The Nagaland Entry Tax Act, 2013

The Nagaland Entry TaxAct, 2013 
(Act No. 7 of 2013) 
Received the assent of the Government of Nagaland on 25.7.2013 and 
published intheNagaland Gazette on 30"August 2013. 
To levy a tax on the entry of goods into any local area in Nagaland for 
consumption, use or sale therein for the purpose ofproviding the infiasbucture 
and amenities to facilitate trade and commerce within the State of Nagaland 
Preamble. Whereas it is expedient to provide for the imposition of a tax on the 
entry of goods into any local area inNagaland for consumption, use or sale therein 
for the purpose of providing the infrastructure and amenities to facilitate trade and 
commerce within the State ofNagaland and for matters connected therewith or 
incidental thereto; 
It is hereby enacted in the Sixty-third year of the Republic of India as follows:- 
Short title, extent and commencement. 
1. (1) This Bill may be called the Nagaland Enq Tax Bill, 201 3. 
(2) It extends to the whole ofNagaland. 
(3) It shall come into force on such date as the State Government may, by 
notification in the Official Gazette, appoint. 
Defmitions. 
2. (1) In this Bill, unless the context otherwise requires,- 
(a) "Assessing Authority" in relation to any importer means the authority 
competent to assess such importer; 
(b) "Entry of goods into a local area" with all its grammatical variations and 
cognate expressions, means, entry of goods as specified in the Schedule 
into a local area i?om any place outside that local area including a place 
outside the State for consumption, use or sale therein; 
(c) "Entry Tax" means a tax on the entry of goods into a local area for 
consumption, use or sale therein, levied and payable in accordance with the 
provisions ofthis Bii 
(d) "Fund" means theNagaland Trade Development Fund; 
(e) 'LImporter''means adealer or any other person, who inany capacity, whether 
on his own account or on account of aprincipal or any other person, effects 
or causes to be effected 
The enby of goods as specified in the Schedule into a local area or takes delivery 
or is entitled to take delivqof goods on its en@ into a local area for consumption, 
use or sale therein and includes,- 
(i) Every person who carries on the business of transfer of property in goods 
(whether as goods or in some other form) involved in the execution of a 
works contract, 
(ii) Every person who carries on business of transfer of the right to use any 
goods for any purpose (whether or not for a specified period) for cash, 
deferred payment or other valuable consideration. 
Explanation.- In case of any goods specified in the Schedule, which is transported 
through pipelines into a local area, the ultimate recipient of the goods in the local area 
shall be deemed to be the importer; 
(t) "Import value" means the value of goods specified in the Schedule as 
ascertained fromthe ori@ invoice andincludes the charges paidor payable 
for insurance, excise duly, kight charges and all other charges incidentally 
levied on the purchase of such goods; 
Provided that where the import value is not ascertainable on account of 
non-production or non- availability of original invoice, or where invoice 
produced is proved to be false, or if such goods have been procured or 
obtained otherwise than by way of purchase, the import value shall be 
determined on the basis of fair market value of such goods; 
(g) "Local area" means any area of the State within the limits of any local 
authority, by whatever name called, constituted or continuedunder an Act 
of the Parliament or the State Legislature 
(h) "Motor Vehicle"means a motor vehicle as defined in clause (28) of Section 
2 ofthe Motorvehicles Act, 1988 including motor cars, motor taxi cabs, 
motor cycles, motor cycle combiitions, motor scooters, motorette, motor 
omnibuses, motorvans, motor lomes and chassis of motor vehicles and 
bodies ortankers built or meant for mounting on chassis of motor vehicles, 
tractors, bulldozers, excavators, cranes, dumpers, three wheelers, road 
rollers and earthrnovers; 
(ij "Prescribed" means prescribed by rules made under this Bill; 
(i) " Schedule"means Schedule appended to this Bill; 
Q "Section"means a Section ofthis Bill; 
(I) "Specified Goods"means goods specified in the Schedule; 
(m) "State Government" means the Government ofNagaland. 
Nagaland Act No. 4 of 2005 P 
(2) All expressionsused but not dehed in this Bill and defined in theNagaland 
Value Added Tax Act, 2005 shall have the same meanings respectively 
assigned to them in that Act. 
Levy of tax. 
3. (1) Subject to the other provisions ofthis Bill, there shall be levied and 
collected an entry tax on the entry of specified goods into any local area 
for consumption, use or sale therein, at the rates respectively specified 
against each item in the Schedule. The entry tax shall be leviable on the 
import value of the specified goods and shall be paid by every importer of 
such goods. 
