Job Work and Entry tax of UP state.

[Narendra Soni]

Dear Expert,

HDPE/PP Bags & Fabric are come under entry tax provision w.e.f.03.06.2016 under UP state entry tax act.

Our case is :- We sent PP Granules (raw material) to job worker, the RM is not taxable under entry tax act of UP.

The Job worker made PP Fabric from PP Granules and returned the PP Fabric to us.

Please suggest, whether the PP Fabric received from Job worker from outside local area is taxable under entry tax of UP.

Please note that PP Granules is not subject to entry tax but PP fabric is subject to entry tax, but PP fabric received after job work of PP Granules.

[Ganeshan Kalyani]

Sir, the Entry Tax law is different from VAT. ET is applicable on goods entering the municipal area. It does not states anything more than that. If material entering the area the rate as applicable on goods as per ET Sch. Entry is payable. This is my view. Thanks.

AI Summary

Entry tax triggered when processed goods enter the municipal area; taxable finished products incur scheduled entry tax. Whether finished PP fabric returned from a job worker outside the local area is subject to Entry Tax when the raw PP granules were not taxable but the finished fabric is listed; the operative rule is that Entry Tax is levied when goods enter the municipal area and, if the finished goods are scheduled as taxable, entry tax is payable at the applicable rate.