Exemption from Payment of Entry Tax to the Taipei Economic and Cultural Centre in Chennai under the Tamil Nadu Tax on Entry of Motor Vehicles into Local Areas Act
The Commercial Taxes and Registration Department of the Government of Tamil Nadu issued G.O. Ms. No. 26, Commercial Taxes and Registration (C2), dated 28 February 2014, exempting importers from the whole entry tax payable on cars and two-wheelers brought into a local area for sale to the Taipei Economic and Cultural Centre in Chennai and its home-based officials in Tamil Nadu. The exemption applies to vehicles for their official and personal use under reciprocal arrangements with India and took effect on 28 February 2014.
What the notification does
The Commercial Taxes and Registration Department issued G.O. Ms. No. 26, Commercial Taxes and Registration (C2), dated 28 February 2014, under the Tamil Nadu Tax on Entry of Motor Vehicles into Local Areas Act, 1990. Acting in the public interest, the Governor of Tamil Nadu granted a complete exemption from the entry tax otherwise payable under that Act for specified vehicle sales.
The exemption covers:
- Cars and two-wheelers entering any local area for sale.
- Sales to the Taipei Economic and Cultural Centre in Chennai.
- Sales to the Centre's home-based officials in Tamil Nadu.
- Vehicles intended for the official or personal use of the Centre and those officials.
- Transactions covered by reciprocal arrangements with India.
Who is affected
G.O. Ms. No. 26 directly affects an importer who would otherwise have to pay entry tax when cars or two-wheelers enter a local area for sale to the Taipei Economic and Cultural Centre in Chennai or its eligible home-based officials.
The notification does not state that the exemption is available to the general public, ordinary vehicle buyers or all officials. Eligibility depends on the buyer being the Taipei Economic and Cultural Centre in Chennai or one of its home-based officials in Tamil Nadu, and on the vehicle being for official or personal use under the stated reciprocal arrangements.
Key practical points
- The relief is an exemption from the whole of the entry tax payable under the Tamil Nadu Tax on Entry of Motor Vehicles into Local Areas Act, 1990.
- The exemption is tied to the entry of cars and two-wheelers into a local area for sale to the specified Centre or officials.
- Both official use and personal use are included, subject to the reciprocal arrangements with India.
- The notification came into force on 28 February 2014.
- The Gazette notification number is No. II(2)/CTR/238(f)/2014.
A buyer or importer relying on the exemption should check that the purchaser, vehicle type, intended use and reciprocal arrangement all match the categories stated in the notification.
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Common questions
Does this entry tax exemption apply to an ordinary car or two-wheeler buyer in Tamil Nadu?
No general exemption for ordinary buyers is stated. It applies to vehicles entering a local area for sale to the Taipei Economic and Cultural Centre in Chennai or its home-based officials in Tamil Nadu under reciprocal arrangements with India.
Which vehicles are covered by the exemption?
The notification covers cars and two-wheelers brought into a local area for sale to the specified Centre or its eligible home-based officials.
Does the exemption cover the full entry tax?
Yes. G.O. Ms. No. 26 exempts the importer from payment of the whole tax payable under the Tamil Nadu Tax on Entry of Motor Vehicles into Local Areas Act, 1990, for qualifying transactions.
When did the exemption begin?
The exemption came into force on 28 February 2014.
