GIBA demands entry point tax on IT products

GIBA submitted a memorandum to the state Commercial Tax Department demanding entry taxes on IT goods

Raising concerns over corporate houses buy IT products directly from vendors and peripherals and evade taxes showing it as a capital goods, Goa IT Business Association (GIBA) has demanded to impose entry taxes on goods coming in the state.

GIBA organized an executive meeting on Wednesday where number of issues were discussed.

Mr. Sudheer Prabhu, General Secretary of GIBA said, “We had invited all senior members, distributors and sub distributors to take a overview of current IT scenario in the state. Small dealers and resellers have been adversely affected due to online sales.”

He said that big corporate houses are directly buying goods from vendors and peripherals in bulk and show it as capital goods, thus evade taxes. Mr. Prabhu said that the State Commercial Tax Department should immediately look into the issue as the state is losing valuable tax revenue.

“As tax component does not come, the prices become cheaper and small dealers cannot compete. We have asked for IT products being brought in the state to be declared and taxed at the entry points so that corporate start buying locally”, he said.

GIBA had earlier submitted a memorandum to the state Commercial Tax Department demanding to look into the serious issue which is affecting small dealers and resellers. The state department has agreed to the demand of GIBA and has issued a notification which will come into effect from 22nd  November.

The Association has decided to wait for the notification before taking further action.

Leave a Reply

Your email address will not be published. Required fields are marked *