18 August 2008
Ours is a 100% EOU registered under STP Scheme and operating from Feb 2005 in Karnataka. We are importing capital goods from different countries and would like to know whether this will attract Entry Tax under the The Karnataka Tax on Entry of certain Goods AND under The Karnataka Special Tax on Entry of Certain Goods Act, 2004.
24 August 2008
Dear Sir, With regards to imports of Karnataka Tax on Entry of Goods, u are liable for 2% entry tax on import of machineries (though the department cannot levy the same, but will harass and demand this liability). With regards to goods taxable under Special Entry Tax, the act is struck down by the Hon'ble Karnataka HC. However as precaution, please make necessary disclosures in your VAT return.
CAclubindia
