what the act says
As per Section 3 of Goa Tax on Entry of Goods Act, 2000, the State government levies a tax on entry of any goods in a local area for using the infrastructure and other facilities provided by the government. However, the Act defines a local area as municipal area, panchayat area, zilla panchayat, cantonment area or any other specified area
PANAJI
The Goa Chamber of Commerce & Industry (GCCI) has urged the State government to do away with entry tax on goods entering from one local area to another local area within the State of Goa.
Apart from this, GCCI made a number of other suggestions as well to lessen the burden of taxes on businesses in its pre-Budget memorandum to the State government.
As per Section 3 of Goa Tax on Entry of Goods Act, 2000, the State government levies a tax on entry of any goods in a local area for using the infrastructure and other facilities provided by the government. However, the Act defines a local area as municipal area, panchayat area, zilla panchayat, cantonment area or any other specified area.
If a company has manufacturing operations in two parts of Goa and is moving goods between these two parts, then it will result in double payment on account of entry tax just because goods are entering one part of Goa from another.
To take care of this, GCCI said that the State government should consider totally exempting from entry tax on transfer of goods from one local area to another within Goa by same firm for consumption, use or sale and this relief should be given retrospectively from 2005.
GCCI even appealed to the government to provide tax reliefs under certain schemes which it had provided earlier but withdrawn later. For instance, there was a Goa Value Added Tax Deferment Cum Net Present Value Scheme earlier which allowed people to pay 25% of value-added-tax (VAT)/ central sales tax (CST) and retain the remaining 75% to boost their profit margin.
GCCI requested the State government to grant the extension of this exemption for at least three years or till the implementation of goods-and-services-tax (GST).
Earlier, people could get a refund of excess VAT paid, but from June 2012, the excess input credit can only be carried forward and no refund is given. GCCI said that the government should give an option to people to either claim a refund or carry forward the extra tax paid.
