Flipkart’s Ghaziabad Warehouse Raided by UP Tax Officials; Penalty Worth INR 13.8 Lakhs Issued

flipcart_20120609A warehouse operated by Flipkart based out in Ghaziabad has been raided by Commercial Taxes Department of Uttar Pradesh for non-compliance with the rules related to import of goods. The company however denies the occurence of this event.

As per an ETRetail report, The warehouse has been slapped with a penalty of INR 13.8 lakh and goods worth INR 47 Lakh have been seized by the authorities. “Two trucks were bringing shoes from outside Uttar Pradesh for the Dasna-based warehouse of Flipkart. However, they were carrying more goods than they had declared. Also, we found a blank Form 38 with them, which is an issue of non-compliance,” said an official of the department.

Form 38 is a document that companies are required to fill when they sends products and merchandise from one state to another. As per the authorities, they found 171 pairs of shoes in the truck that were undeclared.

The official further added that the department has received several complaints against Flipkart from local traders about evasion of VAT and selling goods below maximum retail price. However, a Flipkart spokesperson denied the news to ET and called it absolutely incorrect.

Also Read: Flipkart Gets Clean Slip from Enforcement Directorate; Declared Not Guilty over FDI Violation for Now

Apart from this, Flipkart recently got a clean slip from Enforcement Directorate which had earlier announced the e-commerce player to be guilty of FDI violations. As of now ED’s investigation into Flipkart has so far not found the online merchant guilty of violation of FDI rules.

See Also: Amazon in Trouble: Amazon Bangalore Warehouse for FBA Seized by Tax Authorities

This certainly isn’t the first time an e-commerce company has ran into trouble with Tax authorities over warehousing issues. Amazon too had faced a similar issue and was in talks with the Government of Karnataka to sort out the discrepancies and allow their warehouse operations like usual. Even though these e-commerce companies have been running  for years now, it’s not clear why these issues still keep popping up. Or if such problems always existed, why didn’t the Government act on them earlier? Could the agitated offline retailers be a reason for the Government to feel pressured and be more stringent with the e-tailers? Do share your views in the comments below.

Image Source: Kreate

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