31Adherence of the time frame for service delivery (elapsed time) to that specified in citizen’s charter 32Very much dependant -1; Somewhat dependant -2; Neutral-3; Somewhat less dependant-4; Not at all dependant-533This part is for all users - manual and online



386




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)



387


Annexure – D

Rajasthan: Interview Schedule For Dealers

(Dealers Using Mandatory Online Service)

G. IDENTIFICATION DETAILS


Code

Date of Interview (DD/MM) Distance from Ward Office (Km.)


Land : Town/Vil-

lage


Urban………….2

Mobile:

TIN Respondent’s Name & Designa-

tion

Division Division Code


Name Name Name

Code Code Code Ward Ward code


H. DEALER PROFILE1B. Please specify the Constitution of your enterprise Proprietor……………………………….…1


Private Limited Company……….……….3Public Limited Company…………………4




Others (Specify)


Wholesale…………………………….……2

Retail………………….……………………3

Export…………………………….………..4



Leasing………………………….…………7

Hotels………………………………………8

Food & Drink……………………………….9

Others (Specify)3B. What was the annual turnover in Financial Year: 2008-

09 (INR)

___________




388


4B. Please give details of Commercial Taxes paid in Finan-

cial Year: 2008-09 (INR)


(INR)VAT Yes-1 No-2

CST Yes-1 No-2

Entry Tax

Others (Specify)



Manual …………………………..……..….1



6B. Number of staff in your organization who are involved

in activities related to Commercial Taxes




Newspaper…………………….……………………..1

Television…………………………………………….2Other Dealers………………………………………..3

CTPs…………..…………………………..…………4


Others (Specify)


Taxes Department?


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)


frequency of use

Frequency of Use


Monthly………………….…… 2



Others (Specify)






Forms

Yes-1 No-2






Online process is more secure……………….……2

Fewer errors in online process…………….………3




Others (Specify)


Please provide the following details with reference to obtaining VAT Statutory Forms

through online and manual modes:

Online Manual

1D. Date of obtaining VAT Statutory Forms – specify month and year

2D. How many trips did you need to make to Commercial Tax Office for obtaining

VAT Statutory Forms?



389


3D. Purpose of each trip and time spent waiting at CTD Office (Including

time spent in queue & transaction time at counter) for availing service -(min)

To submit documents……………………………………1

To correct error in forms issued by CTD……………….2

To track application………………………….............…3

Others (Specify


III

III

IV

V


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. 2Could 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)


Yes – 1

No – 2 7D

6D. Please specify the reasons for excessive wait Long queue……....…1

Officials of CTD are inefficient (slow in processing)……………….2

Too many applicants at office……………………………………….3

Badly managed queue………………………………………….……4

Some windows/counters were not operational…………………...…5

Power breakdown…………………………………………………….6

Computer/network connectivity failure……………………………..7

Others (Specify)

7D. Please specify the travel cost incurred in making a round trip to CTD Office(INR)

8D. Total travel cost incurred in availing service (number of trips X travel cost per

trip) INR


10D. Total travel time spent in availing service (number of trips X travel time per trip)

Min.



390


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: Whydid 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?

Yes – 1; No – 2 16 D


Server is slow………………………………………………………….………1

Others (Specify)

16D. Please calculate the amount spent as salary/wages on total time spent in obtain-ing statutory forms: traveling time + waiting time + time for downloading (man-

hours spent X wage per man-hour) {INR}




obtaining statutory forms, right from the date of applying for it? (Hours)


Yes-1; No-2 Part E

21D. For what purpose did you pay the bribe? (Multiple responses)

To expedite the process……………………………..………………….……1

Others (Specify)



ing attributes:

Mode of Service (Online – O, Manual – M) O M Mode of Service (Online – O, Manual – M) O M

Cost of availing service Time and effort in availing service

Overall experience of availing service from CTD Overall quali ty of governance

Overall quality of service36 Durability and legibility of statutory forms

Clarity and simplicity of processes and procedures Accountability of Officials

Transparency37 in CTD Knowledge of Officials

Predictability of outcome Complaint handling mechanism38& problem resolu-

tion

Ability to influence policies, rules and procedures

through feedback

Convenience of location of center/office (accessibil-

ity and ambience)

Courtesy and helpfulness of Officials Convenience of working hours

Queuing system at CTD Office Level of corruption

Adherence to Citizen Charter 39 Dependence on CTPs

Among the above given factors please list the three factors that you consider the most important


__________

35 Includes a) amount paid to department for which receipt was given, and b) amount paid as bribe to department staff/functionaries36 Quality of service is understood as fairness, speed of processing, accuracy of transactions, legibility and durability of certificates and printouts, con-

venience of obtaining service37 Understanding and awareness of the basis on which decisions affecting you/other users are taken by officials38 Including service provided by Call centre/Helpline39 Adherence of the time frame for service delivery (elapsed time) to that specified in citizen’s charter



391


SUGGESTIONSB. 40


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 Consultant’s Internet

Banking A/C……3

Maintenance of website should not be done during Office Hours of Traders/Tax Consultants……….........…..4


Involve more Banks in E-payment………………………………………………………………………...…..6

Provide templates(w.r.t. returns) that can perform data verification offline…………………….......…...……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 rectified……..............………9

Others (Specify)



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)

____________

40 This part is for all users - manual and online



392


Annexure – E

Rajasthan: Interview Schedule For CTP

(CTPs Using Optional Online Services)

M. IDENTIFICATION DETAILSSl. No. State State Code District District

Code



Town/

Village


Urban………….2

Phone Group41 Division Division Code

Land Line : Mobile: Treatment (online)…..…1



Name Name Name

Code Code Code Distance from Ward Office (Km.) Ward Ward code


N. Profile of Tax Consultant


LLB - 2

Others (Specify)



(INR)

4B. Major services provided to clients (only those for which

service charge is taken), service charge (average)

SERVICE


TAX



Manual Online




No - 2 Part C

____________

41 As per the listing exercise



393


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

Department?

Yes - 1

No - 2 Part D



Newspaper…………………….……………………..1

Television…………………………………………….2

Dealers………..…………………….………………..3

Other CTPs……………..………….……..…………4

Commercial Tax Dep. Official…….………….…….5

Others (Specify)


Department?








Others (Specify)

4C. Have you used any of the online services provided by Commercial

Taxes Department?

Yes – 1

No – 2 7C


use

Frequency of Use

Daily……………………….…….1

Weekly……………………..……2


Monthly…………………….…… 4


Annually…………………………..6

Others (Specify)










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


Others (Specify)



394












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 haveavailed from Commercial Tax Department in last 90 days

A B



Filing Returns……………………………………………………1

Payment………………………………………….........………….2

Registration……………………………………...............………3

Refund…………………………………………..........…………4

Submission of declaration form………………......................…..5


39D. Mode of service: Online – 1; Manual – 240D. Was the online service availed mandatory/optional w.r.t client?




(This section is not applicable for Services: Payment and Seeking Information)

41D. How many man-hours were spent in completing various forms and preparing support-

ing documents for manual filing 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 AFTER FILING RETURNS ONLINE



43D. Total man-hours spent for preparation of documents for filing returns/payment (6D +

7D)

44D. Please calculate the amount spent as salary/wages for preparation of documents for fil-

ing returns/payment (Total man-hours spent X wage per man-hour) {INR}

45D. Cost of stationery42 and photo copies w.r.t filing returns/payment {INR}




____________

42 Ledgers, CDs, printing paper, printing ink, carbon paper etc.43 Internet charges based on hours of internet used for this particular service



395


48D. Total cost of preparation of documents for filing returns/payment (INR)

D- 2: Time and Effort and Cost of Availing Services From Commercial Taxes Department49D. How many trips did you need to make for the service – including trips for error cor-

rection?



To submit documents…………………………………….………......…1

To collect certificate……………………………….………….....…...…2

To correct error in certificate/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 fulfill requirement of physical presence…………………………….8

Others (Specify)


I

II

III

IV

V


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)


Yes – 1

No – 2 17D53D. Please specify the reasons for excessive wait

Long queue………………………………………………….……………1

Officials of CTD are inefficient (slow in processing)…………………….2

Processes are too complex & takes lot of time to complete………..…….3

Too many applicants at office………………………………….......…….4

Badly managed queue……………………………………………………5

Some windows/counters were not operational………………..........……6

Power breakdown……………………………………………………….7

Computer/network connectivity failure………………………………….8

Others (Specify)




396



(APPLICABLE ONLY FOR PAYMENT)56D. Total travel cost incurred in availing service (number of trips X travel cost per trip)

INR




59D. Total travel time spent in availing service (number of trips X travel time per trip)

Min.


MANUAL USERS]

61D. 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]




Others (Specify)

62D. 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]




Server is slow……………………………………………………………….………1

Processes are complex and time consuming……………………………………2

Errors occur while uploading template……………………………………………3

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, PREPA-

RATION OF SUPPORTING DOCUMENTS AND DATA ENTRY




be completed, right from the date of applying to actually receiving the service applied

for? (this does not include time taken for filling forms, preparation of supporting



TO COMPLETE THE TRANSACTION ONLINE PLUS TIME SPENT TO SUB-

MIT HARD COPIES TO CTD

Manual Pro-

cess

Manual Process


Total Total

____________

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



397



Yes-1; No-2 Part E70D. For what purpose did you pay the bribe indicated in the previous question?





Others (Specify)

Q. OVERALL ASSESSMENT



FILING OF RETURNS



PAYMENT OF TAX


COMMON ATTRIBUTES









through feedback






24E. Queuing system at CTD Office 25E. Convenience of location of office (accessibility

and ambience)




____________

45 Quality of service is understood as fairness, speed of processing, accuracy of transactions, legibility and durability of certificates and printouts, con-

venience of obtaining service46Governance is understood as transparency, accountability and corruption-free working47 Understanding and awareness of the basis on which decisions affecting you/other users are taken by officials48Very corrupt-1; Somewhat corrupt-2; Neutral-3; Somewhat less corrupt-4; Not at all corrupt-549 Mechanism to rectify inadvertent errors in forms/documents submitted by Dealers to CTD e.g. computational errors/wrong figures50 Hours of service in case of online services51 Adherence of the time frame for service delivery (elapsed time) to that specified in citizen’s charter



398


SUGGESTIONSC. 52



Eliminate practice of submission of hard copy to CTD…………………………………………………………...……..a

Server speed should be increased…………………………………...……………………………………………………b


Internet Banking A/C……...................................................................................................................................................c

Maintenance of website should not be done during Office Hours of Traders/Tax Consultants……....…………………..d

CTD officials should be given adequate training, so that they can handle queries on online services efficiently………..e

Involve more Banks in E-payment…………………………………………………………………………………….…..f

Provide templates(w.r.t. returns) that can perform data verification offline…………………………………….…...……g

Changes in processes/templates should be immediately communicated to dealers…………………………..…………..h

Others (Specify)



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




399


Annexure – F

Rajasthan: Interview Schedule For CTP

(CTPs Using Mandatory Online Service)

S. IDENTIFICATION DETAILS

Sl. No. State State Code District District Code Date of Interview (DD/MM) Distance from Ward O ffice

(Km.)


Town/Vil-

lage


Urban………….2

Phone Respondent’s Name & Desig-nation


Land Line: Mobile:


Name Name Name

Code Code Code Ward Ward code


T. Profile of Tax Consultant

Educational qualification 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


TAX



Manual Online

Number of staff in your organization who are involved in activi-

ties related to Commercial Taxes

Is the Tax Consultant computer literate? Yes – 1

No - 2 Part C

Has the Tax Consultant used any online E-Gov. service Yes – 1

No - 2

U. AWARENESS AND USAGE OF ONLINE SERVICES



Newspaper…………………….……………………..1

Television…………………………………………….2

Dealers……………..………………………………..3

Other CTPs…..…………………………..…………4


Others (Specify)



400



Taxes Department?








Others (Specify)


frequency of use

Frequency of Use

Daily……………………….…….1

Weekly……………………..……2


Monthly…………………….…… 4


Annually…………………………..6

Others (Specify)






Forms

Yes-1 No-2








Fewer visits to Commercial Taxes Department….4Online process is more transparent……………….5


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:

Online Manual


23D. How many trips did you need to make to Commercial Tax Office for ob-

taining VAT Statutory Forms?

24D. Purpose of each trip and time spent waiting at CTD Office (Includ-

ing time spent in queue & transaction time at counter) for availing

service - (min)

To submit documents………………………………….………...…1

To correct error in forms issued by CTD……….……….…….….2

To track application………………………………………………3

Others (Specify)


I

II

III

IV

V



401


25D. Please see 2 D – if the number of trips is more than one, then ask: Why


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)


trips?

Yes – 1

No – 2 13D


Long queue…………………………………………….………………1

Officials of CTD are inefficient (slow in processing)………………….2

Too many applicants at office………………………………………….3

Badly managed queue…………………………………………….……4

Some windows/counters were not operational……………………..…5

Power breakdown……………….......………………………………….6

Computer/network connectivity failure……………………………….7

Others (Specify)


Office (INR)


per trip) INR


(Min.)


per trip) Min.

32D. How many times did you log-in to download statutory forms?


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)


excessive?

Yes – 1; No – 2 22 D



402



Server is slow…………………………………………………….………1

Others (Specify)


availing service: traveling time + waiting time + time for downloading

(man-hours spent X wage per man-hour) {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)


Yes-1; No-2 Part E


(Multiple rsp.)

To expedite the process………………….………………….……1

Others (Specify)

W. OVERALL ASSESSMENT On a 5 point scale (Dissatisfied-1; Somewhat dissatisfied-2; Neutral-3; Somewhat satisfied-4; Very satisfied-5) please rate the follow-

ing attributes:Mode of Service (Online – O, Manual – M) O M Mode of Service (Online – O, Manual – M) O M

1E. Cost of availing service 2E. Time and effort in availing service

3E. Overall experience of availing service from CTD 4E. Overall quality of governance

5E. Overall quality of service54 6E. Durability and legibility of statutory forms


dures



11E. Predictability of outcome 12E. Complaint handling mechanism56 & problem

resolution


through feedback

14E. Convenience of location of center/office (acces-




19E. Adherence to Citizen Charter 57 20E. Dependence on Officials



____________

53 Includes a) amount paid to department for which receipt was given, and b) amount paid as bribe to department staff/functionaries54 Quality of service is understood as fairness, speed of processing, accuracy of transactions, legibility and durability of certificates and printouts, con-

venience of obtaining service55Understanding and awareness of the basis on which decisions affecting you/other users are taken by officials56 Including service provided by Call centre/Helpline57 Adherence of the time frame for service delivery (elapsed time) to that specified in citizen’s charter



403


SUGGESTIONSD. 58


Eliminate practice of submission of hard copy to CTD…………………………………………...……............1

Server speed should be increased…………………...…………………………………………………............…2


Consultant’s Internet Banking A/C….................................................................................................................…3

Maintenance of website should not be done during Office Hours of Traders/Tax Consultants…………........…..4


Involve more Banks in E-payment……………….…………………………………………………………...…..6

Provide templates(w.r.t. returns) that can perform data verification offline…………………………….…...……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 rectified…………………………9

Others (Specify)



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



404


Annexure – G

Field Work

At the Ward Level, two locations selected on the basis on their distance from Ward Office – 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 turn-•

over, services availed, mode used, dependence on CTPs etc.

