The Hindu Business Line : Directive on agricultural tractors

The Finance Ministry has made it clear that the incidental use of hauling trailers would not put agricultural tractors in dutiable category for excise duty purposes. The Central Board of Excise and Customs (CBEC) has said in a circular that the "primary use" of the tractor should be the deciding factor for applicability of excise duty. This clarification would cancel out certain field formations' efforts to charge excise duty on agricultural tractors on the ground that besides agricultural work, these tractors are used for haulage of farm products, fertilisers etc and therefore qualify as "road tractors for semi-trailers". Currently, "road tractors for semi-trailers" attract 16 per cent excise duty if the engine capacity is more than 1800 cc. In Budget 2004-05, the Government had exempted agricultural tractors (falling under Chapter heading 8701) from excise duty with a view to encouraging the farm sector. "A tractor primarily designed and meant for agriculture purposes can also be incidentally used to take goods to the nearest market. But that is an incidental use and such tractors are not primarily designed to haul trailers," the CBEC has said.

More Stories on : Excise and Customs | HCV/LCV/Tractors | Agricultural Policy

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Ombudsperson likely for pvt sector quota

Farm production may not meet demand

Directive on agricultural tractors

`India, US making efforts to settle tariffs issue'

Afghanistan to simplify visa regime

Independent regulator proposed for BPO sector

Quotas in pvt housing projects mooted

`Remove curbs on traditional Indian medicines'