Earthmovers exempted from entry tax

Earthmovers exempted from entry tax
HERALD REPORTER
PANJIM, SEPT 13
Goa Government has exempted earthmoving machinery from paying entry tax, ordering it does not fall under the definition of ‘Motor Vehicle’ category.
The order comes in response to a petition filed by Dattaram (Mahesh) Nayak from Margao against Shublaxmi Earthmovers at Panjim. The latter was accused of evading entry tax while purchasing a wheel loader and fraudulently registered with Regional TO Panjim.
“The commercial taxes department clarified if the machinery is purchased under ‘C form’ for the purpose of leasing it is liable to pay Value Added Tax on its lease rental. Therefore, it is not supposed to pay entry tax,” said an official.
The path-breaking order is a boom to business firms on purchasing such machineries. In the order, the department has precisely explained that earthmoving machinery such as dumpers, excavators, rollers, cranes, ambulifts, tractors and vehicles running on fixed rails or a vehicle of specially adapted for use only in factory or in any other enclosed premises, do not come under Goa Tax on Entry Goods Act, 2000.
“Therefore, no Entry Tax is required to be deposited by a purchaser of such machinery before registration with RTO as required for motor vehicles brought into state from outside,” the order copy by Assistant Commissioner of Taxes V S N Gaunekar read.
The firm run by Shubhangi Bhonsle, wife of a RTO deputy director Ashok Bhonsle was accused of circumventing the rules to evade entry tax. The commercial taxes department which had initiated proceedings has dropped the case against the firm.