Resale tax may be abolished; octroi to go up by 1%

Upset over the impact of resale tax, representatives from the Trade

Association of Information Technology (TAIT) and Computer and Media Dealers

Association - Pune, recently met Maharashtra State Finance Minister Jayantrao

Patil and the Sales Tax Commissioner SS Kshatriya to seek abolishment of resale

tax on IT products. But more tax is in the offing in Mumbai with the BMC

proposing one percent increase in octroi.

The meeting which lasted for two hours, ended on a positive note with the

government officials agreeing to work out an agreeable solution soon.

While no time frame was given by government officials, trade representatives

who attended the meeting are hopeful of an immediate solution.

State toexplore legal implications before exempting resale tax Resellers willing to pay a higher sales tax of 4.5 percent instead

According to the Finance Minister, the issue will be sorted out only after

exploring legal implications that could arise out of exempting resale tax for IT

products.

"Government officials appeared to have understood that something is

wrong, after we explained the adverse implications of resale tax to the

State," says CW Kadwadkar, Executive Secretary, TAIT.

In an attempt to get rid of resale tax, trade representatives even expressed

their willingness to pay a higher sales tax of 4.5 percent against the

prevailing four percent on IT products. "This will ensure the much needed

revenue for the state government," says Kadwadkar.

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