23 July 2013
I have a client, which made a contract with his Supplier for delivery of certain goods. Contract says that Out of 100 Goods, supplier will sell 5 goods Free of Cost. Now, Supplier Raised the Sale bill amounting to Rs 59 Lacs (only for Excise Duty Purposes). They have not charged any CST on the same since value is nil. It is also written there that Basic Value Free of Cost. I would like to know that whether Entry Tax is payable on the same or not. If payable then on what amount?
It is requested to please mention the name of state against which the query is related, If its related to Madhya paradesh please see section 2(L)of Entry tax Act, 1976, "Value of goods means ......or the market value of such goods if they have been acquired or obtained otherwise than by way of purchase."
14 August 2013
In many other states also when some taxable goods are brought into a local area for 'consumption use or sale therein' entry tax is attracted on the 'ad valorem'amount. This means its market value plus its transportation and handling charges,including octroi etc,taken together becomes chargeable with entry tax.All the taxable goods received,(not returnable) on stock transfer also become liable for ET.If value is not mentioned in the documents then its market value is ascertained......mjk
CAclubindia