Based on information gathered through listing exercise, Dealers were classified as respondents for either Optional•

Online Services (treatment/control group) or Mandatory Online Services (recall method).

Similarly, CTPs were also be classified as respondents for Optional Online Services and Mandatory Online Ser-•

vices. Contact details of CTPs were collected through listing exercise among Dealers



405


Annexure – H

Rajasthan: Dealers Using Optional Online Services






Total 503 100.0



(Online)

Comparison

(Manual)

Total

Jaipur II

A 35 28 63

J 24 33 57

Rajasthan Special 18 9 27

Special 2 18 18 36

Special 8 18 18 36

D 30 36 66

Total 143 142 285

Kota

A 11 12 23

B 12 12 24

Special 12 12 24

Special 2 12 11 23

Total 47 47 94

Bikaner

A 10 8 18

B 7 9 16

Jhunjhunu 8 8 16

Churu 8 8 16

C 2 4 6

Total 35 37 72

Udaipur

A 8 7 15

B 8 9 17

C 5 3 8

Special 7 5 12

Total 28 24 52



406



Location Treatment (Online) Comparison

(Manual)

Total

Rural2 0 2

.8% .0% .4%

Urban251 250 501

99.2% 100.0% 99.6%

Total253 250 503

100.0% 100.0% 100.0%

\



Constitution of enterprise Treatment (Online) Comparison

(Manual)

Total


52.2% 65.2% 58.6%

Partnership50 51 101

19.8% 20.4% 20.1%

Private Limited Company

57 28 85

22.5% 11.2% 16.9%


4.0% 2.4% 3.2%

Hindu Undivided Family3 1 4

1.2% .4% .8%

Co-op society1 1 2

.4% .4% .4%

Total253 250 503

100.0% 100.0% 100.0%



407



Type of business Treatment (Online) Comparison (Manual) Total

Manufacture46 33 79

18.2% 13.2% 15.7%


62.8% 61.2% 62.0%

Retail34 57 91

13.4% 22.8% 18.1%

Export8 4 12

3.2% 1.6% 2.4%

Work contract1 0 1

.4% .0% .2%

Hotels2 0 2

.8% .0% .4%

Food & Drink 1 2 3

.4% .8% .6%

C & F Agent1 1 2

.4% .4% .4%

Others1 0 1

.4% .0% .2%

Total 253 250 503

100.0% 100.0% 100.0%


Registered for VAT Treatment (Online) Comparison (Manual) Total

Yes253 250 503

100.0% 100.0% 100.0%

Total253 250 503

100.0% 100.0% 100.0%


Registered for CST Treatment (Online) Comparison (Manual) Total

Yes38 44 82

15.0% 17.6% 16.3%

No215 206 421

85.0% 82.4% 83.7%

Total253 250 503

100.0% 100.0% 100.0%



408



Mode in which Books of Accounts are main-

tained within the organization


Manual21 127 148

8.3% 50.8% 29.4%


91.7% 49.2% 70.6%

Total253 250 503

100.0% 100.0% 100.0%


Number of staff in the organization in-

volved in activities related to Commercial

Taxes


1188 198 386

74.3% 79.2% 76.7%

246 42 88

18.2% 16.8% 17.5%

313 5 18

5.1% 2.0% 3.6%

≥46 5 11

2.4% 2.0% 2.2%

Total 253 250 503

100.0% 100.0% 100.0%



Aware of Online services of CTD Treatment (Online) Comparison (Manual) Total

Yes253 131 384

100.0% 52.4% 76.3%

No0 119 119

.0% 47.6% 23.7%

Total253 250 503

100.0% 100.0% 100.0%



409



First source of awareness about online ser-

vices


Newspaper 70 45 115

27.7% 34.4% 29.9%

Television5 6 11

2.0% 4.6% 2.9%

Dealers4 4 8

1.6% 3.1% 2.1%

CTPs108 45 153

42.7% 34.4% 39.8%

CTD Official66 30 96

26.1% 22.9% 25.0%

Friend0 1 1

.0% .8% .3%

Total253 131 384

100.0% 100.0% 100.0%




43.1% 23.7%

Application for issue of CST forms 82 30 11232.4% 22.9%


21.3% 15.3%


96.8% 93.9%


8.9% 49.6%


57.3% 29.0%

Declaration Form1 0 1

.4% .0%Total 253 131 384


Used any of the online services provided by

CTD


Yes253 0 253

100.0% .0% 65.9%

No0 131 131

.0% 100.0% 34.1%

Total

253 131 384

100.0% 100.0% 100.0%



410



Reasons for using e-services Treatment (Online) Total

Online process is faster182 182

71.9%


35.2%


24.1%


63.6%


14.2%

It is mandatory44 44

17.4%

Stationery expense can be saved1 1

.4%

No need to visit Bank 2 2

.8%

Can avail services from home1 1

.4%

Total 253 253


Reasons for not using e-services Comparison (Manual) Total


66.4%


25.2%


18.3%


.8%


38.2%


3.8%


13.7%


33.6%

Others1 1

.8%

Total 131 131

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.



411




Services Availed in Last 90 Days Q2D A Mode of service Total

Online Manual


Payment 5 2 7


Total 253 250 503


Services Availed in Last 90 Days Q2D B Mode of service TotalOnline Manual

Payment 18 128 146


Total 50 128 178

The tables given above show that there were sufficient 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 re-

sponses were insufficient to carry out analysis – there were only 23 responses on Online Payment and

nil response in the case of Seeking Information (Manual).


Filing Returns Computer-

ized

Manual Change

(C-M)

Signifi-

cance


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 field reveals that the time required to compile data is directly proportional to

turnover of organization. Dealers filing online returns had higher turnover than manual dealers and therefore they spentmore 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



412


Filing Returns Computer-

ized

Manual Change

(C-M)

Signifi-

canceComment: When compared to manual users, we find 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 Office.

CTD has benefited 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).


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 forthem

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



Cost of access to Internet (INR) 46 NA

N 205

S.E. 2

Mode 50Cost of Statutory Forms and other Forms – including courier

charges (INR)

21.85 30.26 -8.404 *

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 manu-

ally.

Service charge paid to Tax Consultant for preparation of

documents(INR)

841.69 718.81 122.883 NS

N 170 191

S.E. 66.599 42.145

Mode 500 500


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 significantly 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.



413



Time and Cost of Availing Services From Commercial Taxes DepartmentNumber of trips 1.11 1.19 -.082 *

N 205 248

S.E. .038 .030

Mode 1 1

Comment: Both manual and online users have to make at least one trip to CTD office. Manual users, however, had to

make more number of trips when compared to online users.Waiting time (Minutes) 53.6585 56.7540 -3.09550 NS

N 205 248

S.E. 5.12658 2.67069

Mode 30.00 30.00

Travel cost (INR) 66.31 63.93 2.375 NS

N 202 248

S.E. 4.452 2.856

Mode 50 50Travel time (Minutes) 66.90 77.00 -10.100 *

N 202 248

S.E. 4.254 4.017

Mode 60 60


service

2 NA

N 205

S.E. 0

Mode 1


(Minutes)

31 NA

N 205

S.E. 1

Mode 30Comment: According to many online users the server was slow due to which the time taken to complete online trans-



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 availing service (INR)

109.67 68.81 40.858 **

N 205 248

S.E. 10.031 6.082

Mode 50 25

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) 0 0

N 205 248

S.E. 0 0

Mode 0 0

Service charge paid to Tax Consultant for facili-

tating service from CTD Office (INR)

503.13 360.81 142.322 *

N 170 192

S.E. 76.307 34.559

Mode 0 0



414



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) 33.0780 28.6290 4.44902 NS

N 205 248

S.E. 11.77672 11.24566

Mode .00 .00

Total payment made (INR) 450.31 307.96 142.344 **

N 205 248

S.E. 65.014 29.763

Mode 0 0

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 significant 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. Conse-

quently the difference in total payment made also cannot be attributed to the mode of service used.


(Hours).8618 2.5041 -1.64231 **

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.


(Hours)

.7437 NA

N 205

S.E. .05519

Mode .50

Total elapsed time in availing service (Hours) 1.6055 2.5175 -.91203 **

N 205 248

S.E. .14730.37553

Mode 1.00 .50

Comment: Total elapsed time is significantly lower for online service



415




Processes related to the service outsourced Treatment

(Online)

Comparison

(Manual)

Total


17.1% 22.6% 20.1%


82.9% 77.4% 79.9%

Total205 248 453

100.0% 100.0% 100.0%


Reasons for depending on CTP Treatment (Online) Comparison(Manual)

Total


81.8% 89.5%


35.3% 39.3%


10.6% 6.3%


13.5% 15.7%

Others2 0 2

1.2% .0%

Total 170 191 361


Number of trips need to make for the service Treatment(Online)

Comparison(Manual)

Total

03 0 3

1.5% .0% .7%

1184 208 392

89.8% 83.9% 86.5%

215 34 49

7.3% 13.7% 10.8%

32 5 7

1.0% 2.0% 1.5%

≥41 1 2

.5% .4% .4%

Total205 248 453

100.0% 100.0% 100.0%



416



Reasons to make more that one trip? Treatment(Online)

Comparison(Manual)

Total


27.8% 37.5% 34.5%

To follow up, a there was delay n the part of CTD to provideservice

7 11 18

38.9% 27.5% 31.0%

Could not avail service in previous visit as there was a longqueue

2 1 3

11.1% 2.5% 5.2%


5.6% 15.0% 12.1%

Counter was not operational1 2 3

5.6% 5.0% 5.2%

Documents/application submitted by me were incomplete0 4 4

.0% 10.0% 6.9%

Others2 1 3

11.1% 2.5% 5.2%

Total18 40 58

100.0% 100.0% 100.0%


Had to wait excessively for availing service in any of the trips Treatment

(Online)

Comparison

(Manual)

Total

Yes47 68 115

23.3% 27.4% 25.6%

No155 180 335

76.7% 72.6% 74.4%

Total202 248 450

100.0% 100.0% 100.0%



(Online)

Comparison

(Manual)

Total

Long queue/ Too many applicants at office 33 39 7270.2% 57.4% 62.6%


14.9% 26.5% 21.7%


10.6% 10.3% 10.4%


2.1% 5.9% 4.3%

Others1 0 1

2.1% .0% .9%

Total47 68 115

100.0% 100.0% 100.0%



417



Number of times log-in to avail online service Treatment (Online) Total

182 82

40.0% 40.0%

276 76

37.1% 37.1%

318 18

8.8% 8.8%

415 15

7.3% 7.3%

≥514 14

6.9% 6.9%

Total205 205

100.0% 100.0%


Reasons to log-in more than once Treatment (Online) Total


86.2% 86.2%

Templates had changed, therefore it had to be download-

ed first

7 7

5.7% 5.7%

Others10 10

8.1% 8.1%

Total123 123

100.0% 100.0%


Time taken to complete online transaction was exces-

sive

Treatment (Online) Total

Yes86 86

42.0% 42.0%

No119 119

58.0% 58.0%

Total205 205

100.0% 100.0%



418



Reasons for excessive time in online transactions Treatment (Online) Total

Server is slow54 54

62.8% 62.8%


19.8% 19.8%


16.3% 16.3%

Others1 1

1.2% 1.2%

Total86 86

100.0% 100.0%


Paid a bribe directly to OfficialsTreatment

(Online)

Comparison

(Manual)Total

Yes17 20 37

8.3% 8.1% 8.2%

No188 228 416

91.7% 91.9% 91.8%

Total

205 248 453

100.0% 100.0% 100.0%


Purpose to pay bribe Treatment

(Online)

Comparison

(Manual)

Total

To avoid audit assessment by CTD4 2 6

23.5% 10.0%

To influence functionaries to manipulate records in our favor 2 4 6

11.8% 20.0%


76.5% 70.0%

Total 17 20 37



419




Overall Assessment Manual ComputerizedChange

(C-M)Significance


N 247 212

S.E. 0.081 0.093

Cost incurred in filing returns 3.60 3.69 .090 NS

N 247 212

S.E. 0.074 0.081

Design and layout of forms/template 3.26 3.05 -.203 NS

N 66 184

S.E. 0.152 0.087

Time and effort in tax payment 3.41 3.56 .147 NS

N 206 59

S.E. 0.087 0.139

Security of monetary transactions 3.69 3.83 .139 NS

N 206 60

S.E. 0.079 0.131

Overall quality of service 3.52 3.51 -.002 NS

N 250 253

S.E. 0.072 0.069

Overall quality of governance 3.42 3.45 .027 NS N 250 253

S.E. 0.064 0.066

Overall experience of availing service from CTD 3.33 3.33 -.003 NS

N 250 252

S.E. 0.063 0.064

Accuracy of transactions 3.68 3.72 .039 NS

N 250 253

S.E. 0.074 0.072

Confidentiality and security of data 3.70 3.71 .004 NS

N 250 253

S.E. 0.071 0.072

Time and effort in procuring forms 3.09 3.29 .197 *

N 250 253

S.E. 0.071 0.076

Time and effort in accessing information 3.10 3.28 .177 *

N 250 253

S.E. 0.071 0.075

Predictability of Outcome 3.07 3.07 -.001 NS

N 250 253

S.E 0.065 0.064

Clarity and simplicity of processes and proce-dures

3.28 3.30 .024 NS

N 250 253



420


Overall Assessment Manual ComputerizedChange

(C-M)Significance

S.E 0.068 0.069

Accountability of officials 2.84 2.81 -.030 NS

N 250 253

S.E. 0.070 0.071

Transparency in CTD 3.18 3.29 .105 NS

N 250 253

S.E. 0.066 0.067

Knowledge of officials 3.17 3.14 -.026 NS

N 250 253

S.E. 0.069 0.076

Ability to influence policies, rules and procedures

through feedback 3.18 3.28 .109 NS N 250 253

S.E. 0.070 0.068


N 250 253

S.E. 0.060 0.064

Courtesy and helpfulness of officials 2.99 3.15 .162 *

N 250 253

S.E. 0.065 0.069

Problem solution 2.77 2.75 -.025 NS

N 250 253

S.E. 0.062 0.069


N 250 252

S.E. 0.075 0.081


N 250 253

S.E. 0.067 0.067

Queuing system at CTD office 2.82 2.68 -.137 NS

N 250 249

S.E. 0.077 0.077


N 249 252

S.E. 0.078 0.079Adherence to citizen charter 3.01 3.12 .108 NS

N 249 249

S.E. 0.070 0.078

Dependence on CTPs 3.13 3.04 -.089 NS

N 248 251

S.E. 0.077 0.074

Durability and legibility of certificates/receipts 3.31 3.36 .050 NS

N 216 208

S.E. 0.087 0.085



421


Composite Score


Respondents who


be Among Three Most

Important


ScoresImprovement


Factor Number

Percentage

(Column a/

Total of Col-

umn a)

