Entry tax waiver comes with a rider

Following the directions of Punjab and Haryana High Court,the state's excise and taxation department has decided to exempt all those units from entry tax that will give an undertaking that they will be ready to pay entry tax with interest in case the writ petition gets dismissed.

Excise dept wants industrialists to give undertaking that they will pay up tax dues with interest if their case falls through

Following the directions of Punjab and Haryana High Court,the state’s excise and taxation department has decided to exempt all those units from entry tax that will give an undertaking that they will be ready to pay entry tax with interest (decided by court) in case the writ petition gets dismissed. Confirming the same,KBS Sidhu,Director of Punjab Excise and Taxation Department,said,The industrialists need to file this undertaking within four weeks and for this information,we will be issuing circulars to our district offices and even after seeking legal help may also issue a public notice in newspapers.

Sidhu said,We will be issuing these circulars following the written orders of court. He added,The court is silent on all those who will not give an undertaking. So we will seek directions for the same.

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Meanwhile,the industrialists are confused that entry tax has been abolished,as mentioned by Dinesh Lakra,President of Laghu Udyog Bharti,We feel happy that High Court has abolished the tax which is unconstitutional because VAT is already existing and moreover GST is also about to come in another year. Vinod Thaper,President of Knitwear Club,also expressed happiness over the abolition of entry tax on all the items.

Punjab collects a total revenue of Rs 2,400 crores from entry tax in a year. Four per cent entry tax has been imposed on 26 different items,such as marble,tiles,sugar,yarn etc. Sidhu said,This tax was imposed to check the tax evasion which the dealers,manufacturers do at various levels.

Meanwhile,Ludhiana based Bhushan Power and Steels Limited has filed a writ petition in High court against imposition of entry tax.

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Punjab and Haryana High Court

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