Difficulties hiked for e-commerce companies as the 10% entry tax imposed

Business
Mar 15 2016 12:39 PM
Harshita

Difficulties hiked for e-commerce companies as the 10% entry tax imposed

For Indian e-commerce companies selling goods to different states is about to get little difficult now as day after e-commerce giant Flipkart sued the Uttarakhand government for the levy of an entry tax, a report said. As more states mull levying the 10 per cent entry tax the e-commerce have to face a bit difficulties.

Currently, Uttarakhand, Bihar, Assam, charge 10 % entry tax on goods bought online and coming into the states from outside. Somehow, the tax billed to the courier company and eventually be passed to the customers. And reportedly, now Madhya Pradesh, Gujarat and Rajasthan are also planning to issue such tax.

Now, many e-commerce companies are planning to seek justice against the levy individually and collectively, the report says. The entry tax also said as ‘anti-consumer’ and ‘discriminatory’ and ‘against the public interest’ by various participants of the industry.

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