Computerized Manual

Differ-

ence

(Col-

umn c

–

Column

d)

Weighted

Score

(Column e

X

Column b)

Time and effort in filing returns 138 9.1% 3.34 3.23 .110 0.0100


Design and layout of forms/template 26 1.7% 3.05 3.26 -.203 -0.0035

Time and effort in tax payment 28 1.9% 3.56 3.41 .147 0.0028

Security of monetary transactions 57 3.8% 3.83 3.69 .139 0.0053

Overall quality of service 90 6.0% 3.51 3.52 -.002 -0.0001



vice from CTD31 2.1%

3.33 3.33 -.003 -0.0001



data113 7.5% 3.71 3.70 .004 0.0003

Time and effort in procuring forms 64 4.2% 3.29 3.09 .197 0.0083

Time and effort in accessing informa-

tion47 3.1% 3.28 3.10 .177 0.0055

Predictability of outcome 7 0.5% 3.07 3.07 -.001 0.0000

Clarity and simplicity of processes

and procedures24 1.6% 3.30 3.28 .024 0.0004

Accountability of Officials 59 3.9% 2.81 2.84 -.030 -0.0012




and procedures through feedback 22 1.5% 3.28 3.18 .109 0.0016


Courtesy and helpfulness of Offi-

cials68 4.5% 3.15 2.99 .162 0.0073

Problem resolution 73 4.8% 2.75 2.77 -.025 -0.0012



422


Respondents who


Important


Scores

Improvement



(Column a/

Total of Col-

umn a)

Computerized Manual Differ-

ence

(Col-

umn c

–

Column

d)

Weighted

Score

(Column e

X

Column b)

Complaint handling mechanism 41 2.7% 3.26 3.30 -.038 -0.0010


Queuing system at CTD Office 15 1.0% 2.68 2.82 -.137 -0.0014

Convenience of location of office 27 1.8% 3.37 3.54 -.177 -0.0032




cates/receipts12 0.8% 3.36 3.31 .050 0.0004




Suggestions for improving online services (Multiple Responses) N Percent Percent

of Cases



Tax consultants should be allowed to make E-payment on behalf of their

clients – through Consultant’s Internet Banking A/C104 6.5% 20.7%


CTD officials should be given adequate training, so that they can handle

queries on online services efficiently120 7.6% 23.9%

Involve more banks in E-payment 219 13.8% 43.5%

Provide templates (w.r.t. returns) that can perform data verification offline 175 11.0% 34.8%

Changes in processes/templates should be immediately communicated to

dealers249 15.7% 49.5%

Others 5 .3% 1%

Total 1589 100.0%



423



Suggestions to increase usage of e-Services





e-Services to all dealers301 29.1% 59.8%

Online processes should be made much more user friendly

and simple394 38.0% 78.3%

Others 2 .2% .4%

Total 1036 100.0%



424


Annexure – I

Rajasthan: Dealers Using Mandatory Online Services



Division: Jaipur II

Circle N

A 11

J 4

Rajasthan Special 3

Special 2 6

Special 8 7

D 23

Total 54

Division: Kota

Circle N

D 1

A 5

B 4

Special 4

Special 2 4

Total 18

Division: Bikaner

Circle N

A 4

B 3

Jhunjhunu 3

Churu 3

C 2

Total 15

Division: Udaipur

Circle N

A 3

B 3

C 1

Special 3

Total 10



425




Urban 97 100.0




Proprietor 62 63.9

Partnership 12 12.4

Private Limited Company 19 19.6Public Limited Company 3 3.1

Cooperative society 1 1.0

Total 97 100.0



Manufacture 18 18.6

Wholesale 62 63.9

Retail 11 11.3

Export 3 3.1

Banking 1 1.0

Commission Agent 2 2.0

Total 97 100.0


Registered for VAT Frequency Percent

Yes 97 100.0

Total 97 100.0


Registered for CST Frequency Percent

Yes 14 14.4

No 83 85.6

Total 97 100.0


Mode in which Books of Accounts are maintained with-

in the organization

Frequency Percent

Manual 3 3.1


Total 97 100.0



426



Number of staff in the organization involved in activities related to Com-

mercial Taxes

Frequency Percent

1 67 69.1

2 25 25.8

3 3 3.1

5 2 2.1

Total 97 100.0




Newspaper 19 19.6

Television 5 5.2

Dealers 5 5.2

CTPs 33 34.0

CTD Officials 35 36.1

Total 97 100.0


Online services provided by Commercial taxes department Frequency Percent

Application for Registration 37 38.1

Application for issue of CST forms 29 29.9

Application for refund 6 6.2

Filing Returns 24 24.7

Information Dissemination 1 1.0

Total 97 100.0


Reasons for using e-services Responses Percent of Cases

N Percent







Total 255 100.0% 262.9%



427


SECTION D: Time And Effort And Costs Of Availing Service


Obtaining VAT Forms Computerized Manual Change(C-M) Significance


Number of trips 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.


N 5

S.E. 16.55295

Mode 60


N 5

S.E. 34.117

Mode 50


N 5

S.E. 38.471

Mode 60

Number of times user had to log-in to avail on-

line service1.81 NA

N 97

S.E. .116

Mode 1


(Minutes)25.57 NA

N 97

S.E. 2.028

Mode 30


spent in availing service (INR)32.411 78.659 -46.2474 **

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



428




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 officials 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 significant 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


Number of trips make to CTD Frequency Percent

0 97 100.0

Total 97 100.0


Number of times log-in to download VAT forms Frequency Percent

1 47 48.5

2 34 35.1

3 10 10.3

4 3 3.1

5 1 1.0

7 2 2.1

Total 97 100.0



429






Not enough knowledge on online system 2 4.0

Total 50 100.0



Yes 29 29.9

No 68 70.1

Total 97 100.0






No 97 100.0

B. Manual Service


Number of trips make to CTD Frequency Percent

1 72 74.2

2 23 23.7

3 2 2.1

Total 97 100.0


Reasons to make more that one trip Frequency Valid Percent

It was required - as per CTD procedure 12 48.0


service8 32.0

Concerned functionary was not available 5 20.0

Total 25 100.0


Had to wait excessively for availing service Frequency Percent

Yes 28 28.9

No 69 71.1

Total 97 100.0



430



Reason for excessive wait (Multiple Responses) Responses Percent of

Cases

N Percent

Long queue/ Too many applicants at office/ Badly managed queue 17 56.7% 60.8%



Total 30 100.0%



Yes 15 15.5

No 82 84.5

Total 97 100.0


Purpose of bribe Frequency Valid Percent


Total 15 100.0




Cost of availing service 3.83 2.90 .938 **

N 96 96

S.E. .104 .099


N 96 96

S.E. .124 .108


N 96 96

S.E. .105 .107


N 96 96

S.E. .106 .100


N 96 96

S.E. .105 .101

Durability and legibility of statutory forms 3.72 3.02 .698 **

N 96 96

S.E. .115 .109

Clarity and simplicity of processes and procedures 3.52 2.86 .656 **



431



N 96 96

S.E. .112 .111


N 96 96

S.E. .117 .111


N 96 96

S.E. .098 .100


N 96 96

S.E. .122 .112


N 96 96

S.E. .114 .110

Complaint handling mechanism & problem resolu-

tion

3.27 2.77 .500 **

N 96 96

S.E. .127 .118


N 96 96

S.E .099 .110

Convenience of location of centre/office - accessibil-

ity

3.87 3.53 .347 **

N 95 95

S.E .115 .127

Courtesy and helpfulness of Officials 3.34 2.76 .579 **

N 95 95

S.E. .124 .116


N 96 96

S.E. .107 .103


N 92 92

S.E. .137 .118

Level of corruption 3.03 2.54 .792 **

N 92 92

S.E. .137 .118


N 95 95

S.E. .123 .122


N 96 96

S.E. .118 .126



432


Composite Score


Respondents who


be Among Three Most

Important

Average of Indi-

vidual ScoresImprovement


Factor Number

Percentage

(Column a/

Total of Col-

umn a)

Computer-

izedManual

Difference

(Column c

–

Column d)

Weighted

Score

(Column e

X

Column b)


Time and effort in availing service 21 7.2% 3.78 2.86 0.917 0.066024


from CTD10 3.4% 3.73 3.02 0.708 0.024072



Durability and legibility of statutory

forms23 7.9% 3.72 3.02 0.698 0.055142


procedures12 4.1% 3.52 2.86 0.656 0.026896

Accountability of Officials 10 3.4% 3.46 2.56 0.896 0.030464

Transparency in CTD 11 3.8% 3.72 2.95 0.771 0.029298

Knowledge of Officials 26 8.9% 3.36 2.9 0.469 0.041741Predictability of outcome 11 3.8% 3.39 2.9 0.49 0.01862


problem resolution14 4.8% 3.27 2.77 0.5 0.024


procedures7 2.4% 3.47 3.05 0.417 0.010008

Convenience of location of center/of-

fice - accessibility3 1.0% 3.87 3.53 0.347 0.00347

Courtesy and helpfulness of Officials 21 7.2% 3.34 2.76 0.579 0.041688





Dependence on Officials 11 3.8% 3.42 2.79 0.625 0.02375




433




Suggestions for improving online service Responses Percent of Cases

N Percent



Tax consultants should be allowed to make E-payment on behalf of their




queries on online services efficiently37 8.5% 38.1%


Provide templates (w.r.t. returns) that can perform data verification of-

fline39 8.9% 40.2%

Changes in processes/templates should be immediately communicated 61 14.0% 62.9%

In case there are any mistakes in data/documents submitted by dealers,

CTD should inform them immediately50 11.5% 51.6%

Total 436 100.0%



N Percent


Establishment of common service centres to facilitate e-services for al 53 27.0% 54.6%

Online processes should be made much more user friendly and 77 39.3% 79.4%

Total 196 100.0%



434


Annexure – J

Rajasthan: CTPs Using Optional Online Services






Total 153 100.0



(Online)

Comparison

(Manual)

Total

Jaipur II

A 12 12 24

J 10 10 20

Rajasthan Special 5 5 10

Special 2 5 5 10

Special 8 5 5 10

D 5 5 10Total 42 42 84

Kota

A 4 4 8

B 4 4 8

Special 4 5 9

Special 2 3 3 6

Total 15 16 31

Bikaner

A 2 2 4

B 4 4 8

Jhunjhunu 1 2 3

Churu 3 2 5

Total 10 10 20

Udaipur

A 3 3 6

B 2 2 4

C 2 2 4

Special 2 2 4

Total 9 9 18



435



Location Treatment (Online) Comparison (Manual) Total

Urban76 77 153

100.0% 100.0% 100.0%

Total76 77 153

100.0% 100.0% 100.0%



Educational qualification of Tax Consultant Treatment (Online) Comparison (Manual) Total

CA43 42 85

56.6% 54.5% 55.6%

LLB30 30 60

39.5% 39.0% 39.2%

B.Com3 5 8

3.9% 6.5% 5.2%

Total76 77 153

100.0% 100.0% 100.0%


Years of Experience as Tax Consultant Treatment (Online) Comparison (Manual) Total

1-511 23 34

14.40% 29.90% 22.20%

6-1021 18 39

27.60% 23.40% 25.50%

11-1516 11 27

21.00% 14.30% 17.80%

16-2010 6 16

13.1% 7.8% 10.5%

21-255 12 17

6.5% 15.6% 11.2%

>2513 7 20

17.00% 9.10% 13.30%

Total 76 77 153

100.0% 100.0% 100.0%



436





Treatment

(Online)

Comparison

(Manual)

Total

19 24 33

11.8% 31.2% 21.6%

235 36 71

46.1% 46.8% 46.4%

316 9 25

21.1% 11.7% 16.3%

47 5 12

9.2% 6.5% 7.8%

5

7 3 10

9.2% 3.9% 6.5%

>52 0 2

2.6% .0% 1.4%

Total 76 77 153

100.0% 100.0% 100.0%


Tax Consultant is computer literate Treatment

(Online)

Comparison

(Manual)

Total

Yes76 61 137

100.0% 79.2% 89.5%

No0 16 16

.0% 20.8% 10.5%

Total 76 77 153

100.0% 100.0% 100.0%


Tax Consultant used any online e-Gov. service Treatment

(Online)

Comparison

(Manual)

Total

Yes76 19 95

100.0% 31.1% 69.3%

No0 42 42

.0% 68.9% 30.7%

Total76 61 137

100.0% 100.0% 100.0%



437




Aware of online services of CTD Treatment (Online) Comparison (Manual) Total

Yes76 69 145

100.0% 89.6% 94.8%

No0 8 8

.0% 10.4% 5.2%

Total76 77 153

100.0% 100.0% 100.0%


First source of awareness about online services Treatment (Online) Comparison (Manual) Total

Newspaper 22 19 41

28.9% 27.5% 28.3%

Television5 3 8

6.6% 4.3% 5.5%

Other CTPs4 9 13

5.3% 13.0% 9.0%

CTD Official43 34 77

56.6% 49.3% 53.1%

Others

2 4 6

2.6% 5.8% 4.1%

Total76 69 145

100.0% 100.0% 100.0%




67.1% 65.2%

Application for issue of CST forms49 43 92

64.5% 62.3%


57.9% 47.8%


97.4% 97.1%


75.0% 66.7%


60.5% 68.1%

Total 76 69 145



438



Used any of the online services provided byCTD


Yes76 0 76

100.0% .0% 52.4%

No0 69 69

.0% 100.0% 47.6%

Total76 69 145

100.0% 100.0% 100.0%


Reason for using online services Treatment (Online) Total

Online process is faster 56 5673.7%


38.2%


27.6%


60.5%


28.9%

It is mandatory22 22

28.9%Total 76 76


Reasons for not using online services Comparison (Manual) Total


42.0%


23.2%


20.3%


7.2%


47.8%


5.8%


39.1%

Have to submit hard copy to CTD37 37

53.6%

Others1 1

1.4%

Total 69 69



439






Payment 1 0 1

Seeking information 0 1 1

Total 76 77 153




Payment 10 21 31

Registration 3 8 11

Total 13 30 43

Note: Since there aren’t sufficient numbers of responses for the following services: Registration, Payment and Seeking

Information they have not been analyzed.


