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ENTRY TAX KARNATAKA

vasudev (ca ) (153 Points)

12 January 2009

Lets say I purchase raw materials which will attract entry tax and pay them @ 5% and if i convert them into some other product and sell outside the area, is the buyer again liable to pay entry tax on those. can i issue him form 40 for the same?

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11 Replies

RAJU (LEARNER) (1089 Points)
Replied 13 January 2009

Deduction from taxable turnover can be claimed only if the material is transferred out as it is. So it is necessary that the same product is sent out. Hence, you can not issue Form-40 for transfer out.

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raju (practitioner) (31 Points)
Replied 14 January 2009

Buyer is not liable to pay entry tax as the goods has changed its form, provided that the final product you have sold is not a schedule goods under the Entry tax Act. Question of issued of Form-40 doest not arise at all as the goods has changed its form. Any question you can ask more

vasudev (ca ) (153 Points)
Replied 14 January 2009

@ Raju

But how to confirm as to the new product is in scheduled goods or not. like the act says and others. But as per u if the new product is in scheduled goods one has to pay entry tax again even if all the raw materials have suffered the tax once?

Any way through department to get it confirmed?

If u can give u r mail i can explain.

rathish kumar.c.c (tax consultants) (271 Points)
Replied 16 January 2009

Buyer is not liable to pay entry tax as the goods has changed its form, provided that the final product you have sold is not a schedule goods under the Entry tax Act. Question of issue of Form-40 doest not arise at all as the goods has changed its form.

subair (a/c) (22 Points)
Replied 16 February 2009

i want to know the rate of entry tax of the following items.gold purity checking machine,electrical goods,ccd camera

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chand (student) (24 Points)
Replied 20 February 2009

Dear sir,

Plz ER-6 Execl fromate.

S HARIHARAN (MANAGER -FINANCE) (23 Points)
Replied 07 August 2009

Please let me know the entry tax rate for the following;

Entry Tax for Registered & Un Registered Dealer for CNC Machine (Computer Numeric Control)Machines Capital Goods sold towards

Colleges & Polytechnic 2) CNC Machines Sold towards Commerical purpose ie., towards Industry - Rate of Tax ? Any Expemtion towards reduce the tax by getting form from the dealers.

Any Slap for Rate of Taxed etc.,

Regards

Hariharan S

Ravi Kumar. R (Trainee) (23 Points)
Replied 18 June 2010

Hi 2 All

Can any explain me the entry tax concepts & also the accounting entry & the treatment

in monthly vat returns

Ravi

Girish (Accountant) (22 Points)
Replied 03 October 2010

Please let me know if a owner of Proprietory Manufacturing concern purchases one machine for his production as capital goods from the same state and one from another state, so is he liable to pay entry tax on the both machine?, If there is any exemption on any of the machine, please let me know the notification number for exemption.

If he has to pay the tax, how much the rate for within the state purchase and how much for interstate.

Thanks,

raghavendra (Sr. Engineer) (21 Points)
Replied 25 October 2010

Dear Sir,

Can u provide me the Entr Tax rates on all items which enter into karnataka(mainly elctrical Substation & transmission line equipments)

Regards,

Raghavendra

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Rajanna v n (Accountant) (21 Points)
Replied 20 June 2012

We have purchased certain machinery in Bangalore from very next bilding costing rs 15.00 Lakh. that means same locality. Department is insisting for Form 40. but the manufacturer says form 40 can be issued by dealers only. Are we liable to pay entry tax?