Facebook Twitter Linked-in

Entry Tax Implication in Rajasthan Budget 2014

Posted by on Jul 28, 2014 in Blog | Comments Off on Entry Tax Implication in Rajasthan Budget 2014

We take reference to the budget announced by Govt. of  Rajasthan on 14th July 2014. ENTRY TAX RATES HAVE BEEN MODIFIED ON THIS BUDGET AS PER RULE S.O. 54 as follows –

  S.no.   Items   Rate
  19   All kinds of electrical and electronic goods including electric motor, fax machine,   Sim Card, Smart Card, Radio set, VCR, VCP, Rate Recorder, accessories   thereof   14%
  21   Aluminium structures, steel fabrication items including GS Stay Sets,Switch Fuse   Units and Isolators   14%
  29   Transformer and Transformer Oil   5%

Entry tax provision has serious implications for Turnkey contractors :
1.  The entry tax is  NOT to be paid at Rajasthan Border Check post.
2.  The Contractor is required to get Registration done with Commercial taxes department for entry tax payment and filing of Returns.
3.  Returns are required to be submitted monthly / quarterly.
4.  Interest shall be leviable on delayed payment of entry tax.
5.  Non submission of returns / non-payment of entry tax will attract heavy penalties and punitive measures.
6.  In case the amount involved, inclusive of penalty, crosses Rs. 50 lacs, then it becomes a non-bailable offence.
7.  Amount of entry tax deposited cannot be offset against VAT payable to Government.
8.  Against older contracts, the Purchaser generally allows statutory variation to be borne by the Purchaser themselves.  However, caution is advised, because the implication is very high, at 14%, and the Purchaser will be reluctant to accept the enhanced liability in several cases, even where they have already approved out of State vendor.

We request you to kindly factor in the above for your on-going and future contracts  in Rajasthan.