Till now i am working, entry tax only for capital goods received with in local area. Recently one issue came up..even spares purchased for repairing the machinery also need to pay entry tax..whether this is right?
If any case law relating to this available..can provide the details.
26 January 2009
Yes the list of goods has been mentioned in Karnataka entry tax and karnataka special entry tax. If your item is falling under this schedule then you have to pay entry tax. However when you have to pay regular vat tax on sales then you can set off this entry tax paid by you.
27 January 2009
There is no levy of special entry tax as the Special entry tax Act is strucked down. Under the Entry tax Act, there is a notification issued where the goods are notified and accordingly the rates are determined. For the entry of machinery or its parts or its accessories (except agricultural machinery) within karnataka (local area) are liable to entry tax at the rates specified in notification. As on date the rate of tax for such goods is 2%