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Wednesday, July 18, 2018

Chamber seeks change in mode of octroi payment

A tax reform proposal,mooted by the manufacturing industry to the local corporations of Pune and Pimpri-Chinchwad,seeks to do away with the payment of octroi at octroi posts and rationalisation of duty structure,to avoid disputes on tax payments.

Written by Ishfaq Naseem | Pune | Published: January 1, 2012 1:23:12 am

A tax reform proposal,mooted by the manufacturing industry to the local corporations of Pune and Pimpri-Chinchwad,seeks to do away with the payment of octroi at octroi posts and rationalisation of duty structure,to avoid disputes on tax payments.

Moved earlier this year with the Pune Municipal Corporation (PMC) and Pimpri-Chinchwad Municipal Corporation (PCMC),the proposal aims to bring reforms in the octroi collection by introducing book-based payment of octroi as well as rationalisation in the rates of the tax payment.

Anant Sardeshmukh,director-general,Mahratta Chamber of Commerce Industries and Agriculture (MCCIA) said,the industry body has asked for doing away with the mode of payment of octroi at the nakas and instead has asked for making of payments based on the returns filed by the manufacturers. He further added that the book-based process will help simplify the payment of tax.

“The tax structure needs to be rationalised and payments should be made on the basis of industrial goods,consumer goods and luxury goods. This is important to avoid payment disputes for items which are liable for taxation. There are disputes particularly over the rate structure for different products,made from the similar materials,” said Sardeshmukh.

The simplification in the payment of octroi has also been asked to ensure timely claim of refunds of the tax. “The octroi has to be levied only on the products,which are consumed in the city. Many a time the products that are imported are not consumed here but exported. It takes at least 6-7 months to get the refunds on such imports,” said chairman of auto-component committee of MCCIA,Shailandar Goswami.

Sardeshmukh said the industry is also looking at introducing the book-based system of octroi to ensure momentum in growth. “The simplification in octroi is a major proposal,which we are rooting for,” he said.

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