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?
Entry tax is applicable if the goods entered into local area for use, consumptione..within the local area. Even the goods are purchased at NIL Value we need to pay tax on that. As per the KTEG, if goods have not been purchased, the prevailing market price of such goods in the local area to be considered for the purpose of entry tax. Value of goods includes trasnportation, commission, insurance etc.
Please mention the name of the state if you require any clarification on any State tax.
In karnataka, not all goods mentioned in 1st Schedule are taxable. Only those goods Notified in official gazzete are taxable. Check whether those goods are Notified are not.
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