Filing of Returns Computerized Manual Change(C-M) Significance


Man-hours were spent in compiling data 3.3688 3.6162 -.24738 NS N 75 76

S.E. .36604 .45675

Mode 2.00 2.00


template1.77 NA

N 75

S.E. .32

Mode 1.00

Total man-hours for preparation of documents 5.0605 3.9846 1.07593 NS

N75 76

S.E. .58379 .57098

Mode 3.00 2.00

Salary/wages for preparation of documents

(INR)143.28 92.86 50.425 **

N 75 76

S.E. 13.558 11.691

Mode 100 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 (although statistically it is not significant) and therefore

the salary/wages spent is also higher for them



440




(INR)47.43 67.80 -20.376 **

N 75 76

S.E. 4.966 6.727

Mode 50 100



Cost of access to Internet (INR) 32 NA

N 75

S.E. 3Mode 50


Cost of Statutory Forms and other Forms – in-

cluding courier charges (INR)28.16 34.70 -6.537 NS

N 75 76

S.E. 5.653 4.123

Mode 0 0


N 75 76

S.E. 20.436 16.248

Mode 205 70

Comment: Total cost of preparation of documents for online users is significantly 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 Com-

mercial Taxes Department


N 75 76

S.E. .063 .051

Mode 1 1

Comment: There is no significant 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 -11.7836 *

N 72 76

S.E. 5.26022 3.80026

Mode 30.00 60.00

Comment: Waiting time for online users is significantly 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 officers of CTD before receipt of submission is issued.

Travel cost (INR) 50.28 61.71 -11.433 NS



441



N 72 76

S.E. 6.174 7.032

Mode 50 50


N 72 76

S.E. 4.008 13.859

Mode 30 60

Number of times user had to log-in to avail on-

line service3 NA

N 75

S.E. 0Mode 2


(Minutes)43 NA

N 75

S.E. 4

Mode 30

Comment: According to many online users the server was slow due to which the time taken to complete online trans-



the error and upload the template yet again. This leads to wastage of time. Some CTPs said that the online process iscomplex and therefore time consuming.


in availing service (INR)71.87 64.78 7.090 NS

N 75 76

S.E. 8.800 7.460

Mode 31 25


N 75 76

S.E. 0 0

Mode 0 0

Amount paid as bribe (INR) 15.0400 30.2500 -15.21000 *

N 75 76

S.E. 4.50383 7.01425

Mode .00 .00

Comment: Online users paid significantly less

amount of bribe than manual users

Total payment made (INR) 15.04 30.25 -15.210 *

N 75 76

S.E. 4.504 7.014

Mode 0 0



442



Comment: The difference seen can be attributed to amount of bribe paid, which is significantly less in the case of online

users.


(Hours)1.3472 1.8818 -0.53464 NS

N 75 76

S.E. .47342 .43084

Mode .50 1.00

Comment: Although it is not significant statistically, online users spent less time – this is because returns of online us-

ers are not scrutinized at the counter of CTD.


(Hours)

1.0447 NA

N 75

S.E. .23736

Mode .50

Total elapsed time in availing service (Hours) 2.9765 1.5266 1.44995 NS

N 75 76

S.E. .89711 .18781

Mode 1.50 1.00

Comment: There is no significant difference between online and manual modes in terms of total elapsed time in avail-

ing service.



Number of trips make for the service Treatment (Online) Comparison (Manual) Total

03 0 3

4.0% .0% 2.0%

166 65 131

88.0% 85.5% 86.8%

23 9 12

4.0% 11.8% 7.9%

32 2 4

2.7% 2.6% 2.6%

41 0 1

1.3% .0% .7%

Total75 76 151

100.0% 100.0% 100.0%



443



Reasons to make more that one trip Treatment (Online) Comparison (Manual) Total


.0% 9.1% 5.9%

To follow up, as there was delay n the part of

CTD to provide service

2 1 3

33.3% 9.1% 17.6%

Could not avail service in previous visit as there

was a long queue

0 2 2

.0% 18.2% 11.8%


16.7% 54.5% 41.2%

Counter was not operational3 0 3

50.0% .0% 17.6%


incomplete

0 1 1

.0% 9.1% 5.9%

Total 6 11 17

100.0% 100.0% 100.0%


Had to wait excessively for availing service in any of

the trips?

Treatment

(Online)

Comparison

(Manual)

Total

Yes18 24 42

25.0% 31.6% 28.4%

No54 52 106

75.0% 68.4% 71.6%

Total72 76 148

100.0% 100.0% 100.0%


Reasons for excessive wait Treatment (Online) Comparison (Manual) Total


50% 58.3% 54.7%


27.8% 25.0% 26.2%Processes are too complex & take lot of time to com-

plete

3 2 5

16.7% 8.3% 11.9%


5.6% 4.2% 4.8%

Others0 1 1

.0% 4.2% 2.4%

Total18 24 42

100.0% 100.0% 100.0%



444



Number of times log-in to avail online service Treatment (Online)

Frequency Valid Percent

3 4 5.3

4 5 6.7

5 5 6.7

>5 7 9.3

Total 75 100.0


Reasons to log-in more than once Treatment (Online)

Frequency Valid PercentService was not available as server was slow 44 81.5


Others 5 9.3

Total 54 100.0


Time taken to complete online transaction was excessive Treatment (Online)


Yes 42 56.0

No 33 44.0

Total 75 100.0


Reasons for excessive time Treatment (Online)



Process is complex and time consuming 16 38.1

Errors occur while uploading templates 6 14.3

Total 42 100.0


Paid a bribe directly to officials Treatment (Online) Comparison (Manual) Total

Yes 17 17 34

22.7% 22.4% 22.5%

No 58 59 117

77.3% 77.6% 77.5%

Total 75 76 151

100.0% 100.0% 100.0%



445



Purpose of bribe Treatment (Online) Comparison (Manual) Total

To avoid audit assessment by CTD 3 0 3

17.6% .0% 8.8%

To influence functionaries to manipulate records

in your favor

3 4 7

17.6% 23.5% 20.6%

To expedite the process 10 13 23

58.8% 76.5% 67.6%

Others 1 0 1

5.9% .0% 2.9%

Total 17 17 34

100.0% 100.0% 100.0%




(C-M)Significance


N 76 76S.E. .159 .150Cost incurred in filing returns

3.41 3.43-.026 NS

N 76 76S.E. 0.148 0.132Design and layout of forms/template 2.78 2.85 -.078 NS

N 67 41S.E. 0.175 0.217Time and effort in tax payment 3.09 3.28 -.190 NS

N 34 54S.E. 0.176 0.153Security of monetary transactions 3.21 3.37 -.163 NS

N 34 57S.E. 0.192 0.136Overall quality of service 3.32 3.26 .056 NS

N 76 77S.E. 0.131 0.125

Overall quality of governance 2.99 2.96 .026 NS N 76 77S.E. 0.128 0.126Overall experience of availing service from

CTD 3.12 3.25

-.128 NS

N 76 77S.E. 0.117 0.137Accuracy of transactions 3.62 3.08 .540 **

N 76 77S.E. 0.149 0.143Confidentiality and security of data 3.66 3.3 .359 *

N 76 77S.E. 0.137 0.135Time and effort in procuring forms 3.03 3.13 -.104 NS

N 76 77



446



(C-M)

Significance

S.E. 0.147 0.134Time and effort in accessing information 3.24 3.06 .175 NS N 75 77S.E. 0.162 0.136Predictability of Outcome 2.93 3.05 -.119 NS N 75 77S.E 0.132 0.138Clarity and simplicity of processes and

procedures3.07 3.21 -.142 NS

N 76 77S.E 0.132 0.131Accountability of officials 2.55 2.74 -.188 NS N 76 77

S.E. 0.155 0.147Transparency in CTD 2.93 2.97 -.040 NS N 76 77S.E. 0.123 0.131Knowledge of officials 2.41 2.81 -.397 ** N 76 77S.E. 0.127 0.147Ability to influence policies, rules and proce-

dures through feedback 2.88 3.04 -.157 NS

N 76 77S.E. 0.126 0.15Level of corruption 2.12 2.51 -.388 ** N 76 77S.E. 0.127 0.146

Courtesy and helpfulness of officials 3 2.78 .221 NS N 76 77S.E. 0.138 0.135Problem solution 2.74 2.81 -.068 NS N 76 77S.E. 0.133 0.14Complaint handling mechanism 2.67 2.75 -.075 NS N 67 75S.E. 0.161 0.159

Convenience of working hours 3.14 3.08 .067 NS N 76 77S.E. 0.142 0.143Queuing system at CTD office 3.17 3.01 .154 NS N 72 77S.E. 0.136 0.127

Convenience of location of office 3.83 3.31 .515 ** N 75 77S.E. 0.149 0.147Adherence to citizen charter 2.92 2.83 .089 NS N 73 76S.E. 0.153 0.139

Durability & legibility of certificates/receipts 3.5 3.27 .227 NS N 74 77S.E. 0.139 0.13



447


Composite Score


Respondents who


be Among Three Most

Important


Scores

Improvement



(Column a/

Total of

Column a)


(Column c

–

Column

d)

Weighted

Score

(Column e

X

Column b)

Time and effort in filing returns 55 12.0% 3.13 3.13 0 0

Cost incurred in filing returns 16 3.5% 3.41 3.43 -0.026 -0.00091

Design and layout of forms/

template9 2.0% 2.78 2.85 -0.078 -0.00156

Time and effort in tax payment 4 .9% 3.09 3.28 -0.19 -0.00171

Security of monetary transactions 28 6.1% 3.21 3.37 -0.163 -0.00994




service from CTD5 1.1% 3.12 3.25 -0.128 -0.00141

Accuracy of transactions 24 5.2% 0.54 0.02808


data19 4.1% 3.66 3.3 0.359 0.014719


forms32 7.0% 3.03 3.13 -0.104 -0.00728


information25 5.4% 3.24 3.06 0.175 0.00945

Predictability of outcome 2 .4% 2.93 3.05 -0.119 -0.00048


processes and procedures10 2.2% 3.07 3.21 -0.142 -0.00312

Accountability of Officials 31 6.8% 2.55 2.74 -0.188 -0.01278




and procedures through feedback 11 2.4% 2.88 3.04 -0.157 -0.00377

Level of corruption 41 8.9% 2.12 2.51 -0.388 -0.03453


Officials10 2.2% 3 2.78 0.221 0.004862



448


Respondents who


Important


Scores

Improvement



(Column a/

Total of

Column a)


(Column c

–

Column

d)

Weighted

Score

(Column e

X

Column b)



Convenience of location of office 12 2.6% 3.83 3.31 0.515 0.01339Adherence to Citizen Charter 6 1.3% 2.92 2.83 0.089 0.001157



8 1.7% 3.5 3.27 0.227 0.003859

Total (Sum of column) 459 -0.01528



Suggestions for improving online service Responses Percent of Cases

N Percent



Tax consultants should be allowed to make E-payment on behalf of




queries on online services efficiently

55 10.1% 35.9%

Involve more banks in E-payment 74 13.6% 48.4%


offline70 12.9% 45.8%

Changes in processes/templates should be immediately communicated

to users73 13.4% 47.7%

Mistakes in database maintained by CTD w.r.t. addresses of dealers

must be rectified3 .6% 2.0%

Others 3 .6% 2.1%

Total 544 100.0%



449



Suggestions to increase use of e-Service N Percent Percent of Cases

Awareness campaigns on online services for users 99 34.0% 64.7%

Establishment of common service centres to facilitate e-services to

all70 24.1% 45.8%

Online processes should be made much more user friendly & simple 118 40.5% 77.1%

Others 4 1.3% 2.7%

Total 291 100.0%



450


Annexure – K

Rajasthan: Dealers Using Mandatory Online Services



Division: Jaipur II

Circle N

A 7

J 7

Rajasthan Special 4Special 2 4

Special 8 3

D 4

Total 29

Division: Kota

Circle N

A 3

B 3

Special 1

Special 2 3

Total 10Division: Bikaner

Circle N

A 2

B 2

Jhunjhunu 1

Churu 2

Total 7

Division: Udaipur

Circle N

A 2

B 2C 1

Special 1

Total 6



Urban 52 100.0



451



Table 3: Qualification of CTP


CA 32 61.5

LLB 14 26.9

B.Com 6 11.5

Total 52 100.0

Table 4: Experience of CTP

Years of Experience as Tax Consultant Frequency Percent

1-5 11 21

6-10 13 24.9

11-15 16 30.8

16-20 2 3.8

21-25 3 5.7

>25 7 13.4

Total 52 100.0




Frequency Percent

1 6 11.5

2 24 46.2

3 11 21.2

4 2 3.8

5 4 7.7

>5 5 9.6

Total 52 100.0



Yes 52 100.0

Total 52 100.0

Table 7: Experience of CTP in using online services


Yes 52 100.0



452





Newspaper 14 26.9

Other CTPs 2 3.8

CTD official 34 65.4

Others 2 3.8

Total 52 100.0


e-Services of CTD N Percent Percent of Cases


Application for issue of CST forms 43 17.8% 82.7%





Total 241 100.0%


Reasons for using e-Services N Percent Percent of Cases







Total 118 100.0%



453


SECTION D: Time And Effort And Costs Of Availing Service



Time and Cost of Availing Service From Commercial Taxes Department

Number of trips 0 1.52 -1.52 **

N 52 52

S.E. 0 .089

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.


N 52

S.E. 7.25

Mode 60.00

Total travel cost (INR) NA 69.52

N 52

S.E. 7.961

Mode 100

Total travel time (Minutes) NA 86.94

N 52

S.E. 14.293

Mode 60


service

2.35 NA

N 52

S.E. .256

Mode 2


(Minutes)

31.25 NA

N 52

S.E. 4.3

Mode 30


in availing service (INR)

15.894 74.673 -58.7788 **

N 52 52

S.E. 2.1467 12.0109

Mode 21.0 50.0

Comment: The difference is because online users do not have to visit CTD to obtain VAT forms



454




N 52 52

S.E. .000 .000

Mode 0 0

Amount paid as bribe (INR) 0 27.3077 -27.3077 **

N 52 52

S.E. 0 6.93710

Mode .00 .00

Comment: Online users do not have to approach CTD officials for VAT forms – they can download it – therefore, they

did not pay bribes.

Total payment made (INR) 0 27.31 -27.308 **

N 52 52

S.E. 0 6.937

Mode 0 0

Comment: As there is no service charge, the only payment made is bribes.

