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:
- Online application for Enrolment in Form-XVI
- Issue of Certificate of Enrolment in Form XVII
- Fixation of security (In cash/ Fixed Deposit) – Shall be equal to 1 month tax liability (to be revised regularly)
B. Regular Compliance
- Download statement in Form XVIII before effecting entry of goods in Madhya Pradesh from http://mptax.mp.gov.in. Form XVIII shall accompany the goods at the time of entry in Madhya Pradesh and later.
- Collection of entry tax @ 6% from the buyer of goods at time of delivery.
- Payment of tax to Government within 3 days of end of week (Monday to Sunday)
- 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.
- Entry tax shall not be payable if goods are returned within within 30 days. Tax if already paid shall be refundable.
- 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
- @ 1.5% per month for first 3 months
- @ 2% per month for excess period above 3 months.
Related notification: Noti No 41, 42, 43 (2016)