Vat & entry tax

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This query is : Resolved

RABI SANKAR PATRA (Querist)

02 December 2012 i) Whether it is allowed to sale under VAT within Odisha at the same price i purchased, so no additional VAT to be deposited, since what ever I will collect, i will take credit as i have already paid the same amount of tax while purchased.

ii) I am in Odisha and purchase some materials from a manufacturer within Odisha and he charged 1 % entry tax. When i sale the same materials to another person inside Odisha, whether Entry Tax is applicable ? if yes at what rate and whether i can take credit of what i have already paid, in line with VAT? ssubsequent sale

CA. C V SURYAM

CA. C V SURYAM (Expert)

02 December 2012 1) Yes, you can sell at cost price. But how long such type of business can be continued without any margin which will be diffficult to prove in long run.

2) a) As per Orissa Entry Tax Act, tax shall be levied on entry of goods into a Local Area from any place outside that Local Area or from any place outside the State, when brought for sale, consumption or use.

b) Such tax paid, if any, originally by the puchaser or person who brought those goods initially, then no further entry tax is required to be paid by subsequent buyers from him.

c) Set-off of such entry tax against VAT/CST is not available. It is a cost.

sharma.ctc@gmail.com

sharma.ctc@gmail.com (Expert)

22 February 2013 To add to what Mr. Suryam has said.

Entry tax credit is available in form of set-off, if you are a manufacturer.

Secondly, If you have already paid ET while purchasing the goods, you dont have to charge ET again on selling those goods. Instead you can put a stamp "ET paid goods"

Thanks

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