Financial Daily from THE HINDU group of publications
Tuesday, Oct 05, 2004
Financial Daily from THE HINDU group of publications Tuesday, Oct 05, 2004 |
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Industry & Economy
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Taxation Karnataka: GMCI plea to review scope of special entry tax Our Bureau
Bangalore , Oct. 4 THE Greater Mysore Chamber of Industry (GMCI) has urged the State Government to reconsider the decision to enlarge the scope of the special entry tax as it would affect the business severely. The new levy came into force from October 1 and it will cover 23 commodities, against a few in the old dispensation. The special tax under the Karnataka Tax on Entry of Goods Act, 1979, was levied at the rate of 1-5 per cent with a special rate of 13.8 per cent for motor vehicles. However, the new decision would not only be covering more goods but the rate also has been fixed at a higher range between 5 and 20. The cumulative impact of the taxes on the goods would work out to 28 per cent GMCI said. The Act seeks to levy entry tax on goods brought into Karnataka at par with sales tax rate on 23 commodities, most of which are goods or regular use by trade and industry, said Mr S. Chandrasekhar, President of GMCI. He said among the items which would attract the new levy are building materials, petroleum products, electrical and electronic goods, earthmovers, furniture, DG sets, lifts, elevators and computers. The Act does not provide any exemption on industrial inputs used in manufacturing works contract or leasing, he said. "Although the set off entry tax paid is permitted on local sales of traded goods, it appears that no set off could be claimed on inter-State sales, which will leave the industry high and dry," Mr Chandrasekhar lamented.
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