HC declares compensatory tax on online sellers as illegal
Patna,(BiharTimes): In what can be termed as a major victory for online sellers the Patna high court has declared compensatory tax as illegal and unconstitutional.
The state government had imposed a compensatory tax as per Bihar Finance Act, 2015.
This will help in bringing down the prices of the goods. The online sellers are paying the entry tax for the goods that are sold in the states. Every state in India has its tax rate apart from the common central taxes.
Flipkart has filed a case against various state governments challenging the tax systems. Madhya Pradesh imposed 6% tax, and Uttarakhand has imposed 10% tax, Gujarat and Rajasthan have also imposed some special taxes.