Total elapsed time in availing service (Hours) .6721 12.5194 -11.84731 **

N 52 52

S.E. .10719 1.96596

Mode .50 24.00

Comment: There is significant 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



0 52 100.0


Number of times log-in to download statutory Frequency Percent

1 18 34.6

2 19 36.5

3 7 13.5

4 3 5.8

5 3 5.8

>5 2 3.8

Total 52 100.0



455





Error in computer (at user end) 2 5.9

Error in server (at service provider end) 2 5.9

Total 34 100.0



Yes 29 55.8

No 23 44.2

Total 52 100.0




Process is complex 3 10.3

Total 29 100.0


Paids a bribe directly to Officials Frequency Percent

No 52 100.0

Total 52 100.0

B. Manual Service



1 29 55.8

2 19 36.5

3 4 7.7

Total 52 100.0



456




N Percent


To follow up, as there was delay on the part of CTD to

provide service7 24.1% 30.4%

Could not avail service in previous visit as there was a

long queue2 6.9% 8.7%



Documents/application submitted by me were incom-

plete 2 6.9% 8.7%

Total 29 100.0%



Yes 24 46.2

No 28 53.8

Total 52 100.0


Reasons for excessive wait Frequency Valid Percent

Long queue/ Too many applicants at office 11 45.8

Officials of CTD are inefficient (slow in processing) 11 45.8

Some windows/counters were not operational 2 8.3

Total 24 100.0



Yes 13 25.0

No 39 75.0

Total 52 100.0


Purpose to pay the bribe Frequency Valid Percent




457






N 52 52

S.E. .136 .165


N 52 52

S.E. .170 .144

Overall experience of availing service from CTD 3.12 2.98 .135 NS

N 52 52

S.E. .175 .166


N 51 51

S.E. .161 .146


N 52 52

S.E. .183 .172

Durability and legibility of statutory forms 3.33 2.96 .365 *

N 52 52

S.E. .166 .155


N 51 51

S.E. .170 .168


N 50 50

S.E. .188 .164


N 52 52

S.E. .166 .145

Knowledge of Officials 2.71 3.20 -.490 ** N 51 51

S.E. .203 .161

Predictability of outcome 3.00 2.67 .327 NS

N 52 52

S.E. .190 .162

Complaint handling mechanism & problem reso-

lution

2.78 2.94 -.160 NS

N 50 50

S.E. .192 .184

Ability to influence policies, rules and procedures 2.86 2.92 -.059 NS



458



N 51 51

S.E .190 .177

Convenience of location of centre/office - accessi-

bility3.84 3.39 .451 **

N 51 51

S.E .162 .171


N 51 51

S.E. .159 .150


N 51 51S.E. .177 .166


N 48 48

S.E. .195 .168


N 51 51

S.E. .177 .166


N 51 51

S.E. .187 .151


N 51 51

S.E. .191 .169



459


Composite Score


Respondents who


be Among Three Most

Important


Scores

Improvement



(Column a/

Total of

Column a)


(Column c

–

Column d)

Weighted

Score

(Column e

X

Column b)

Time and effort in availing serv-

ice9 5.8% 3.4 2.52 0.885 0.05133


service from CTD4 2.6% 3.12 2.98 0.135 0.00351



Durability and legibility of stat-

utory forms6 3.8% 3.33 2.96 0.365 0.01387

Clarity and simplicity of proc-

esses and procedures1 .6% 2.96 3.08 -0.118 -0.00071

Accountability of Officials 8 5.1% 2.98 2.96 0.02 0.00102

Transparency in CTD 10 6.4% 3.52 2.67 0.846 0.054144


Predictability of outcome 8 5.1% 3 2.67 0.327 0.016677

Complaint handling mechanism

& problem resolution5 3.2% 2.78 2.94 -0.16 -0.00512


rules and procedures4 2.6% 2.86 2.92 -0.059 -0.00153

Convenience of location of cen-

tre/office - accessibility4 2.6% 3.84 3.39 0.451 0.011726

Courtesy and helpfulness of Of-

ficials7 4.5% 3.16 2.92 0.235 0.010575





Dependence on Officials 8 5.1% 3.22 2.45 0.765 0.039015




460




Suggestions to improve e-services N Percent Percent of Cases



Tax consultants should be allowed to make E-payment on behalf

of clients11 4.6% 21.2%


CTD officials should be given adequate training, so that they can

handle queries on online services efficiently26 10.8% 50.0%


Provide templates (w.r.t. returns) that can perform data verifica-

tion offline19 7.9% 36.5%


nicated30 12.5% 57.7%

In case of discrepancy in data/documents submitted by dealers,


Mistakes in database maintained by CTD w.r.t addresses of deal-

ers should be rectified1 .4% 1.9%

Total 240 100.0%


Suggestions to increase use of e-service N Percent Percent of Cases



e-services to all27 24.1% 51.9%

Online processes should be made much more user friendly

and42 37.5% 80.8%

Total 112 100.0%



Tamil Nadu


2010



463

Acknowledgments





IIM, Ahmedabad.



Mr. P.K. Pujari, Commissioner, Commercial Taxes Department, Government of Gujarat, has facilitatedthe 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.


Director, RDI



464

Table of Contents

1.0 Introduction .............................................................................................................................. 467


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



465








466

Executive Summary

The Commercial Taxes Department of Tamil Nadu has introduced online services including e-filing

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).


schedules were used in the survey, which covered 801 end-users in four Divisions of Tamil Nadu.

This report summarizes major findings of this survey.


Data obtained from Commercial Taxes Department, Tamil Nadu showed that about 90% dealers were

filing 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.


Preparation of documents: Total man-hours spent for preparation of documents (manually) and total

cost of preparation of documents has reduced significantly, 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 office. Online service, therefore, has not been successful in eliminating visits to office.

However, w.r.t waiting time and total elapsed time in availing service, there has been significant

positive impact due to online service – both waiting time and total elapsed time in availing service is

significantly 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 significant impact – they have eliminated trips to Banks/Treasuries/

CTD Office and also significantly reduced total elapsed time in availing service.



467

Impact Assessment of Commercial Taxes Computerization 2010-Tamil Nadu

1.0 Introduction







In the current round of assessment (2nd round) RDI has been entrusted with impact assessment

of Commercial Taxes e-Governance Projects in five 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.






Commercial Taxes Department (CTD) of Tamil Nadu has introduced many online services1 for dealers

including e-filing 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 five major sections, each with specific objectives:


(CTPs).



users prefer online services over manual services.





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 online5.

services and increasing usage of online services.

__________

1

Electronic service delivery launch date: January 2008



468






Filing of returns (1/4/2008 to 1/7/2009)2 28% 72% NA NA

Information Dissemination3 (Aprox. Figures) 60% 40% 60% 40%

Application of statutory and other forms4 100% 100%



E-submission of declaration form* 90% 10% 90% 10%

Issue of VAT Forms2 0 100% 100% 0

Source: Commercial Taxes Department, Tami Nadu



There was only one major online service in Tamil Nadu in July 2009: e-returns.1. Table 1 give

details of online services in the State and service wise percentage of users.

As of August 2009, almost 90% dealers (80% mandatory dealers +10% voluntary) were filing2.

returns online. Only 10% dealers were filing manual returns.

During pilot study we understood that many dealers in Tamil Nadu relied (either partially or fully)3.

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.


activity level and geographical location for selection of Divisions and Zones. Please refer Annexure

A for details on research design and sampling methodology.


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 crore3 Including application tracking4 Only application can be made online – forms are send through courier service. Online application for statutory and other forms started after April 095 Only application can be made online – it is not an end-to-end service - started after April 096 Only application can be made online – it is not an end-to-end service - started after April 09



469



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.


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 filing e-returns in August 2009 – this

percentage must have surely increased by now (March 2010). It may therefore be assumed that almostall 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




It is mandatory•





Detailed (questionnaire wise) tables are given in Annexure D & E.


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 weren’t sufficient responses on them.



470



Dealers registered with the CTD are required to file returns periodically, monthly/ bi-monthly/

quarterly/annually depending on turnover of dealer, in a prescribed format. Filing Returns has two

major components:





Most dealers take help from CTPs for either one or both components mentioned above, mainly because:

dealers lack sufficient knowledge to prepare returns; they want to ensure that the data submitted to

CTD is free of errors.


are given below:


Manual Online


(using various forms such as VAT forms,CST forms) in the format specified by the

department

Dealer submits the original return docu-2.

ments to CTD. After verification of return

documents by the clerk/CTI, the dealer re-

ceives a receipt of submission




Dealer compiles data, which is to be submit-1.

ted to CTD, manually.

Dealer has to login to his/her account on the2.

website of the department and enter data on-

line. The dealer also has to upload excel files

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 ac-3.

knowledgement from CTD

Dealer has to submit a hard copy of the re-4.

turn (print out of template) to CTO Office

and receive a receipt of submission - receipt

is given without verification as the dealer has




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.



471



Total man-hours for preparation of documents (manually)

Table 3: Total man-hours for preparation of documents for Filing of Returns


Dealer 3.8571 2.418 -1.43905 **

CTP 3.101 2.1384 -.96263 **

Total man-hours spent for preparation of documents (manually) is significantly lesser in online

mode.


3.8571

2.418

-1.43905

3.101

2.1384

-0.96263

-2

-1

0

1

2

3

4

5

Dealers CTPs




472



Table 4: Total cost of preparation of documents (INR)


Dealer 547.18 480.13 -67.048 **

CTP 301.61 245.29 -56.318 **

Total cost of preparation of documents has reduced significantly for both categories of users (dealers

and CTPs) as a result of shifting to online mode.


-67.048

480.13

547.18

-56.318

245.29

301.61

-100

0

100

200

300

400

500

600


Delers CTPs



473






Dealer 1 1 -.002 NS

CTP 1.04 1.01 -.030 **

In the online mode users have to make at least one trip to CTD office to submit hard copy of returns.

Number of Trips

1

1

-0.002

1.041.01

-0.03

-0.2

0

0.2

0.4

0.6

0.8

1

1.2


Dealers CTPs



474





Dealer 66.89 39.92 -26.964 **

CTP 50.7 31.87 -18.828 **

Waiting time has reduced significantly - this is because hard copies of returns submitted by online

users are not scrutinized at the counter.

__________


Amount spent as salary/wages on total time spent in availingservice

1.604

49.7148.11

3.152

48.33

45.18

0

10

20

30

40

50

60


Dealers CTPs



475





Dealer 48.11 49.71 1.604 *

CTP 45.18 48.33 3.152 **

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.

___________



1.604

49.7148.11

3.152

48.33

45.18

0

10

20

30

40

50

60


Dealers CTPs



476


__________


functionaries




Dealer 17.45 17.19 -.267 NS

CTP .00 .00 .00

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.

Total payment made (INR)

-0.267

17.1917.45

000

-2

0

2

4

6

8

10

12

14

16

18

20


Dealers CTPs



477





Dealer 2.8891 1.8584 -1.03068 **

CTP 2.4651 1.9217 -.54338 **

Total elapsed time has reduced significantly. This is mainly because of reduction in waiting time at

CTD office.


-1.03068

1.8584

2.8891

-0.54338

1.92172.4651

-1.5

-1

-0.5

0

0.5

1

1.5

2

2.5

3

3.5




478


__________

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

4.2 Tax Payment

Dealers have to make periodic Tax Payments to CTD as per the tax calculated in the returns filed by

them.

Major difference between Manual and Online Tax Payment is given below:

Manual Online

Payment is accepted in Banks/Treasuries

Dealers have to fill challan (Banks/Treasuries) -

giving payment details

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 andtherefore dealers do not make separate trips for

this.

Dealers can make payment online through

their online Bank Accounts10. There is no

need to visit Bank/Treasury to make pay-

ment

e-forms are filled by dealers (giving payment

details) and after this the software leads user

to selected Bank’s gateway

After online payment, hard copy of e-challan

is provided through Bank’s 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



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 sufficient for analysis.



479


Number of trips to Bank/Treasury



Dealer 1.00 .00 -1 **

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.

Number of Trips

01

-1

-1.5

-1

-0.5

0

0.5

1

1.5




480





Dealer 32.54 12.76 -19.778 **

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.

__________



service

-19.778

12.76

32.54

-30

-20

-10

0

10

20

30

40




481


Total payment Made



Dealer .00 .00 .00 NS

Dealers did not make any payment - none of the dealers paid service charge to CTPs or bribes.




Dealer 1.3237 .4735 -.85016 **

Total elapsed time has reduced significantly, because in the online mode users need not visit bank/

treasury to make payments.


1.3237

0.4735

-0.85016

-1

-0.5

0

0.5

1

1.5




482


4.3 Obtaining Information from CTD

Dealers and CTPs regularly seek information from CTD – this may be regarding circulars, notifica-

tions, commodities rates, acts, rules, tracking applications etc.

In the manual mode, dealers/CTPs need to visit Office of CTD to obtain this information. In the on-

line mode, however, most of this information is available on the website of CTD. In case the informa-

tion sought is not available on the website, users can contact concerned officials through e-mail and

obtain it.

Responses of 500 dealers and 151 CTPs, regarding this service, have been analyzed using Paired-

Samples T Test.

Number of trips to CTD Office


Obtaining Information Manual Computerized Change (C-M) Significance

Dealer 1.00 .00 -1 **

CTP 1.00 .00 -1 **

In the online mode, users did not visit CTD office for seeking information – it was obtained either

from website or through e-mails.

Number of Trips

01

-1

10

-1

-1.5

-1

-0.5

0

0.5

1

1.5


Dealers CTPs



483





Dealer 32.74 12.27 -20.470 **

CTP 33.49 12.55 -20.940 **

Amount spent as salary/wages has decreased significantly as the need to visit CTD office has been

eliminated.

______ 12Traveling time + waiting time + time for online transaction (man-hours spent X wage per man-hour)


-20.47

12.27

32.74

-20.94

12.55

33.49

-30

-20

-10

0

10

20

30

40


Dealers CTPs



484


Total payment Made



Dealer .16 .16 .00 NS

CTP .00 .00 .00 NS

While CTPs did not make any payment in both the modes, dealers made some payment (service

charge to CTPs) for obtaining information.




Dealer 1.3894 .4795 -.90982 **

CTP 1.5783 .4352 -1.14311 **

Total elapsed time in availing service has reduced significantly as users can obtain information from

their offices - without visiting CTD office.


1.3894

0.4795

-0.90982

1.5783

0.4352

-1.14311

-1.5

-1

-0.5

0

0.5

1

1.5

2


Dealers CTPs



485


_________

13

There were 23 attributes for dealers and CTPs


Dealers and CTPs were asked to rate some attributes13 w.r.t services provided by CTD on a five 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

significant 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


section: Overall Assessment. Results are given in the figure below:



Eliminate practice of submission of hard copy to CTD (w.r.t e-filing)1.

Server speed should be increased2.

CTD officials should be given adequate training, so that they can handle queries on online ser-3.

vices efficiently

Provide templates (w.r.t. returns) that can perform data verification offline4.

