Good news for Odisha manufacturers dealing with packaging materials of finished goods. Hitherto faced with double taxation on such goods, the manufacturers would get a much-needed relief as steps are mooted to eliminate double taxation due to a faulty entry tax return form.
“Double taxation by way of entry tax on packaging materials of finished goods for Odisha manufacturers may end soon as the Commercial tax commissioner Manoj Ahuja assured about the same to a delegation of Odisha Industries Association (OIA) here recently”, said an OIA release on Wednesday.
An OIA delegation led by its president Abani Kanungo and vice-president Rajesh Kanungo met Ahuja in his office here on Tuesday and submitted a memorandum explaining as to how the Odisha manufacturers are ending up paying double tax in the form of entry tax on packaging materials.
Kanungo said finished goods taxed twice due to a faulty entry tax return form is very much against the ethics of VAT and this should be immediately stopped to provide a much deserved relief to the State manufacturers dealing with finished goods of packaging materials.
Explaining the faulty system, Kanungo said manufacturers are paying entry tax on the sale value of finished goods, which includes cost of packaging material involved in it.
“But due to errors in electronic return form, entry tax amount of packing material again gets added up with entry tax due on total sale value,” Kanungo said, adding that this leads to double taxation on manufacturers.
After being convinced with the explanation, the commercial tax commissioner assured the OIA delegates that he would modify the entry tax form within two months after getting it approved from the Government.