We are planning to get registered as dealer under Karnataka VAT Act.We will open a depot in Bangalore.We will purchase goods from outside Karnataka ,stock it in the depot at Bangalore and sells the same to outside the state .There will be no local purchase or sale.Our products are Diesel Generating Sets and Earthmoving Equipments. Kindly clarify : 1) Whether Entry Tax is payable by us. 2) What forms are required for entry into and exit from the state towards inter-state purchase and inter-state sale of our goods.
11 May 2009
Entry tax is payble only if goods are sold, used or consumed with in local area in this case you are liable to pay entry tax if you sold, use or consumed goods in state of karnatka, in this case goods are sold out of state no entry tax is payble as goods are not sold use or consumed in local area.
statutory forms are reuired on entry or exist of goods from state