Entry tax on automobile
Punjab Government has levied entry tax on all motor vehicles purchased from outside the State of Punjab but brought into the local areas of Punjab for registration under Motor Vehicles Act, 1988 vide notification dated 04.04.2013.
The tax has been levied on all the persons except the Taxable persons registered under Punjab VAT Act, 2005 and who exclusively deal in sale and purchase of motor vehicles. Thus entry tax on automobiles will not be payable by the persons registered under Punjab VAT Act and exclusively dealing in sale, purchase of motor vehicles.
The rate of tax is the difference between the VAT payable on the motor vehicle under Punjab VAT Act, 2005 and the VAT or CST paid in other State from where the Motor Vehicle has been purchased.
It looks like the intention of the State is to levy entry tax on those persons (except the dealers of motor vehicles) who purchase the motor vehicle from outside the State of Punjab so as to pay lesser tax than which would have been payable in Punjab, had the vehicle been purchased from the State of Punjab.
Tax would have to be paid before submitting the documents of such vehicle for registration before the registering authority or within a period of one month from the date when such motor vehicle is brought into the local areas of Punjab, whichever is earlier.
However it should be noted that entry tax has been stayed by Punjab & Haryana High Court in Bhushan Power & Steel Ltd vs State of Punjab case so anybody who does not want to pay entry tax may apply for deferment from payment of entry tax.
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i purchase a car from amritsar.and my home town is in rajasthan. Iam a employe of army at amritsar so how did i register this car in amritsar. In the bill of my car .my home address is mention
sir, we purchased maruti alto k10 in 24th march 2013 from chandigarh (UT). we got it registered in mohali, punjab and we were not asked by authorities to pay the entry tax. we bought the vehicle on loan and so the rc was hypothecated to the bank. but now we have repaid the loan and we want to remove the hypothication thing removed from the bank and want a new registration certificate. now the concerned authorities are asking us to pay entry tax plus the interest. do we need to pay it as we heard the HC has stayed the order.
pls guide us.
thanks,
regards,
narender
r/o, baltana, punjab-140603
Sir,
I had Purchased a car from Chandigarh in February 2013. I have not yet got the registration done and want to get it registered in Punjab. Am i liable to pay entry tax as the vehicle entered Punjab in the month of February and the notification is dated 4.4.2013. Please advice.