Increase in rates of Entry Tax by 0.5% under the Punjab Tax on Entry of Goods into Local Areas Act, 2000 and amendment in Schedule C and E through Public Notice dated 18.09.2012
Punjab Government has increased the rate of entry tax by 0.5% w.e.f. 18.09.2012 vide public notice dated 18.09.2012 beside this the Punjab Govt. has amended Schedule C and E appended to the Punjab Value Added Tax Act, 2005 to increase the VAT rates on Dals(Pulses) and unbranded besan from 1% to 1.5% w.e.f. 18.09.2012 which has effected the backbone of the society.
Entry tax is leviable on all persons including taxable person registered under the Punjab Value Added Tax Act, 2005 on entry of goods into the state of Punjab for the notified goods of which the list alongwith rates of entry tax is mentioned below in table. Here it is pertinent to point out that entry tax is payable on the goods even imported from outside the territory of India. Entry tax is not leviable if the goods are not notified for levy of entry tax U/s 3 or 3A or goods though notified but are coming in the state of Punjab for Job Work, Rejected Material and Returned Material subject to certain conditions or goods are not meant for state of Punjab but are in transit for destination outside the state of Punjab.
Mode of Payment
In case entry by Road the importer has to pay the entry tax at the Information Collection Centre and for other imports in Punjab by Rail/Air the entry tax has to be deposited in the office of concerned Asst. Excise & Taxation Commissioner incharge of the district within 2 days of such import and in case where goods are coming through Rails and ICC is situated at Railway Station then entry tax is to be paid at that Railway Station. The payment of entry tax can be made either at the ICC or in the office of the Asst. Excise & Taxation Commissioner incharge of the district against a receipt in form TEG-II in any of the following modes
i) in cash or by way of Demand draft
ii) if permitted by the Excise & Taxation Commissioner, by cheques against the Bank guarantee
iii) with the prior approval of the Excise & Taxation Commissioner, deposited in the office of the Asst. Excise & Taxation Commissioner of respective district within 48 hours
iv) through online or card based modes available with the concerned authorized banks.
There is no separate return prescribed for Entry tax but dealer is under an obligation to file the statement along with Quarterly return.
Deferment of Entry Tax
It is pertinent to point out that importer can defer his liability of entry tax by furnishing an undertaking where he is registered and for that he has to furnish the detail regarding the import of goods for which he has deferred the payment of entry tax as interim stay has been granted by the Hon’ble Punjab & Haryana High Court on the entry Tax in Punjab in the case of M/s Bhushan Steels and Power Ltd. Vs. State of Punjab and consequently a general circular has also been issued by the Punjab Govt. allowing all dealers by furnishing undertaking can get the benefit of deferment until the final orders of the court as it is yet to be decided whether entry tax in Punjab will stand or will be struck down if it lacks constitutional validity.
Conditions for Admissibility of entry tax paid:
Section 13A under the Punjab Value Added Tax Act, 2005 stipulates Conditions for ITC admissibility in respect of entry tax paid by a taxable person. ITC would be admissible if the goods imported are for the purpose of:
a) Sale in the state
b) In the course of inter state trade or commerce
c) In the course of export
d) For use in manufacturing activity of taxable goods within the state or In the course of inter state trade or commerce or In the course of export
Revised Rate of Entry Tax from 18.09.2012:
That by virtue of public notice dated 18.09.2012, Punjab Govt. has increased the entry tax by 0.5% and also amended Schedule C and E by increasing tax on Pulses (Dal) and unbranded Besan from 1% to 1.5%. Copy of the public notice is enclosed.
J S Bedi Advocate
5/13, Central Town,
Behind Ajit Samachar