Entry Tax-Karnataka

[Sanwa Diamond Tools Pvt Ltd]

Dear Sir, Please clarify the following question about Entry Tax in Karnataka 1. Is entry tax liable for raw Material & consumables? 2. Is entry tax liable for trading goods? 3. When stock transfer of finished goods from one Municipality limit to another Municipality limit with in the state is liable entry tax? 4. When stock transfer of finished goods from Municipality limit to Corporation limit or wise versa with in the state is liable entry tax? Regards Byrappa KG

[GIRISH K]

1) There is no entry tax for raw materials and consumables in Karnataka.  Only notified goods attract entry tax.

2) Entry Tax is attracted on entry of goods into the local area for use, consumption or sale therein.

3) Same as above.

4) If your finished goods are notified goods, you are liable to pay entry tax.

 

 

AI Summary

Entry tax liability on notified goods clarified; raw materials exempt but notified finished goods taxable on intra state local area entry. Entry tax applies only to goods expressly notified as taxable and to their entry into the local area for use, consumption or sale. Raw materials and consumables that are not notified are exempt. Trading goods and intra state stock transfers attract entry tax when the goods transferred are notified goods and they enter the local area; non notified raw materials or consumables moved between municipalities or between municipality and corporation limits are not subject to entry tax under this framework.