West Bengal to impose entry tax on transfer of goods

West Bengal will impose an entry tax on stock transfers. But the taxpayer is eligible for deduction if the goods move further within three months. A State tax official explained this at a workshop on the West Bengal Tax on Entry of Goods into Local Areas Act, 2012, organised by Bharat Chamber of Commerce here on Saturday.

The stock transfer from outside the State and on way to another State would be taxable under the Act, said Mr Khalid Anwar, the State's Joint Commissioner of Commercial Taxes.

“West Bengal is a corridor for goods movements for many States. Goods come to this State, and after a stopover move to other destination. Dealers or importers have to make appropriate disclosure on the value of the goods and pay the tax on the ‘turnover of import'. The payment, however, can be “adjusted” against the next monthly disclosure-related payment,” Mr Anwar said.

The Act allows a self-disclosure-based levy (one per cent of the value) on all items, except for a list of agriculture items, including tea, raw jute and petroleum products.

“Entry” means movement within and from outside the State and overseas.

According to the official, the key factor that would dictate taxability of goods under the Act is either “sale or consumption or use” within the State.

If an “individual” brings goods from outside the State worth over Rs 25,000, he has to pay the tax. “But someone shifting from a place outside or the within the State and moving “personal belongings” has to make a declaration to avoid the levy,” the official explained.

The Act, already in place and effective from April 1, envisages pulling in of levied fund for specific spending on infrastructure such as roads and bridges.

>jayanta_mallick@thehindu.co.in

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