Entry tax on computers to go

Entry tax on computers to go
The Times of India

Bangalore: Good news for the IT industry. The Karnataka government has decided to abolish the Special Entry Tax on electronic goods, parts and accessories, computers of all kinds, computer peripherals and computer software.

Deputy chief minister and finance minister Siddaramaiah brought the tax into force on October 1, 2004, as was announced in the State Budget during July 2004.

The tax had come as an obstacle in the expansion plans of many an IT company. Companies like MsourcE had to hold back its plans to expand its operations in Tier II cities.

“Today’s decision will enable companies like ours to decide faster on expansion plans,” said Ravi Ramu, chief financial officer, MsourcE.
State finance department sources have confirmed that there would not be any serious issue on reimbursement of SET, especially for companies that may have already paid it.

“Actual payments made so far are very minimal. EOUs were only asked to get their goods stamped on entry. This was followed by making an assessment and then the actual payment,” said a government official.