The Empowered Committee, in consultation with the Government of India, had decided to have a technology based computerized system, viz Tax Information Exchange System (TINXSYS). The key objective of the project was to obtain information related to inter-State trade and prevent fraudulent transactions through spurious statutory forms and thereby tax evasion. With this objective in sight, a project proposal was prepared with an estimated outlay of Rs.32 crores. The 50% of this expenditure was to be borne by the Government of India and the remaining 50% by the States. M/s Ernst & Young Pvt. Ltd. was appointed as the Consultant for the project with effect from 19th October, 2004 and M/s 3i-Inifotech Pvt. Ltd. was engaged as Service Provider with effect from 30th September, 2004.
The project commenced on 1st November, 2004 on a Build-Own-Operate-Transfer basis. Till 31st March, 2010, the following facilities were commissioned as part of the project:
(a) TINXSYS Data Centre and Disaster Recovery Site were set up in Thane, Maharashtra and Chennai, Tamil Nadu respectively.
(b) Nationwide Interactive Voice Response facility is accessible through toll-free number.
(c) Dedicated network providing connectivity between Empowered Committee office and Headquarters of Commissioner, Trade Tax Departments of 30 States/Union Territories along with VoIP facility for conferencing has been made available on real time basis.
(d) TINXSYS website with facility for verification of dealer information has been made available.
(e) Dealer data migration has been completed for most of the States.
(f) In most of the States/Union Territories, IT and non-IT equipments have been installed.
(g) The Service Provider has developed B-Spoke Software Application. The portal and application is hosted on the World Wide Web through an authorized domain name, which was provided by the Empowered Committee.
(h) The Service Provider has implemented the one time activity of data conversion.
(i) The Service Provider is providing a centralized data warehousing solution TINXSYS at Data Centre Thane.
(j) As the Tax Information Exchange System carries a sensitive Government data, the Service Provider has developed its application considering various security measures in order to provide adequate security at all levels.
(k) The Service Provider has carried out training to the respective State CTD employees as well as the Empowered Committee staff.
(l) The Service Provider is ensuring uninterrupted support to various types of activities through dedicated call centre.
(m) The service provider has provided interconnectivity between TINXSYS and State VAT system in all the computerised Commercial Tax Departments which would also automate the process of extraction of data from State database to TINXSYS database.
(n) MIS reports have been developed and moved to the internet domain so as to be available to all tax officers.
(o) The ISO 27001 certification of the TINXSYS Data Centre was renewed and extended till 2012.
The initial five years contract with the Service Provider and the Consultant of this project expired on 31st October, 2009. The five year contract period of these two agencies was extended by the Empowered Committee till 31st October, 2010, which was further extended by Empowered Committee till 31st October, 2011.