Courier Companies for E-Commerce

Compliances for Courier/Transport Co. bringing goods purchased through e-commerce companies

Effective from 01/10/2016 in Madhya Pradesh

Ref. Noti. No. 41, 42, 43 (2016) dated 28/09/2016 published in Madhya Pradesh Gazette

Summary of new Compliances:

Entry Tax @ 6% shall be payable on all goods specified in Sch-II of the Entry Tax Act except motor vehicles.

-Courier Companies/Transporter bringing such goods shall be liable for payment of entry tax and related compliances.

Steps for Compliance:

A. Initial Compliance:

  1. Online application for Enrolment in Form-XVI
  2. Issue of Certificate of Enrolment in Form XVII
  3. Fixation of security (In cash/ Fixed Deposit) – Shall be equal to 1 month tax liability (to be revised regularly)

B. Regular Compliance

  1. Download statement in Form XVIII before effecting entry of goods in Madhya Pradesh from Form XVIII shall accompany the goods at the time of entry in Madhya Pradesh and later.
  2. Collection of entry tax @ 6% from the buyer of goods at time of delivery.
  3. Payment of tax to Government within 3 days of end of week (Monday to Sunday)
  4. Download Form XIX for goods to be sent out of MP due to return/rejection by customer. Form XIX shall accompany goods which are being sent out as returned goods.
  5. Entry tax shall not be payable if goods are returned within within 30 days. Tax if already paid shall be refundable.
  6. Filing of monthly return in Form XX within 7 days of each month. Where period of a week is spead over two calendar months, details shall be included in the calendar month in which payment of entry tax is made.

C. Late Payment Interest

  1. @ 1.5% per month for first 3 months
  2. @ 2% per month for excess period above 3 months.

Related notification: Noti No 41, 42, 43 (2016)