Provided that no entry tax shall be leviedunder this section on the entry of 
specified goods into a local area, if it is proved to the satisfaction of the 
assessing authority, in such manner as may be prescribed, that such goods 
have already been subjected to entry tax or that the entry tax or that the 
entry tax has been paid by the importer or any other personunder this Bill in 
respect ofthe same goods. 
Nagaland Act No. 4 of 2005 
(2) Notwithstanding anything contained in sub-section (I), and subject to 
production of documentary proof, no entry tax Shall be levied on such 
specified goods, which are also taxable under the Nagaland Value Added 
TaxAct, 2005,- 
Nagaland Act No. 4 of 2005 
(i) If such specified goods are brought into any local area by a dealer registered 
under theNagaland Value Added Tax Act, 2005 for the purpose of resale 
and such goods are sold inside the State and the dealer is liable to pay tax 
on the sales of such goods under the Nagaland Value Added Tax Act. 
2005: 
Central Act 74 of 1956. 
(ii) If such specified goods are sold in the course of inter-state trade or 
commerce or in the course of export out of the temtorv of Indiaor such 
goods are otherwise dispatched outside the State by way of stock transfer 
by aregistered dealerunder the Central Sales Tax Act. 1956: 
(ii lrsuch&c&ed goods are imported into a local area in the course of import 
from outside the temtorv of India: Provided that. if anvsuch dealer. after 
importing the specified goods, consumes such goods in any form or deals 
with such goods in any other manner, he shall inform the assessing authority 
-497- 
before the 21d day of the month, succeedingthe month inwhich such goods 
are so consumed or dealt with and pay the provisions ofthisBill. 
Nagaland Act No. 4 of 2005 
(3) Where the specified goods, the sales of which are exempted under the 
Nagaland Value Added Tax Act, 2005 for reasons of such goods being 
included in the First Schedule to the said Act, which after entry into a local 
area are sold by an importer in the course. 
Of inter-state trade or commerce or in the course of export out of the 
territory of India or are dispatched outside the State by way of stock 
transfer, the import value of such specified goods subsequently sold or 
sent out in the manner mentioned above shall, subject to production of 
proof, be deducted from the total import value to determine the taxable 
import value. 
(4) The State Government may, by notification in the Official Gawtte, in the 
public interest ortaking into account the inhshucture and amenities provided 
or to be provided to facilitate trade and commerce, vary the rates of tax of 
the specked goods and on suchnotification beii issued, the Schedule shall 
be deemed to have been amended accordingly: 
Provided that the rate of tax to be specified or varied by the State 
Government in respect of any such goods shall not exceed twenty per 
centum. 
Levy of tax on 
4 (1) Notwithstanding anything contained in section 3, there shall motor vehicle 
be levied and collected atax on the entry of any motor vehicle into a local 
area for use or sale therein by an importer which is liable for registration or 
assignment of anew registration markin the State under the Motor Vehicles 
Act, 1988. 
(2) The tax shall be payable and paid by an importerwithin 30 days &om the 
date of the enby of amotor vehicle into the local area or before anapplication 
is made for registration of thevehicle under the Motor Vehicles Act, 1988, 
whichever is earlier. 
(3) No tax shall be levied and collected in respect of a motor vehicle which is 
registered inany Union Tenitory or any other State underthe Motor Vehicles 
Act, 1988, fifteen months prior to the date on which anew registration 
mark is assigned in the State under the said Act. 
(4) where any person causes entry of amotor vehicle into alocal area within a 
oeriod of fifteenmonths from the date of registration of suchvehicle in any - - 
UnionTerritorv or any other State under the Motor Vehicles Act, 1988, 
and that such entry is occasioned as aresult of shifting of the place of his 
residence ftomsuchUnionTenitolvor State into this State, the Commissioner 
may exempt such person ftom payment of entry tax on entry of such motor 
vehicle subject to production of proof m this regard. 
(5) Notwithstanding anythmg contained in any other law for the time being in 
force, where the liability to pay tax in respect of a motor vehicle arises 
under this Bill and such motor vehicle is required to be registered or a new 
registrationmark is required to be assignedto it in the State under the Motor 
Vehicles Act, 1988, no Registering Authority shall either register any such 
motor vehicle or assign any new registration mark to such motor vehicle 
unless 
Payment of such tax has been made by the person concerned in respect of 
such vehicle. 
