Entry tax in Karnataka

[Guest]

Whether karnataka entry tax is applicable for import of raw sugar  for export after converting into white sugar. pls advise 

[Anil Kumar]

Under Notification NO. FD 11 CET 2002(I), dated 30^th March, 2002, sugar is liable to entry tax at 1%.  However, if the sugar is brought in for the purposes of consumption or use as raw materials, component parts and inputs in the manufacture of an intermediate or finished product, no tax is payable. In this case since it is brought in as raw material, no entry tax under the Karnataka Entry tax is payable. 

AI Summary

Entry tax exemption for raw materials: imported raw sugar used as input for manufacture for export is not taxable. Applicability of entry tax to imported sugar depends on its use: although sugar is generally liable to entry tax under the notification, an exemption applies where goods are brought in for use as raw materials, component parts or inputs in manufacture. Imported raw sugar brought into the State as an input for conversion into white sugar for export qualifies as a manufacturing input and therefore is not subject to entry tax under the Karnataka entry tax notification.