Maharshtra entry tax into local area

This query is : Resolved

Rakesh Bandal (Querist)
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20 February 2019 Dear Experts
My query is regarding Maharashtra Entry Tax into Local area Act 2002

VAT officer asking about Entry tax on purchases from Gujrat
I have purchased Tiles and marble slabs in the year 2014-15 and supplier charged full VAT @ 12.5% as No C form issued (C form can not be issued by composition dealer)
I am builder and paying VAT under composition scheme @ 1% on agreement amount

My query is whether I required to pay Entry Tax Now as I was unaware about the tax

Rakesh Bandal

Rakesh Bandal (Querist)
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21 February 2019 Experts Waiting for reply, please reply

Asha Kanta Sharma

Asha Kanta Sharma

(Expert)
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09 July 2024 Under the Maharashtra Entry Tax on Goods Act, 2002, entry tax is levied on goods brought into a local area for consumption, use, or sale. Here’s how it generally applies to your situation:

1. **Applicability of Entry Tax:**
Entry tax is applicable when goods are brought into Maharashtra from outside the state. It is typically charged at the point of entry into Maharashtra.

2. **Timeframe for Liability:**
The liability to pay entry tax arises at the time of entry of goods into Maharashtra. If you purchased tiles and marble slabs from Gujarat in the year 2014-15, and these goods were brought into Maharashtra, entry tax should have been paid at that time.

3. **Impact of Composition Scheme and VAT:**
Since you are a builder paying VAT under the composition scheme at 1%, and if the supplier charged you full VAT without issuing a C form (which is not issued by composition dealers), it indicates a different issue related to VAT compliance rather than entry tax.

4. **Unawareness and Liability:**
If you were unaware of the entry tax requirement at the time of import of these goods into Maharashtra, you may still be liable to pay the entry tax along with any applicable penalties and interest for non-compliance. Unawareness of the law does not typically exempt you from fulfilling tax obligations.

5. **Consultation with VAT Officer:**
It’s advisable to consult with the VAT officer who has raised this query. Explain your situation, including your compliance under the composition scheme and the circumstances of the purchase. They can provide specific guidance on whether entry tax is applicable, any waivers or reductions available, and the process for rectifying any non-compliance.

**Resolution and Compliance:**
To rectify any potential non-compliance, you may need to file a declaration and pay the applicable entry tax along with any penalties or interest. The VAT officer can guide you through the procedure and any necessary documentation.

In summary, while the VAT issue with the composition scheme is separate, if goods were brought into Maharashtra from Gujarat, entry tax may apply regardless of VAT issues. It’s crucial to clarify this with the VAT officer and take necessary steps to comply with the entry tax requirements to avoid further penalties.

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