Is entry tax applicable for machinery purchased from a local

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

20 April 2013 Dear Experts

1: Please confirm, whether Entry Tax Applicable for Machinery Purchased directly from a "Local Manufacturer"

and also confirm

2. Who is liable to pay Entry Tax for the following E-1 Transaction.

We(Bangalore) have purchased a machinery from Mr.X(Bangalore) who is an authorized dealer of Mr.Y(Mumbai) against C Form.

CA. Hari Kishan

CA. Hari Kishan (Expert)
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20 April 2013 Sir..

Entry tax @ 2% is liable to be paid for CAUSING ENTRY of schedule goods into the LOCAL area. Mahcine is a schedule goods under the Karnataka entry tax act and hence you shall be liable to pay entry tax @ 2% on the total value of the machine including freight charges. The liablity of entry tax is on the PERSON causing the entry of goods into LOCAL area. Hence in the instant case since the purchasers is also in Bangalore, in my opinion the final buyer shall need to pay the entry tax to the Commercial tax authorities.

Should you have further queries you can mail on pc_chhajer@yahoo.com

Message likes : 1 times

Querist : Anonymous

Querist : Anonymous (Querist)

20 April 2013 Dear Mr.Hari Krishan,

Thanks for your reply, plz confirm for 1st issue. In this case we(Rajajinagar-Bangalore) have purchased a machinery directly from a manufacture(Peenya, Bangalore).

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Asha Kanta Sharma

Asha Kanta Sharma

(Expert)
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01 August 2024 Entry tax on machinery purchased from a local manufacturer depends on the specific state’s entry tax laws and regulations. In general:

1. **For Local Purchases:** Many states have removed entry tax on goods purchased locally due to GST implementation. However, some states might still impose entry tax on certain categories of goods, including machinery.

2. **For Machinery:** If the state imposes entry tax on machinery regardless of the origin, then it would be applicable.

To confirm the specific applicability, you should check the local state’s entry tax laws or consult a local tax advisor.