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

Entry Tax on Tipper Vehicles in Tamil Nadu: Verify Constitutionality Under Tamil Nadu Tax on Entry of Motor Vehicles Act, 1990. A user inquired about the applicability of C-form for purchasing a tipper vehicle and the requirement to pay entry tax in Tamil Nadu, despite using the C-form for interstate billing at a reduced tax rate. The user noted that other states like Kerala and Karnataka registered vehicles without objections. A consultant responded, advising that Tippers might fall under specific points in the Tamil Nadu Tax on Entry of Motor Vehicles Act, 1990. They suggested verifying if the Act was declared unconstitutional by the Madras High Court, as this would exempt the entry tax. They emphasized that tax laws differ by state, so comparisons are not valid.