The State Government has modified the Entry Tax return form (Form E3) in order to avoid ‘double taxation’ for State manufacturers dealing with packing materials of finished goods.
Hitherto faced with double taxation, the manufacturers would now get the much-needed relief from October 1 this year as the Government notification on modified return form would come into effect from that day.
It may be mentioned that after meeting a delegation of Odisha Industries Association (OIA) in April this year, the State Commercial Tax Commissioner Manoj Ahuja had assured that steps would be taken soon to eliminate double taxation due to faulty entry tax return form.
Accordingly, the Government in July this year modified the return form in order to enable the dealers to file returns for the tax period beginning October 1, 2013.
OIA president Abani Kanungo and his deputy Rajesh Kanungo in a release have expressed their gratitude to the State Government and more particularly to the commercial tax commissioner for coming to the rescue of State manufacturers dealing with packing materials.
Speaking to this correspondent on Thursday, Rajesh Kanungo said finished goods taxed twice due to faulty entry tax return form were very much against VAT ethics.
He said due to error in electronic return form (e-form), entry tax amount of packing materials again get added up with entry tax due on total sale value which leads to double taxation.