Composition of tax Liability 
5 Notwithstanding anythmg contained in this Bd1, the State Government may, by 
notification published in the Official Gazette and subject to such conhtions and 
restrictions, if any, as may be specified therein, permit any class of lmporter to 
pay m lieu ofthe tax payable under this Bill, for any period, an amount linked \nth 
the volume orquantity of specified goods or some such otherthingto be detemed 
by the State composition and to be paid at such inte~als and in such manner, as 
may be specified in suchnotification. 
Exemption from tax 
6. (1) Notwithstanding anything contained in section 3, no entry 
tax on the entry of specified goods into a local area shall be payable, if such 
specified goods are- 
(a) Meant for the exclusive use or consumption of the Defence Department of 
the Government of India, or 
(b) The exclusive property ofthe Union Government, - - 
(2) The State Government may, by notification in the Official Gazette, grant 
exemption to any oretion or undertaking ofthe Central Government or - 
of the State Government, retrospectively or prospectively, in respect of 
such goods as may be specified in such notification, kom payment of entry 
tax on entry of such goods into any local area for consumption or use therein 
provided that suchgoods are the exclusive property of suchorganization or 
undertalang. 
(3) The State Government, if considers it necessary in the public interest so to 
do, may by notification in the Official Gazette, subject to such conditions 
and restrictions as it may impose, exempt, any importer or class of importers, 
fully or partially fiom payment of entry tax on any specified goods and the 
State Government may also grant such exemption retrospectively: 
Provided that the State Government may withdraw any such exemption at 
any time, as it may think fit and proper. 
Principles governing entry tax 
7. The entry tax payable by an importer shall be levied in accordance with the 
principles as stated below:- 
(a) Entry tax shall not be payable unless the importer effcts entry of the specified 
goods into a local area; 
(b) Where any such goods are consumed, used or sold in a local area by the 
importer, it shall be presumed until the contrary is proved by him, that 
such goods had entered into that local area for consumption, use or sale 
therein. 
Registration, Return, Assessment, Collection etc. Of entry tax. 
Nagaland Act No.4 Of 2005. 
8. Subject to the provisions of the Bill and the rules made thereunder, the administmtion 
ofthis Bill in so far as it relates to registration, submissionofreturns by the importen 
and collection on entry tax &om them, shall vest in the authorities specified in or 
under the Nagaland Value Added Tax Acf 2005 and accordingly,the said authorities, 
empowered to register, received returns, to assess or re-assess and collect tax and 
enfo~e payment of any tax under the said Act, shall register, received retums, assess, 
re-assess and collect entry tax and enforce payment of entry tax, includmg imposition 
and reahtionof any penalty payable by an importer underthis Bill as if the tax or 
penalty payable by such importer under this Bill is atax or penalty payable under the 
said Act and for this purpose they may exercise all or any of the powers conferred 
uponthem by or under that Act. 
Applicability of The provisions of The Nagaland Value Added Tax Act, 2005 
Nagaland Act No.4 Of 2005. 
9. Subject to the provisions ofthis Bill and rules made thereunder,sections 20,2 1, 
24, 25,26, 27, 28, 29, 30, 31, 34, 35, 36, 37, 38, 39,40,41,42,43, 46,47, 
78,50,51,52,54,56,57,58,59,60,61,62,63,64,66,67,68,69,70,71,72,73, 
74, 75, 76, 77,78,79,80,81,82,83,84,85,86,8f 88, 89, 90, 91, 92, 93, 94, 
95,97,98, and 99 of the Nagaland Value Added Tax Act, 2005 and the rules 
thereunder, orders, notifications issued thereunder shall mutatis mutandis apply 
to an importer in respect of entry tax levied and payable under this Bill, as if 
those sections were mutatis mutandis incorporated in this Bill and the rules 
bed and order and notification issued under those sections were mutatis 
mutandis issued under the relevant sections so incorporated under this Bill. 
Utilization of the Proceeds of the Levy under the Act. 
10. (1) The proceeds of the entry tax minus cost of collection, shall be credited and 
appropriated to the Fund constituted under this section by notification in the 
Official Gazette and shall be utilized exclusively for the development of 
in&astructures or amenities to facilitate trade, commerce and intercourse 
and it shall include the followuy:- 
(a) Construction, development andmaintenance of roads and brides for linlung 
the market and commercial areas to their hinterlands, 
(b) Creation, development and maintenance of infrastructure for supply of 
electrical energy, water supply and sanitation and other infrastructure for 
furtherance to trade, commerce and intercourse, 
(c) Any otherpurpose connected with the development of trade and commerce 
or for facilities relating thereto whichthe State Government may specify by 
notification, 
(d) Providing finance, aids, grantsand subsidies to local bodies and government 
agencies for the purposes specified in clauses (a), (b) and (c). 
