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Flipkart approaches High Court against Uttarakhand State for imposing Entry tax on e- commerce purchases

Bangaluru: Against the Northern State, which has imposed an entry tax of 10 per cent, since December, last year, on the goods purchases from India’s leading E- commerce major- Flipkart, it has now moved to the High Court of Utterakhand.

In the petition which the Flipkart has filed before the Court in the February, the E- commerce major has claimed the move of the Northern state as ‘discriminatory’. Moreover, notably, the case of Filpkart will be heard by the Court next week. And also, the Court will see other e- commerce players, if joining to help maintain a party in taxation of goods bought online or offline.

As stated for Company, by its Spokesperson, the move of the Uttarakhand Government of imposing such additional tax at the rate of 10 per cent will negatively impact lakhs of consumers in the State who rely on e- commerce. Such additional taxes are imposed on the goods in connection to which the taxes are already paid by the sellers in the State from where the goods have been delivered. Moreover, it is also notable that not only the Uttarakhand Govt. has imposed such entry tax on e- commerce goods, but the States of Maharashtra, Bihar and Karnataka have also do the same. Thus, as per experts, if the case will be ruled in favour of Flipkart then, the same will deter the others from continuing with such tax. And as stated from the side of Flipkart, it is also engaged with the several stakeholders for urging the Uttarakhand Government that it should revoke such additional tax on e- commerce purchases.

Notably, as stated by the Co- Founder of Seedfund (an early stage venture capital firm)- Mahesh Murthy that “it’s crazy” that some transactions are being taxed and not others. Moreover, he said that in his opinion, it is important for the products to have “a simplified taxation”. Also, the global e- commerce giant- Amazon is also in a heated battle with the State of Karnataka against the issue of taxation which has been in continuance since from 18 months back.

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