Changes in processes/templates should be immediately communicated to users5.


Awareness campaigns on online services for users1.

Establishment of common service centres to facilitate e-services to all2.

Online processes should be made much more user friendly & simple3.

Composite Score

0.342011

0.498702

0

0.1

0.2

0.3

0.4

0.5

0.6Dealers

CTPs



486


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 Officers and 81 by

Deputy Commercial Tax Officers), 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)


M O M O

Filing of returns (1/4/2008 to 1/7/2009)14 28%

(51893)

72%

(132417) NA NA

Information Dissemination15 (Aprox. Figures) 60% 40% 60% 40%

Application of statutory and other forms16 100% 100%



Source: Commercial Taxes Department, Tamil Nadu

Discussion with officials revealed the following:

Currently (as of August 2009) in Tamil Nadu almost 90% (80% mandatory dealers +10% vol-

untary) dealers are filing returns online. Only 10% dealers are filing manual returns

Those filing manual returns are small dealers – mostly from villages with no computer facil-

ity. These dealers will be covered only after CSCs become operationa

__________

14Percentage 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 crore15Including application tracking16Only application can be made online – forms are send through courier service. Online application for statutory and other forms started after April 09

(recently).17Only 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).



487


1.2 Research Design

Finding comparison group will be difficult because 90% of dealers are filing online returns

Finding comparison groups for Large and Medium dealers will be difficult as almost all of

them are filing E-returns

Considering the above mentioned points Proxy Pretest Design will be adopted for this impact assess-

ment study (please refer Annexure A– I).


Selection of Divisions was done on the basis of activity levels i.e. total number of dealers who filed

Online VAT Returns (e-returns) from 1/4/2008 to 1/7/2009. Divisions were arranged in descend-

ing order of the total number of dealers who filed 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)


Quartile Division Dealers filing

e-returns

Percentage Selected Divi-

sion

No. of Respondents

Quartile I

Coimbatore 35285

49.9%Coimbatore 304

Chennai South 15782

Salem 15002

Total 6606

Quartile II

Madurai 13783

27.3%Tirunelveli 208

Tirunelveli 12241

Chennai Central 10060

Total 36084

Quartile III

Trichhy 8574

18.2%Chennai East 192

Chennai North 7886

Chennai East 7644

Total 24104

Quartile IV Vellore 6160 4.7% Vellore 96

G. Total 132417 100% 800

Note:

Sample size in each selected Division is proportionate to the number of users in the quartile in1.

which it falls


size) we had arrived at the following sample size for each quartile: Quartile 1 (Div Coim-

batore) = 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



488


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

Coimbatore

Tiruppur

Coimbatore-I

Pollachi

Uthagamandalam

Tirunelveli

Tirunelveli

Sivakasi

Tuticorn

Nagercoil

Chennai East

Zone-VI

Zone-IX

Zone-V

Vellore

Vellore

Thiruvannamalai

Cuddalore

Villupuram


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 – Officials 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.



489




Selected Division Selected Zone No. of Circles Sample Size/Circle

Coimbatore

Tiruppur

4 Zones X 2 = 8 304/8 = 38

Coimbatore-I

Pollachi

Uthagamandalam

Tirunelveli

Tirunelveli

4 Zones X 2 = 8 208/8 = 26Sivakasi

Tuticorn

Nagercoil

Chennai East

Zone-Vi

3 Zones X 2 = 6 192/6 = 32Zone-Ix

Zone-V

Vellore

Vellore

4 Zones X 2 = 8 96/8 = 12

Thiruvannamalai

Cuddalore

Villupuram

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

CTPs.



490


Annexure A– I

Quasi-Experimental Design: Proxy Pretest Design 0-1 X 0-2





The pretest in this design is collected after the program is given – a “proxy” variable is used toestimate where the groups would have been on the pretest.












Reference





491


Annexure A- II



492


Annexure A- III

Selection of Zones

Selected Division Zone E-Return Dealers* Selected Zone

Coimbatore

Tiruppur 6324 Tiruppur

Coimbatore-III 5943

Coimbatore-I 4062 Coimbatore-I

Coimbatore-II 3850

Pollachi 1410 Pollachi

Uthagamandalam 553 Uthagamandalam

Tirunelveli

Tirunelveli 2622 Tirunelveli

Sivakasi 2493 Sivakasi

Tuticorn 1976 Tuticorn

Nagercoil 1356 Nagercoil

Virudhunagar 1010

Chennai East

Zone-VI 1806 Zone-VI

Zone-IX 1764 Zone-IX

Zone-V 1705 Zone-V

Vellore

Vellore 1900 Vellore

Thiruvannamalai 1349 Thiruvannamalai

Cuddalore 1112 Cuddalore

Villupuram 1000 Villupuram

*1/4/2008 to 1/3/2009

Source: Commercial Taxes Department, Tamil Nadu



493


__________


Annexure - B

Tamil Nadu: Interview Schedule for Dealers


Sl. No. State State Code District District Code Date of Interview (DD/MM) Distance from Circle Office

(Km.)



Urban………….2

Mobile:

TIN Respondent’s Name & Designa-

tion

Division Division

Code

Interviewer Editor Supervisor Zone Zone

code

Name Name Name

Code Code Code Circle Circle

code


DEALER PROFILEB.





Hindu Undivided Family………............…5



Others (Specify)


Wholesale…………………………….……2

Retail………………….……………………3

Export…………………………….………..4



Leasing………………………….…………7

Hotels………………………………………8

Food & Drink……………………………….9

Others (Specify)



494



2008-09 (INR)

4B. Please give details of Commercial Taxes paid in Fi-

nancial Year: 2008-09 (INR)


(INR)

VAT Yes-1 No-2

CST Yes-1 No-2

5B. Please specify the mode in which Books of Accounts

are maintained within the organization

Manual …………………………..……..….1



6B. Number of staff in your organization who are in-

volved in activities related to Commercial Taxes

AWARENESS AND USAGE OF ONLINE SERVICESC.



Newspaper…………………….……………………..1

Television…………………………………………….2

Other Dealers………………………………………...3

CTPs…………..…………………………..……….…4

Commercial Tax Dep. Official……………….…….....5

Others (Specify)


Department?




Application for refund………...……………………...3

Filing Returns………………………………………...4

Payment of Taxes……………………………………..5

Information Dissemination…………………………...6

Others (Specify)


use

Frequency of Use


Monthly………………….…… 2



Others (Specify)





Application for forms Yes-1 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)



495


____________


TIME AND EFFORT AND COSTS OF AVAILING SERVICESD.

Please provide the following details with reference to services that you have availedthrough online and manual modes:



Filing of Returns………………………………………………………….1

Getting information from CTD…………………………………………...2

Payment of Taxes…………………………………………………………3

Application for forms (CST)……………………………………………...4

Others (Specify)






Due to lack of sufficient knowledge on processes………..........................1

To ensure accuracy of data given to Department.………...........................2

Want to avoid interface with Dep. Officials…………….......................….3

Do not want to spent time on this…………………….......................…….4

Others (Specify)


(This section only applicable for the services: Filing of Returns)

5D. How many man-hours were spent in completing various forms and preparing

supporting documents?


ments


7D. Cost of stationery20

, photocopies and/or internet charges w.r.t service availed{INR}


9D. Service charge paid to Tax Consultant (INR)




11D. How many trips did you need to make to Commercial

Tax Office for the service – including trips for error

correction?

12D. Purpose of each trip and time spent waiting

at CTD Office (Including time spent in queue

& transaction time at counter) for availing

service - (min)

To submit documents…………………..…1

To collect certificate………………………2

To correct error in certificate/document is-

sued 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 - Chal-

lan (applicable only for payment)........7

To fulfill requirement of physical presence..8

Others (Specify)


I

II

III

IV

V



496


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 available………………………………....…4

Counter was not operational…………………………………………………5

Documents/application submitted by me were incomplete…………………6

Others (Specify)


trips?

Yes – 1

No – 2 16D

15D. Please specify the reasons for excessive waitLong queue……………………………………………….………………1

Officials of CTD are inefficient (slow in processing)…………………….2

Processes are too complex & takes lot of time to complete…………...….3

Too many applicants at office……………………………………………..4

Badly managed queue………………………………………………….…5

Some windows/counters were not operational………………..........…..…6

Power breakdown…………………………………………................……7

Computer/network connectivity failure…………………...........…………8

Others (Specify)

16D. Please specify the travel cost incurred in making a round trip to CTD Office

(INR)

17D. Please specify the travel cost incurred in making a round trip to Bank/Trea-sury (INR)



per trip) INR


(Min.)

20D. Please specify the travel time spent in making a round trip to Bank/Treasury

(Min.)


21D. Total travel time spent in availing service (number of trips X travel time per

trip) Min.


23D. 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 first……....…3

Others (Specify)

24D. What was the total time taken to complete transaction Online - it does not

include time taken for data entry? (Min)

25D. Do you think that the time taken to complete online transaction was exces-

sive?

Yes – 1; No – 2 27 D



497


____________

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/functionaries22 Much increased-1; Somewhat increased-2; No change-3; Somewhat decreased-4; Much decreased-523 Much increased-1; Somewhat increased-2; No change-3; Somewhat decreased-4; Much decreased-524 Much increased-1; Somewhat increased-2; No change-3; Somewhat decreased-4; Much decreased-525 GOVERNANCE IS UNDERSTOOD AS TRANSPARENCY, ACCOUNTABILITY AND CORRUPTION-FREE WORKING26 QUALITY OF SERVICE IS UNDERSTOOD AS FAIRNESS, SPEED OF PROCESSING, ACCURACY OF TRANSACTIONS, LEGIBILITY

AND DURABILITY OF CERTIFICATES AND PRINTOUTS, CONVENIENCE OF OBTAINING SERVICE27 Understanding and awareness of the basis on which decisions affecting you/other users are taken by officials

28 Including service provided by Call centre/Helpline


Server is slow……………………………………………………….………1Processes are complex and t ime consuming………………………..........…2

Errors occur while uploading template……………………………….......…3

Others (Specify)

27D. Please calculate the amount spent as salary/wages on total time spent in avail-

ing 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


29D. Service charge paid to Tax Consultant for facilitating service from CTD Of-

fice (INR)

(NOT APPLICABLE IF DONE IN-HOUSE: PLEASE SEE 3D)30D. What was the total payment21 made by you for availing the service? (INR)


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 filling forms,

preparation of supporting documents and data entry )? (Hours)


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 influence functionaries to manipulate records in your favor………….2

To expedite the process…………………….. …………………….…….3

Others (Specify)

OVERALL ASSESSMENTE.


ing attributes:Mode of Service (Online – O, Manual – M) O M Mode of Service (Online – O, Manual – M) O M

1E. Cost of availing service22 2E. Time and effort in availing service23

3E. Overall experience of availing service from CTD 4E. Confidentiality and security of data





13E. Predictability of outcome 14E. Complaint handling mechanism28 & problem resolu-

tion

15E. Ability to influence policies, rules and proceduresthrough feedback

16E. Convenience of location of center/office (accessibil-ity and ambience)




498



21E. Adherence to Citizen Charter 29

22E. Dependence on CTPs30




SUGGESTIONSF. 31



Eliminate practice of submission of hard copy to CTD……………………………………………………………...……..1

Server speed should be increased……………………………………………………………………………………………2

Maintenance of website should not be done during Office Hours of Traders/Tax Consultants……………………………..3

CTD officials should be given adequate training, so that they can handle queries on online services efficiently…………..4

Provide templates(w.r.t. returns) that can perform data verification offline……...................…………………….…...……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 rectified…………………...………………7

Others (Specify)



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 Adherence of the time frame for service delivery (elapsed time) to that specified in citizen’s charter 30 Much increased-1; Somewhat increased-2; No change-3; Somewhat decreased-4; Much decreased-531 This part is for all users - manual and online



499


____________

52


Annexure - C

TAMIL NADU: INTERVIEW SCHEDULE FOR CTP

IDENTIFICATION DETAILSG.


Code

Date of Interview (DD/MM) Distance from Circle Of-

fice (Km.)


Town/Village Code Rural…………..1

Urban………….2

Phone Respondent’s Name & Designa-tion


Land Line: Mobile:

Interviewer Editor Supervisor Zone Zone code

Name Name Name

Code Code Code Circle Circle

code


Profile of Tax ConsultantH.


LLB - 2

Others (Specify)


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


TAX



Manual Online

5B. Number of staff in your organization who are involved in activities



No - 2 Part C

7B. Has the Tax Consultant used any online E-Gov. service Yes – 1

No - 2



500


AWARENESS AND USAGE OF ONLINE SERVICESI.



Newspaper…………………….……………………..1

Television…………………………………………….2

Dealers……………..………………………………...3

Other CTPs…..…………………………..………..…4

Commercial Tax Dep. Official……………….…..….5

Others (Specify)


Department?


Application for Registration……………………….....1

Application for issue of forms…………………….…2


Filing Returns………………………………………...4

Payment of Taxes………………………………….…5


Others (Specify)3C. Please give details regarding online services used and frequency

of use

Frequency of Use

Daily……………………….…….1

Weekly……………………..……2


Monthly…………………….…… 4


Annually…………………………..6

Others (Specify)





Application for forms Yes-1 No-2









It is mandatory………………………………….….6

Others (Specify)

TIME AND EFFORT AND COSTS OF AVAILING SERVICESJ.

Please provide the following details with reference to services that you have availed

through online and manual modes:



Filing of Returns……………………………………………...…….1

Getting information from CTD………………………….....……….2

Payment of Taxes………………………………………...............…3

Application for forms (CST)……………………………………….4

Others (Specify)




501



(This section only applicable for the services: Filing of Returns)36D. How many man-hours were spent in completing various forms and prepar-

ing supporting documents?


ments


38D. Cost of stationery32, photocopies and/or internet charges w.r.t service

availed {INR }39D. Cost of Statutory Forms and other Forms – including courier charges

(INR)



41D. How many trips did you need to make to Commer-

cial Tax Office for the service – including trips for

error correction?

42D. Purpose of each trip and time spent waiting

at CTD Office (Including time spent in queue

& transaction time at counter) for availing

service - (min)

To submit documents…………….....…..…1

To collect certificate…………..........………2

To correct error in certificate/document issued

by CT…..................................................….3

To correct errors in documents submitted by

Dealer/Tax Consultant…...............................4

To track application………………………5To seek information………………………6

To bank/treasury for making payment - Chal-

lan (applicable only for payment)........7

To fulfill requirement of physical presence…8

Others (Specify)


I

II

III

IV

V

__________


43D. Please see 8 D – if the number of trips is more than one, then ask: Why


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….....…….…6Others (Specify)

44D. Do you think you had to wait excessively for availing service in any of

the trips?