(2) The amount realized as entry tax shall not be used for the purposes other 
than those specified in sub-section (I), 
(3) The tax under this Act shall be continued to'be levied till such time as is 
required to improve the infrastructure or amenities to facilitate trade and 
commerce. 
Power of Government to make rules. 
11 (1) The State Government may, subject to the condition of previous publication, 
make rules for ca.g out the purposes of this Bill: 
Provided that ifthe State Government is satisfied that circumstances exits 
whichrender it necessary for it to take immediate action, if any, it may make 
any rules without such previous publication: 
Provided fuaher that any rule under this Bill may be made so as to have the 
retrospective effect. 
(2) In particular and without prejudice to the generality of the foregoing power, 
such rules may provide for,- 
(a) The Manner and procedure of deposit of tax under appropriate Head of 
Accounts and the manner in which the proceeds of the tax shall be utilized; 
(b) Allmatters expressly required or allowed by this Bill to be prescribed; 
(c) The fees to be paid in connection with the registration, memorandum of 
appeals, petition for revision, certified copies of orders. petitions, other 
matters and any other matter ancillary or incidental thereto; and. 
(d) Any other matter for which there is no provision or no sufficient provision 
in this Bill and for which provision is, in the opinion of the State 
Government, necessary for giving effect to the purposes of this Bill. 
(3) In making any rules under this section, the State Government may direct 
that a breach thereof shall be punishable with fine not exceeding five 
thousand rupees and, when the offence is a continuing one, with a daily 
fine not exceeding one hundred rupees during the continuance of such 
offence. 
(4) The State Government shall cause every rule made under this Bill and 
every notification issued under this Bill to be laid, as soon as may be, after 
it is published before the State Lepislature wlule it is in session for a total - 
period ofthirt? (la! .; \i hich ma? 11c crorr~prisxl ill or~c session or in two or 
~i~t~rc. successiv~. s~,ssions in .xhich it is so laid c~rtl~c sessions immedi;t~el!, 
Ii~llc)\ving, and il't11~ State I .egislaturc.~igrr.c~ in nlahing any 111odi!i~atin11 ill 
the rule or notiticciticjn or !h31 tile r~le fir nn!ilic3lion should 1101 Ix. 
Made, the rule or notification shall thereafter have effect only in such 
modified form or be of no effect, as the case may be; however, any such 
modification or annulment shall be without prejudice to the validity of 
anything previously done under that rule or notification. 
SCHEDULE 
[See clause (j) and (1) of Section21 
Players, VCD Player, DVD Players, Video 
or Siken, including Rayon,& Sill< and 
Nagaland for distribution in any relief operation 
or for use in connection with any Scheme sponsored by 
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29. 
30. 
31. 
32. 
33. 
34. 
35. 
Chemicals. 
Dispensers. 
Coal. 
Declared Goods 
Under the Central Sales Tax Act, 1956 (Central 
Act 74 of 1956) which are not mentioned in any 
of the entries. 
Other goods not covered by any of the entries 
above, but included in the Schedules of taxable 
goods attached to theNagalandValue Added Tax 
Act, 2005:- 
(a) Pipes of all kinds excluding those covered 
by entries at serial numbers 35 and 39. 
(b) Clinker 
(c) Cranes, Dumpers, Road Rollers, Motor 
Cycles, Motor Cycle combinations, Motor 
Scooters, Three Wheelers and Motorettes. 
(d) Caustic Soda, 
(e) Sodium Silicate. 
0 Ahm 
(g) Soap Stone Powder. 
(h) Furniture and Fitures. 
(i) Coir, Coir products and Coir waste. 
(j) Transformers. 
(k) Hardware goods. 
(l) Cormgated and plain galvanized iron sheet 
(whether hot rolled or cold rolled). 
(m) Arecanut Powder and Supari in all forms and 
varieties including Betenut for conversion into 
supari 
(n) Plywood. 
(0) Bentonite Powder 
@) Railway Track materials such as all types of pre- 
stressed Concrete Sleepers, Railway Switches, 
Crossing, Fitting, SGCI inserts, HTS Wire, Metal 
Liners, Bolts andNuts and Elastic Rail Clips 
Lime Stone and Lime Powder. 
Bauxite. 

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