Entry tax and the vat input credit on furnace oil

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ANIL KUMAR (Querist)
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23 August 2012 1. Our company is purchasing the furnace oil from with in the karnataka state. so they are charging VAT @14.5%, how much can we take the credit i.e whether 14.5% or 12.5% ?

2. In case of Intra-state purchases, how the seller calculates entry tax? Whether after Vat or Before VAT?

Please answer as early as possible?

MJ Krishnamurthy

MJ Krishnamurthy (Expert)
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28 August 2012 Mr Anil Kumar,
When you are buying furnace oil within Karnataka whatever VAT you pay in your invoices i.e.14.5% can be claimed as input tax.While calculating the entry tax entire cost,including freight,handling,tax and octroi are to be taken together.....MJK

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ANIL KUMAR

ANIL KUMAR (Querist)
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03 October 2012 Dear Sir,
One Company in karnataka ( So With in the State purchases for us) is saying that, they will charge (Collect) the Entry tax in the Invoice itself and issue the Form - 40.

They are saying that they calculate the Entry tax Before VAT.

But we have to Transport that material from his factory to our factory by our vehicles.

So shall we again pay the entry tax on transportation also..??

PLEASE CLARIFY...