C form billing for Tipper vehicle

[Guest]

We are having C-form anexure including for tipper purchasing. we bought vehicle by using that c -form and make a interstate billing. Vehicle billed only with 2% not with vat. vehicle also transited to tamilnadu. but when the time of registration RTO asked for entry tax we say we are having c-form for this purchase so he asked a NOC from commercial sales tax department.

We approached the commercial tax department they said c- form is only valid for vat and not for entry tax so you have to pay entry tax.

I need a clarification when we have c- form wat's the use in c form. i have to pay entry tax or not. but in other state like Kerala and karanataka they registering the vehicle without any objection. I need a clear clarification. kindly help me.

[YAGAY andSUN]

Dear Prakash,

In our opinion, Tippers may fall either in point no. 4 or 6 of the tax schedule of the Tamil Nadu Tax on Entry of Motor Vehicles into Local Areas Act, 1990. Please check the Act read with Rules made thereunder. Please also check that whether this Act has been pronounced as unconstitutional by the Hon'ble Madras High Court or Not. If so then entry tax would not be applicable otherwise you would have to pay the Entry Tax on the Tippers.

Please also go through the Notifications, Clarifications and Circulars issued by the TNVAT Department in this regard.

Further, you cannot do comparison TN Entry Tax Act with other State's Entry Tax Act as the jurisdiction are different.

We are embedding a link for your ready reference.

http://www.tnvat.gov.in/English/ENTRYTAX_MOTOR%20VEHICLE_ACT1990.pdf

Regards

Team YAGAY and SUN

(Management and Indirect Tax Consultants)

AI Summary

C-form and entry tax: C-form does not automatically exempt tippers from state entry tax; classification and constitutionality matter. C-form use for an interstate tipper purchase does not, by itself, exempt the purchaser from state entry tax; the commercial tax department regards C-forms as effective for VAT only. Liability depends on the tipper's classification under the Tamil Nadu Tax on Entry of Motor Vehicles into Local Areas Act, 1990 and on whether that Act has been declared unconstitutional; the purchaser should also review relevant departmental notifications and circulars and cannot rely on other states' differing practices.