Entry Tax in the State of Andhra Pradesh

[Ganeshan Kalyani]

As per sec 3 of Andhra Pradesh Tax on Entry of goods into local area, 2001. purchase tax to be paid by the purchaser. Does the act gives any exemption for the movement of agriculture produce. Does it exempts the payment of entry tax if the produce is delivered by farmers at the purchaser location.

[YAGAY and SUN]

Dear Ganesh,

Normally, Entry Tax is applicable on the goods covered under the Notification issued by the Entry Tax Act.

Please check the Tax Rate Schedule and notifications in this regard.

Regards,

Team YAGAY & SUN

Management & Indirect Tax Consultants

[Ganeshan Kalyani]

With respect to the GO & Notification relating to Andhra Pradesh Tax on Entry of Goods into Area Act, 2001. The applicability & rate of entry tax payable for agriculture produce is nowhere mentioned. Kindly share the reference with regard notification no. and related note if any.

[THESINGARENI COLLIERIESCOLTD]

We hope that the Act is not valid as the Honurable AP High Court stuck down  the Act. Pl check up validity of the Act.

Taxation Section

[Ganeshan Kalyani]

With the reorganization of the AP State the existing Act is said to applicable till new Act & Rules are made applicable. The Act which is went through was from the government web portal. Hence I would like to get some more clarification as regard the subject in discussion.

[THESINGARENI COLLIERIESCOLTD]

There are two Acts on Entry Tax in Andhra Pradesh.  AP Tax on Motor Vehicles into Local Areas Act, 1996 and Andhra Prdesh Tax on Entry of Goods into Area Act,2001. The High Court of Andhra Pradesh in Sree Rayalaseema Alkalis & Allied Chemicals Limited case (13 VST 15)  declared Section – 3 of the Entry Tax Act, 2001 as unconstitutional. However, the former Act is still in operation.

Submitted for information please.

Taxation Section

AI Summary

Entry tax applicability uncertain after key provision's invalidation, affecting taxation of agricultural produce delivered to purchasers.
Applicability of entry tax to agricultural produce hinges on whether the Act or notifications classify such produce as exempt and on purchaser-liability under the statute. A judicial declaration rendered a provision of the 2001 Entry Tax Act unconstitutional, producing uncertainty about that Act's reach, while the separate motor-vehicles entry tax enactment continues to operate; current notifications and any new post-reorganization rules determine actual liability.