Taxation Deptt's action re shipments into your state ?

[pawihte]

Hi all, even though this is my first post, I'm not new to the forum. I've been lurking for quite a long time. My post does not specifically concern computers and technology, but also has an indirect connection with those too. Please bear with me while I give some background before I ask my question :

I am from Mizoram, one of the most isolated states in India. It has two main entry points - the single airport and a highway via Assam. Ever since my state started levying VAT a couple of years ago, the Taxation Deptt has created all kinds of complications regarding anything being brought into the state. They require a Way Bill even for the smallest shipment, including low-cost second-hand items bought through eBay. They have set up check gates at the two entry points and check everything including personal baggage as if they were at an international border. If a courier package does not have a Way Bill, they confiscate it.

I believe West Bengal has also imposed similar restrictions. I've seen at least one regular seller on eBay who warned anyone from West Bengal not to buy his items due to problems in sending them to WB. I am old enough to remember a time when the corrupt customs people at Kolkata (then Calcutta) airport made a habit of harrassing passengers so much that international airlines banded together and stopped all flights into Calcutta.

My question to forum members in other states is: What is the situation regarding shipments sent to your state ?

Added on 18 May '08 for further clarification :
If you think this does not concern you, here's how it could affect you. Suppose you want to order a piece of hardware from somewhere else and have it shipped to you by courier. If your state starts implementing stiff regulations like my state has done, you're screwed unless you want to go through all this hassle :

1. You contact the source and get all details.
2. You apply for a Way Bill at your Taxation office, entering those details in your application.
3. You wait for your application to be processed and the Way Bill issued to you.
4. You send the Way Bill to the company or the seller.
5. The seller fills in the Way Bill form with details such as value, mode of shipment, consignment number, etc., and sends the Way Bill back to you along with their bill and proof of despatch. He also despatches the item separately.
6. After you receive the filled up Way Bill, you present it to the Taxation check gate. Tough luck if it's in another town or city.
7. The Tax people on duty at the check point checks the package details against your Way Bill. Then, and only then, they allow it to go through.

If the shipment reaches the check gate before you receive the Way Bill and you have time to send it again to the check gate, they confiscate the item and this further complicates things.

You have to go through all this hassle and delay whether you're ordering something from a large well-known company or a minor second-hand item from eBay or from a member in Digit forum Bazaar.

I want to start a campaign in my state against this ancient, inefficient and unreasonable practice. But, before I start, I would very much like to know how things are done in other states. Please respond with information I can use.

[healerneil]

Hello
Even though the post is quite old yet the problem is still relevant
I dont know why other people havent replied to your post or maybe its just complete apathy to the cause as everything works hunky dory in other states
Well, for a bit of introduction. I am from Guwahati, Assam..so a North Easterner like you too. And i feel yes, the region cannot progress. Even Kolkata has a pseudo progress. Look at regions around Kolkata for the proof.
I too have faced the same predicament and have already lost Rs, 3500. About 3 weeks ago, i did order a AMD Athlon 5200 from Prime ABGB in Lamington Road Mumbai through their online shop. The material was shipped in 3 days.. Nop problems in that
Yet i didnt reciefve the item even after 1 week. Enquired with their shop, they gave me shipping details and i came to know it was shipped on some obscure courier service called Oxford. I have never heard of that while their web site states that it is their policy that they ship only through DTDC
I somehow got the no. of the courier company and called up. And they said that the material is held up due to sales tax issues. No waybill has been provided witht he item and now it will carry a fine of Rs 3500
So there it is. The same problem. I am helpless. The shop most defintely wont pay up the fine...And i can't pay a double Rs 3500...so a 3500 down the drain! Long live India...Long live the politicians and people of INdia. Pround to b a part of such a great country!

[pawihte]

Thanks for the reply. It is indeed disappointing that none of the 100+ readers of my post replied. Even if no other state imposes such unreasonable restrictions, the information would still be very useful if someone from the more enlightened states said so. I could use the info to start my campaign.

In fact, the minister of taxation in the newly elected government of my state is a personal friend (yes, I am one of the older forum members). But, to be able to discuss the matter with him, I need information about the way other states enforce their taxation rules regarding import from other states.

So, other forum members, please provide your inputs. You don't have to be an expert on the matter. Just write about your own experience in buying something from another state and/or what you know, even what you've heard from others.

[NucleusKore]

This is nothing new. The problem is absence of a central tax system, even the VAT we have now is not properly implemented. I heard that Karnataka VAT (KVAT) is the highest in the country (12.5% ?). There are Tax dept sleuths at all major air and sea ports scrutinising incoming goods.

[jxcess3891]

yawn...............

[healerneil]

Hah.. Just can't undrstand the system. it is not that the tax isnt paid. There is a valid bill and everything. We are living in 1 country ...what is the meaning of paying taxes in every state???
India really is a country of numbers and not brains. And it appals me even more during the time of elections seeing all the nice divine words from our heavenly politicians.
Look at Kolkata fancy market, kidderpore and one is left with no doubt regarding from where the goods are being imported. IPODS at price of local mp3 players and you know the source..yet i am afraid that the so called sentinels of our law and order are scared sh*t raiding them, Don't they require taxes then???
Hah...money is no matter...It comes, it goes...without sounding philosophical! But is this the way everything is handled in the country?? India shining?? Jai HO/??? hahahah...that is a laughter in a state of delirium.
Mr. Editor Sir...would you consider shedding a light on this matter in your next editorial.. and if this is the taxation system in the country..It's ok..no probs..but why don't the shops then mention in their online portal that procuring items over the Net..there might be such taxation problems in other states..and why even after it is stated that they would ship through DTDC, do they go for cost cutting and ship through some obscure courier company information regarding which won't b gathered with as much hardship as searching for the proverbial needle in a haystack!

[pawihte]

Originally Posted by jxcess3891

yawn...............

Does that make you feel clever?
The next time you have a serious problem and you want to discuss it with others, whether online or in person, how would you feel if one of them deliberately yawned in your face? Do you have any idea how insulting that is?

To the others, thanks for your response, although I had hoped for more replies, with information about how things are done in your states. And sorry about the late reply - I was out of station for quite some time.