Punjab Government has levied entry tax on all motor vehicles purchased from outside the State of Punjab but brought into the local areas of Punjab for registration under Motor Vehicles Act, 1988.
The tax has been levied on all the persons except the Taxable persons registered under Punjab VAT Act, 2005 and who exclusively deal in sale and purchase of motor vehicles. Thus entry tax on automobiles will not be payable by the persons registered under Punjab VAT Act and exclusively dealing in sale, purchase of motor vehicles.
The rate of tax is the difference between the VAT payable on the motor vehicle under Punjab VAT Act, 2005 and the VAT or CST paid in other State from where the Motor Vehicle has been purchased.
It looks like the intention of the State is to levy entry tax on those persons (except the dealers of motor vehicles) who purchase the motor vehicle from outside the State of Punjab so as to pay lesser tax than which would have been payable in Punjab, had the vehicle been purchased from the State of Punjab.
Tax would have to be paid before submitting the documents of such vehicle for registration before the registering authority or within a period of one month from the date when such motor vehicle is brought into the local areas of Punjab, whichever is earlier.
However it should be noted that entry tax has been stayed by Punjab & Haryana High Court in Bhushan Power & Steel Ltd vs State of Punjab case so anybody who doesnot want to pay entry tax may apply for deferment from payment of entry tax.
Download the notification levying entry tax on automobiles at below link
Entry tax on automobiles
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The tax has been levied on all the persons except the Taxable persons registered under Punjab VAT Act, 2005 and who exclusively deal in sale and purchase of motor vehicles. Thus entry tax on automobiles will not be payable by the persons registered under Punjab VAT Act and exclusively dealing in sale, purchase of motor vehicles.
The rate of tax is the difference between the VAT payable on the motor vehicle under Punjab VAT Act, 2005 and the VAT or CST paid in other State from where the Motor Vehicle has been purchased.
It looks like the intention of the State is to levy entry tax on those persons (except the dealers of motor vehicles) who purchase the motor vehicle from outside the State of Punjab so as to pay lesser tax than which would have been payable in Punjab, had the vehicle been purchased from the State of Punjab.
Tax would have to be paid before submitting the documents of such vehicle for registration before the registering authority or within a period of one month from the date when such motor vehicle is brought into the local areas of Punjab, whichever is earlier.
However it should be noted that entry tax has been stayed by Punjab & Haryana High Court in Bhushan Power & Steel Ltd vs State of Punjab case so anybody who doesnot want to pay entry tax may apply for deferment from payment of entry tax.
Download the notification levying entry tax on automobiles at below link
Entry tax on automobiles
Share |
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