ROAD TRACTORS FOR SEMI- TRAILERS

Road tractors for semi-trailers attract Central Excise duty @ 16%, if engine capacity is more than 1800 CC. But a tractor used for agriculture purposes were exempted under chapter heading 8701 from excise duty in budget 2004-05 itself. A tractor primarily designed and meant for agriculture purposes can also be incidentally used to take goods to the nearest market. But that is an incidental
use, and such tractors are not primarily designed to haul trailers. Therefore, incidental use of hauling trailers will not put such tractors in dutiable category.