Yes – 1

No – 2 13D



502



Long queue……………………………….………………...............1Officials of CTD are inefficient (slow in processing)……………....2

Processes are too complex & takes lot of time to complete….….....3

Too many applicants at office…………………………………....…4

Badly managed queue……………………………………………....5

Some windows/counters were not operational…………………..…6

Power breakdown……………………………………………….….7

Computer/network connectivity failure…………………………….8

Others (Specify)


Office (INR)


Treasury (INR)



per trip) INR


(Min.)

50D. Please specify the travel time spent in making a round trip to Bank/Trea-

sury (Min.)



per trip) Min.



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 first…...3

Others (Specify)

54D. What was the total time taken to complete transaction Online - it does not

include time taken for data entry? (Min)


excessive?

Yes – 1; No – 2 24 D

56D. Why do you think are the reasons for excessive time in online transac-

tions?

Server is slow……………………………………………….………1

Processes are complex and time consuming………………………..2

Errors occur while uploading template…………...………………...3

Others (Specify)

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 NOTINCLUDE TIME TAKEN FOR FILLING FORMS, PREPARATION

OF SUPPORTING DOCUMENTS AND DATA ENTRY


59D. What was the total payment33 made by you for availing the service?

(INR )60D. 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

filling forms, preparation of supporting documents and data entry )?

(Hours)


Yes-1; No-2 Part E



503


62D. For what purpose did you pay the bribe indicated in the previous ques-

tion? (Multiple rsp.)

To avoid audit assessment by CT Department……………….….......1

To influence functionaries to manipulate records in your favor….….2

To expedite the proces……………............…………………….……3

Others (Specify)

OVERALL ASSESSMENTK.

On a 5 point scale (Dissatisfied-1; Somewhat dissatisfied-2; Neutral-3; Somewhat satisfied-4; Very satisfied-5) please rate the

following attributes:

Mode of Service (Online – O, Manual – M) O M Mode of Service (Online – O, Manual – M) O M

1E. Cost of availing service34

2E. Time and effort in availing service35

3E.Overall experience of availing service from

CTD4E. Confidentiality and security of data



9E.Clarity and simplicity of processes and proce-

dures10E. Accountability of Officials


13E. Predictability of outcome 14E.Complaint handling mechanism40& problem

resolution

15E.Ability to influence policies, rules and procedures

through feedback 16E. Level of corruption


19E. Queuing system at CTD Office 20E.Convenience of location of center/office (acces-



23E. Dependence on CTD Officials

24E.Among the above given factors please list the three factors that you consider the most important


__________

33 Includes a) amount paid to department for which receipt was given, and b) amount paid as bribe to department staff/functionaries34 Much increased-1; Somewhat increased-2; No change-3; Somewhat decreased-4; Much decreased-535 Much increased-1; Somewhat increased-2; No change-3; Somewhat decreased-4; Much decreased-536 Much increased-1; Somewhat increased-2; No change-3; Somewhat decreased-4; Much decreased-537 Governance is understood as transparency, accountability and corruption-free working38 Quality of service is understood as fairness, speed of processing, accuracy of transactions, legibility and durability of certificates and printouts,

convenience of obtaining service39 Understanding and awareness of the basis on which decisions affecting you/other users are taken by officials40 Including service provided by Call centre/Helpline41

Adherence of the time frame for service delivery (elapsed time) to that specified in citizen’s charter



504


__________


SUGGESTIONSL. 42


Eliminate practice of submission of hard copy to CTD…………………………………………………………...……..1

Server speed should be increased…………………………………………………...............……………………………2


Consultant’s Internet Banking A/C.............................................................................................................................……3

Maintenance of website should not be done during Office Hours of Traders/Tax Consultants…………...……………..4

CTD officials should be given adequate training, so that they can handle queries on online services efficiently…..…..5

Involve more Banks in E-payment…………………………………………………………………………………...…..6

Provide templates(w.r.t. returns) that can perform data verification offline……………………....…………….…...……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 rectified…………….....…………………9

Others (Specify)



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.



505


Annexure – D

Tamil Nadu: Dealers Using Mandatory Online Services



Division Circle

Chennai East

Annasalai III 24

Chepauk 24

Mylapore 26

Royalpetah I 26

Mannady East 24

Tondiarpet 23

Total 147

Vellore

Vellore North 9

Arakonam 9

Thiruvannamalai I 9

Vandavasi 9

Cuddalore 9

Virudhachalam 9

Villupuram I 9

Kallakuruchi 9

Total 72

Ciombatore

Laxmi Nagar 27

Palladam 28

Trichy Road 27

Singanallore 28

Pollachi Rural 30

Udumalpet North 28

Uthagmandalam North 28

Kothagiri 28Total 224

Tirunelveli

Ambasamudram 20

Sengottai 20

Srivilliputtur 20

Rajyapalam 20

Ettaipuram 20

Kovilpatti 20

Thakallai 19

Kulithurai 20

Total 160



506




Rural 38 6.3

Urban 565 93.7

Total 603 100.0




Proprietor 439 72.8Partnership 106 17.6

Private Limited Company 47 7.8

Public Limited Company 8 1.3

Co-Op society 3 .5

Total 603 100.0



Manufacture 79 13.1

Wholesale 151 25.0

Retail 342 56.7

Export 3 .5

Work contract 20 3.3

Leasing 1 .2

Hotels 7 1.2

Total 603 100.0


Registered for VAT? Frequency Percent

Yes 603 100.0


Registered for CST? Frequency Percent

Yes 117 19.4

No 486 80.6

Total 603 100.0



507



Mode in which books of Accounts are maintained Frequency Percent

Manual 38 6.3


Total 603 100.0


Number of staff in the organization involved in ac-

tivities related to Commercial Taxes

Frequency Percent

1 469 77.8

2 119 19.7

3 10 1.75 3 .5

>5 2 .4

Total 603 100.0




Newspaper 113 18.7

Television 41 6.8

Other Dealers 37 6.1

CTPs 140 23.2

CTD officials 272 45.1

Total 603 100.0


Online services of CTD Responses Percent of Cases

N Percent


Application for issue of forms 129 7.5% 21.4%





Total 1726 100.0%



508



Reasons for using online services Responses Percent of Cases

N Percent







Total 1550 100.0%

SECTION D: Time and Effort and Costs of Availing Service


Services Availed in Last 90 Days Frequency Percent

Filing of returns 603 100.0

Table 13: Time and cost of Filing of Filing Returns

Filing Returns Computerized Manual Change (C-M) Sig.


for Filing of Returns

Man-hours spent in completing various forms and

preparing supporting documents2.418 3.8571

-1.43905 **

N 603 603

S.E. 0.05045 0.07673

Mode 2 3

Comment: Total man-hours spent for preparation of documents (manually) is significantly lesser in online mode.

Salary/wages for preparation of documents (INR) 83.59 129.38 -45.788 **

N 603 603

S.E. 22.098 33.141

Mode 50 125

Comment: Salary/wages for preparation of documents has reduced significantly – this is because of the reduction in

man-hours spent for preparing documents.

Cost of stationery photocopies and/or internet

charges for preparation of documents (INR)93.63 106.48 -12.856 **

N 603 603

S.E. 4.472 5.686

Mode 50 50

Cost of Statutory Forms and other Forms – in-

cluding courier charges (INR)24.63 27.4 -2.774 **

N603 603



509



S.E. 1.996 2.045

Mode 0 0

Service charge paid to Tax Consultant for prepa-

ration of documents(INR)408.33 411.77 -3.438 NS

N 413 413

S.E. 15.247 13.339

Mode 500 500

Total cost of preparation of documents (INR) 480.13 547.18 -67.048 **

N 603 603

S.E. 25.707 36.009

Mode 135 173

Comment: Total cost of preparation of documents has reduced significantly as a result of shifting to online mode.

Time and Cost of Availing Services From Com-

mercial Taxes Department

Number of trips 1 1 -.002 NS

N 603 603

S.E. 0.002 0.002

Mode 1 1

Comment: There is no difference between the

two modes as far as number of trips is concerned.


N 603 603

S.E. 0.806 1.641

Mode 30 120

Comment: Waiting time has reduced significantly - this is because hard copies of returns submitted by online users

are not scrutinized at the counter.

Travel cost (INR) 30.04 30.36 -.318 **

N 603 603

S.E. 0.663 0.674

Mode 20 20


N 603 603

S.E. 1.005 1.018

Mode 30 30


service1.05 NA

N 603

S.E. .009

Mode 1

Total time taken to enter data and complete trans-

action online (Minutes)

32.83 NA



510



N 603

S.E. .839

Mode 30


in availing service (INR)49.71 48.11 1.604 *

N 603 603

S.E. 1.662 1.584

Mode 50 31

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 603 603

S.E. 0 0

Mode 0 0

Service charge paid to Tax Consultant for facili-

tating service from CTD Office (INR)17.19 17.45 -.267 NS

N 603 603

S.E. 5.988 6.026

Mode 0 0


N 603 603S.E. 0 0

Mode 0 0

Total payment made (INR) 17.19 17.45 -.267 NS

N 603 603

S.E. 5.988 6.026

Mode 0 0

Total elapsed time in availing service (Hours) 1.8584 2.8891

-1.03068 **

N 603 603

S.E. 0.04055 0.05906

Mode 2.00 3.00

Comment: Total elapsed time has reduced significantly. This is mainly because of reduction in waiting time at CTD

office.



511


OTHER TABLES: Time and Cost of Filing Returns (Online)





Total 603 100.0

Table 15: Reasons for depending on CTPs

Reasons for depending on CTPs Responses Percent of Cases

N PercentDue to lack of sufficient knowledge on processes 357 64.1% 84.6%




Total 557 100.0%



1 602 99.8

2 1 .2

Total 603 100.0

Table 17: Reasons for multiple trips

Reasons to make more that one trip Frequency Percent

Documents/application submitted by me were incomplete 1 100.0

Total 1 100.0



Yes 2 .3

No 601 99.7

Total 603 100.0



512




N Percent

Long queue 1 25.0% 50.0%


Too many Applicants at office 1 25.0% 50.0%


Total 4 100.0%



1 572 94.92 30 5.0

3 1 .2

Total 603 100.0





Total 31 100.0



Yes 13 2.2

No 590 97.8

Total 603 100.0


Reasons for excessive time in online transactions Frequency Valid Percent



Total 13 100.0



Yes 2 .3

No 601 99.7

Total 603 100.0



513


Table 25: Reasons for bribe

Reasons for paying bribes Responses Percent of Cases

N Percent

To avoid audit assessment by CT Department 2 66.7% 100.0%

To influence functionaries to manipulate records in our fa-

vor

1 33.3% 50.0%

Total 3 100.0% 150.0%

OTHER TABLES: Time and Cost of Filing Returns (Manual)



No, it was cone completely in house 190 31.5


Total 603 100.0



N Percent


To ensure accuracy of data given to Department 137 25.1% 33.2%Want to avoid interface with Dep. officials 25 4.6% 6.1%


Total 546 100.0%


Number of trips need to CTD Frequency Percent

1 601 99.7

2 2 .3

Total 603 100.0


Reasons to make more that one trip Frequency Valid Percent

It was required - as per CTD procedure 1 50.0

Documents/application submitted by me were incomplete 1 50.0

Total 2 100.0

Table 30: Wating time for availing service


Yes 7 1.2

No 596 98.8

Total 603 100.0



514




N Percent

Long queue 1 10.0% 14.3%

Officials of CTD are inefficient (slow in pro-

cessing)

1 10.0% 14.3%

Too many Applicants at office 5 50.0% 71.4%



Total 10 100.0%



Yes 1 .2

No 602 99.8

Total 603 100.0


Reasons to pay the bribe Frequency Valid Percent

To avoid audit assessment by CT Department 1 100.0

Table 34: Time and cost of Filing of Tax Payment (N=63)

Tax Payment Computerized Manual Change

(C-M)

Sig.


Number of trips .00 1.00 -1 **

N 63 63

S.E. .000 .000

Mode 1

Comment: Online users did not have to make trips to banks/treasuries as payment was made online.


N 63

S.E. 1.597

Mode 30


N 63

S.E. 2.076

Mode 20


N 63

S.E. 3.770

Mode 30



515


Tax Payment Computerized Manual Change

(C-M)

Sig.


service

1.00 NA

N 63

S.E. .000

Mode 1


utes)

28.89 NA

N 63

S.E. 1.653

Mode 30Amount spent as salary/wages on total time spent in

availing service (INR)

12.76 32.54 -19.778 **

N 63 63

S.E. 1.513 2.754

Mode 8 22

Comment: Amount spent as salary/wages has reduced significantly because online mode has eliminated trips to banks/

treasuries.


N 63 63

S.E. .000 .000

Mode 0 0


service from CTD Office (INR)

.00 .00

N 63 63

S.E. .000 .000

Mode 0 0


N 63 63

S.E. .000 .000

Mode 0 0


N 63 63

S.E. .000 .000

Mode 0 0

Total elapsed time in availing service (Hours) .4735 1.3237 -.85016 **

N 63 63

S.E. .02814 .09052

Mode .33 1.00

Comment: Total elapsed time has reduced significantly because in the online mode user need not visit bank/treasury

to make payments.



516


OTHER TABLES: Time and Cost of Tax Payment (Online)






0 63 100.0


Time taken to complete online transaction was excessive? Frequency Percent

Yes 3 4.8

No 60 95.2

Total 63 100.0


Reasons for excessive time in online transactions Frequency Percent


Total 3 100.0



No 63 100.0

OTHER TABLES: Time and Cost of Tax Payment (Manual)






1 63 100.0



517


Table 42: Waiting time

Had to wait excessively for a availing service Frequency Percent

Yes 1 1.6

No 62 98.4

Total 63 100.0

Table 43: Waiting time

Reasons for excessive wait Frequency Percent

Long queue 1 1.6

Total 3 100.0



No 63 100.0

Table 45: Time and cost of Getting Information from CTD (N=500)

Getting Information Computerized Manual Change

(C-M)

Significance



N 500 500

S.E. .000 .000

Mode .000 1

Comment: In the online mode, users did not visit CTD office for seeking information – it was obtained either from

website or through e-mails.


N 500

S.E. .887

Mode 60


N 500

S.E. .755

Mode 20


N 500

S.E. 1.168

Mode 30


service

1.00 NA

N 500

S.E. .003

Mode 1



518


Getting Information Computerized Manual Change

(C-M)

Significance


(Minutes)28.11 NA

N 500

S.E. .698

Mode 30



N 500 500

S.E. .586 1.250

Mode 3 19

Comment: Amount spent as salary/wages has decreased significantly as the need to visit CTD office has been elimi-

nated.


