Advance Vat Tax will be new name for Entry Tax

    Governments across the globe, their main source of revenue are taxes. In India, Punjab state government had entry tax on the goods which were coming from outside Punjab as raw goods for production or prepared goods sending outside state for selling, and state was getting huge money in the exchequer through Entry Tax, but as per experts and concerned department in the current financial year that is 2011-12 there will be downfall of around twenty eight to thirty percent on to collections of Entry Tax simply due to challenge in the High Court by some traders, hence court issue stay order on to Entry Tax, but it is not easily absorb by state government and it is looking alternative ways in place of entry tax so that it cannot make dent on the revenue of state government and in this regards government officials were busy and have made mind to impose Advance Tax in place of Entry Tax by amending VAT before High Court announce its verdict on to stay order of Entry Tax.

       As per Excise and Taxation department of Punjab State during financial year 2010-11 department had collected 25.29 billion rupees as revenue from Entry Tax which will be around 18 to 19 billion rupees during current financial year, it is drop of around 30 percent and it is due to some traders challenge Entry Tax in the Punjab and Haryana High Court as there argue was that before the sale of goods it has not relevance of Entry Tax. Punjab and Haryana High court has ordered stay on Entry Tax, then department left with no other option but to stop collecting Entry Tax, on the goods either it was entering in the state as raw material goods from outside or prepared goods were being sent outside for sale. In this list plastics, poultry and electronics were major products, but state government still not ready to forget one of the major source of their revenue by waiving off fully Entry Tax, infect it has made mind to amend VAT by ending Entry Tax and in place of it Advance VAT Tax, before high court give its verdict on to Entry tax. Punjab Government has found alternative way to continue getting revenue from erstwhile Entry Tax, only name will change but the procedure will be same as was of Entry Tax like it will be collected onto barrier. State Government has issued ordinance, so soon it will be implemented in the state. Deputy Excise and Taxation Commissioner (VAT) Mr. Virk accepted that department is ready to implement Advance VAT Tax in the state, and soon it will be start in the state, further adding to it he said Advance VAT Tax will be on the pattern of Entry Tax, any goods enter into state from outside will be liable for Advance VAT Tax. So after getting relief from High Court for some period by traders on to Entry Tax they are going to face its new avatar as state government is fully prepared with effective alternative way and going to tightening the noose on to the revenue which was appearing high court has snatched from it.