N 500 500

S.E. .000 .000

Mode 0 0


service from CTD Office (INR).16 .16

N 500 500

S.E. .160 .160

Mode 0 0


N 500 500

S.E. .000 .000

Mode 0 0

Total payment made (INR) .16 .16 0 NS

N 500 500

S.E. .160 .160

Mode 0 0

Total elapsed time in availing service (Hours) .4795 1.3894 -.90982 **

N 500 500

S.E. .01449 .02792

Mode .50 1.00

Comment: Total elapsed time in availing service has reduced significantly as users can obtain information from their

offices - without visiting CTD office.



519


OTHER TABLES: Time and Cost of Getting Information from CTD (Online)




Yes, it was partially done by CTP 2 .4

Total 500 100.0



N Percent

Due to lack of sufficient knowledge on processes 2 50.0% 100.0%Do not want to spent time on this 2 50.0% 100.0%

Total 4 100.0%



0 500 100.0



1 498 99.6

2 2 .4Total 500 100.0




Total 2 100.0



Yes 2 .4

No 498 99.6

Total 500 100.0





Total 2 100.0



520



Paid a bribe directly to Officials? Frequency Percent

No 500 100.0

OTHER TABLES: Time and Cost of Getting Information from CTD (Manual)





Total 500 100.0

Table 55: Reasons for dependence on CTP


N Percent




Total 13 100.0%



1 500 100.0



No 500 100.0

Total


Paid bribe directly to Officials Frequency Percent

No 500 100.0



521






N 600 600

S.E. 0.043 0.045


N 602 602

S.E. 0.04 0.042


N 602 602

S.E. 0.036 0.04


N 602 602

S.E. 0.038 0.043

Effort in preparation of documents 3.6 3.13 .467 **

N 602 602

S.E. 0.039 0.042


N 603 603

S.E. 0.04 0.044


N 602 602

S.E. 0.038 0.038


N 601 601

S.E. 0.039 0.042


N 602 602

S.E. 0.04 0.042


N 602 602

S.E. 0.037 0.044


N 603 603

S.E. 0.04 0.042


N 601 601

S.E. 0.038 0.041




522



N 600 600

S.E 0.04 0.04


N 602 602

S.E 0.037 0.038


N 601 601

S.E. 0.038 0.039

Convenience of location of center/office 3.59 3.34 .255 **

N 601 601

S.E. 0.037 0.041Courtesy and helpfulness of Officials 3.56 3.29 .272 **

N 602 602

S.E. 0.04 0.041


N 569 569

S.E. 0.041 0.042


N 546 546

S.E. 0.038 0.041


N 600 600

S.E. 0.042 0.043


N 580 580

S.E. 0.043 0.049

Dependence on CTPs 3.82 3.54 .280 **

N 599 599

S.E. 0.041 0.044


N 602 602

S.E. 0.039 0.047



523


Composite Score


Respondents who


be Among Three Most

Important


Scores

Improvement

Column No. a b c d e f


(Column a/

Total of

Column a)


(Column c

–

Column d)

Weighted

Score

(Column e

X

Column b)

Cost of availing service 28 1.5% 3.84 3.28 .565 0.008475

Time and effort in availing service 28 1.5% 3.63 3.36 .269 0.004035


vice from CTD42 2.3% 3.72 3.24 .483 0.011109

Confidentiality and security of data 30 1.7% 3.75 3.24 .515 0.008755

Effort in preparation of documents 49 2.7% 3.6 3.13 .467 0.012609




Clarity and simplicity of processesand procedures

79 4.4% 3.72 3.24 .472 0.020768



Knowledge of Officials 120 6.6% 3.53 3.33 .208 0.013728



problem resolution107 5.9% 3.46 3.23 .228 0.013452


and procedures134 7.4% 3.5 3.16 .336 0.024864

Convenience of location of center/

office

72 4.0% 3.59 3.34 .255 0.0102

Courtesy and helpfulness of Offi-

cials129 7.1% 3.56 3.29 .272 0.019312





Dependence on CTPs 49 2.7% 3.82 3.54 .280 0.00756


cates/receipts20 1.1% 3.83 3.34 .490 0.00539




524




Suggestions for improving online services



N Percent





can handle queries on online services efficiently156 8.9% 25.9%

Provide templates (w.r.t. returns) that can perform data verifica-

tion offline 213 12.2% 35.3%


nicated to users304 17.4% 50.4%

Mistakes in database maintained by CTD w.r.t. addresses of

dealers should be rectified180 10.3% 29.9%

Total 1748 100.0%

Table 62: Suggestions for increase usage of online services

Suggestions to increase usage of e-services



N PercentAwareness campaigns on online services for dealers 534 41.8% 88.6%

Establishment of common service centres to facilitate e-services

for all351 27.5% 58.2%


simple391 30.6% 64.8%

Total 1276 100.0%



525


Annexure – E

Tamil Nadu: CTPs Using Mandatory Online Services



Division Circle

Chennai East

Annasalai III 8

Chepauk 8

Mylapore 8

Royalpetah I 8Mannady East 8

Tondiarpet 8

Total 48

Vellore

Vellore North 4

Arakonam 2

Thiruvannamalai I 3

Vandavasi 3

Cuddalore 3

Virudhachalam 3

Villupuram I 3

Kallakuruchi 3Total 24

Ciombatore

Laxmi Nagar 8

Palladam 12

Trichy Road 11

Singanallore 9

Pollachi Rural 10

Udumalpet North 8

Uthagmandalam North 10

Kothagiri 10

Total 78

Tirunelveli

Ambasamudram 6Sengottai 6

Srivilliputtur 6

Rajyapalam 6

Ettaipuram 6

Kovilpatti 6

Thakallai 6

Kulithurai 6

Total 48



526




Rural 3 1.5

Urban 195 98.5

Total 198 100.0




CA 91 46.0

LLB 14 7.1

B Com 93 47.0

Total 198 100.0


Years of Experience as Tax Consultant Frequency Percent

1-5 Years 21 10.6

6-10 Years 62 31.3

11-15 Years 66 33.316-20 Years 33 16.7

>20 Years 16 8.1

Total 198 100.0


Number of staff in the organization involved in activities related to

Commercial Taxes

Frequency Percent

1 92 46.5

2 47 23.7

3 28 14.14 17 8.6

5 10 5.1

>5 4 2.0

Total 198 100.0



Yes 198 100.0



527




Yes 198 100.0



Frst source of awareness about online services Frequency Percent

Newspaper 33 16.7

Television 1 .5

Dealers 1 .5

Other CTPs 29 14.6


Total 198 100.0


Online services of CTD Responses Percent of Cases

N Percent


Application for issue of forms 88 10.7% 44.4%





Total 820 100.0%


Reasons for using e services Responses Percent of Cases

N Percent

Online process is faster 182 28.4% 91.9%Online process is more secure 70 10.9% 35.4%





Total 640 100.0%



528


SECTION D: Time and Effort and Costs of Availing Service

Table 11: Time and cost of Filing of Returns (N=198)



Man-hours spent in completing various forms and prepar-

ing supporting documents2.1384 3.101 -.96263 **

N 198 198

S.E. 0.136 0.15294

Mode 2.00 2.00

Comment: Total man-hours spent for preparation of documents (manually) is significantly lesser in online mode.

Salary/wages for preparation of documents (INR) 62.03 91.59 -29.556 **

N 198 198

S.E. 3.639 6.431

Mode 42 83

Comment: Salary/wages for preparation of documents has reduced significantly.

Cost of stationery photocopies and/or internet charges for

preparation of documents (INR)111.53 128.83 -17.308 **

N 198 198

S.E. 7.865 9.29

Mode 50 50

Cost of Statutory Forms and other Forms – including cou-rier charges (INR)

71.71 81.72 -10.005 **

N 198 198

S.E. 8.056 7.747

Mode 10 300

Total cost of preparation of documents (INR) 245.29 301.61 -56.318 **

N 198 198

S.E. 10.563 13.461

Mode 72 400

Comment: Total cost of preparation of documents has reduced significantly as a result of shifting to online mode.


Number of trips 1.01 1.04 -.030 **

N 198 198

S.E. 0.007 0.014

Mode 1 1

Comment: Users had to make at least one trip in both the modes.


N 198 198

S.E. 1.013 1.932

Mode 30 30

Comment: Waiting time seems to have reduced significantly - this is because hard copies of returns submitted by on-

line users are not scrutinized at the counter.



529



Travel cost (INR) 27.25 28.28 -1.035 *

N 198 198

S.E. 0.887 1.145

Mode 20 20


N 198 198

S.E. 1.16 1.358

Mode 30 30

Number of times user had to log-in to avail online service 1.18 NA

N 198

S.E. .027

Mode 1

Total time taken to enter data and complete transaction on-

line (Minutes)27.74 NA

N 198

S.E. .972

Mode 30

Amount spent as salary/wages on total time spent in avail-

ing service (INR)48.33 45.18 3.152 **

N 198 198

S.E. 2.641 2.589Mode 31 42

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.


N 198 198

S.E. 0 0

Mode 0 0


N 198 198

S.E. 0 0

Mode 0 0


N 198 198

S.E. 0 0

Mode 0 0

Total elapsed time in availing service (Hours) 1.9217 2.4651 -.54338 **

N 198 198

S.E. 0.05293 0.06858

Mode 2.00 2.00

Comment: Total elapsed time has reduced significantly. This is mainly because of reduction in waiting time at CTD

office.



530


OTHER TABLES: Filing of Returns (Online)


Number of trips need to CTD Frequency Percent

1 196 99.0

2 2 1.0

Total 198 100.0


Reasons to make more that one trip Frequency Percent

To follow up, as there was delay on the part of CTD to provide service 2 100.0



Yes 1 .5

No 197 99.5

Total 198 100.0


Reasons for excessive wait Frequency Percent

Too many applicants at office 1 100.0



1 162 81.8

2 36 18.2

Total 198 100.0





Total 36 100.0



Yes 17 8.6

No 181 91.4

Total 198 100.0



531







Total 17 100.0



No 198 100.0

Other Tables: Filing of Returns (Manual)



1 190 96.0

2 8 4.0

Total 198 100.0



N Percent

It was required - as per CTD procedure 4 44.4% 50.0%


service5 55.6% 62.5%

Total 9 100.0%



Yes 7 3.5

No 191 96.5

Total 198 100.0



Long queue 1 14.3


Total 7 100.0



532




No 198 100.0

Table 26: Time and cost of Getting Information from CTD (N=151)

Getting Information Computerized Manual Change (C-M) Significance



N 151 151

S.E. .000 .000

Mode1

Comment: In the online mode, users did not visit CTD office for seeking information – it was obtained either from

website or through e-mails.


N 151

S.E. 1.420

Mode 30


N 151

S.E. 1.031

Mode 20


N 151

S.E. 1.142

Mode 30


service1.00 NA

N 151

S.E. .000

Mode 1


(Minutes) 24.75 NA

N 151

S.E. 1.325

Mode 20



N 151 151

S.E. 1.157 2.609

Mode 3 21

Comment: Amount spent as salary/wages has decreased significantly as the need to visit CTD office has been elimi-

nated.



533


Getting Information Computerized Manual Change (C-M) Significance

Service Charge paid to department (INR) 00 .00

N 151 151

S.E. .000 .000

Mode 0 0

Amount paid as bribe (INR) 00 .00

N 151 151

S.E. .000 .000

Mode 0 0


N 151 151

S.E. .000 .000

Mode 0 0

Total elapsed time in availing service (Hours) .4352 1.5783 -1.14311 **

N 151 151

S.E. .02845 .10616

Mode .50 1.00

Comment: Total elapsed time in availing service has reduced significantly as users can obtain information from their

offices - without visiting CTD office.

Other Tables: Getting Information from CTD (Online)



0 151 100.0


Number of times log-in to avail online service Frequency Percent1 151 100.0



No 151 100.0



534




No 151 100.0

Other Tables: Getting Information from CTD (Manual)


Number of trips need to make to Commercial Tax Frequency Percent

1 151 100.0



Yes 1 .7

No 150 99.3

Total 151 100.0





Paid a bribe directly to Officials Frequency Valid Percent

No 151 100.0



Overall Assement Computerized Manual Change

(C-M)

Sig.


N 198 198

S.E. 0.056 0.058


N 198 198

S.E. 0.055 0.06


N 198 198

S.E. 0.051 0.05



535



(C-M)

Sig.


N 198 198

S.E. 0.056 0.06

Efforts in preparation of documents 3.62 3.22 .399 **

N 198 198

S.E. 0.055 0.061

Overall Quality of governance 3.59 3.19 .399 **

N 198 198

S.E. 0.057 0.051


N 198 198

S.E. 0.056 0.057


N 198 198

S.E. 0.055 0.06


N 198 198

S.E. 0.061 0.062

Accountability of officials 3.69 3.26 .429 **

N 198 198

S.E. 0.061 0.062


N 198 198

S.E 0.056 0.064

Knowledge of officials 3.61 3.28 .328 **

N 198 198

S.E 0.061 0.055


N 198 198

S.E. 0.057 0.049


N 198 198

S.E. 0.065 0.056


N 198 198

S.E. 0.066 0.058


N 198 198

S.E. 0.057 0.058

Courtesy and helpfulness of officials 3.67 3.17 .495 **

N 198 198

S.E. 0.055 0.06


N 198 198



536



(C-M)

Sig.

S.E. 0.056 0.06


N 198 198

S.E. 0.1 0.048

Convenience of location of centre/office 3.84 3.46 .374 **

N 198 198

S.E. 0.053 0.052

Adherence to citizen charter 3.58 3.13 .444 **

N 198 198

S.E. 0.064 0.06


N 198 198

S.E. 0.056 0.069

Dependence on CTD Officials 3.68 3.39 .289 **

N 197 197

S.E. 0.063 0.055

Composite Score


Respondents whoConsidered Factor to

be Among Three Most

Important

Average of IndividualScores

Improvement



(Column a/

Total of

Column a)


(Column c

–

Column d)

Weighted

Score

(Column e

X

Column b)

Cost of availing service 15 2.5% 3.81 3.31 .500 0.0125

Time and effort in availing ser-

vice

33 5.6% 3.77 3.22 .551 0.030856


service from CTD18 3.0% 3.73 3.11 .616 0.01848


data14 2.4% 3.89 3.28 .616 0.014784

Efforts in preparation of docu-

ments16 2.7% 3.62 3.22 .399 0.010773

Overall Quality of governance 22 3.7% 3.59 3.19 .399 0.014763



Clarity and simplicity of pro-

cesses and procedures26 4.4% 3.72 3.15 .571 0.025124




Respondents who


Important


Scores

Improvement



(Column a/

Total of

Column a)


(Column c

–

Column d)

Weighted

Score

(Column e

X

Column b)

Accountability of officials 19 3.2% 3.69 3.26 .429 0.013728

Transparency in CTD 46 7 7% 3 89 3 01 879 0 067683