The above Act is operative from 30-9-1987. The purpose of this Act is to levy entry tax on motor vehicles, which are purchased from a place situated out of Maharashtra State, but are used in Maharashtra. The Act applies to those vehicles, which are liable for registration in Maharashtra under Motor Vehicles Act. However if the vehicle is registered outside the State for more than 30 months, before bringing in Maharashtra State, then the Act is not applicable. Similarly if the vehicle is imported from outside India then also the Act is not applicable. The rate of entry tax at present is 4% on Tractors specifically designed for agricultural use and 12.5% on other Motor Vehicles. The tax is payable on purchase price of vehicle including the amount of excise and countervailing duty. The local tax paid in respective purchasing State or C.S.T is allowed as set off from the liability to entry tax.

The return is to be filed and the tax is to be paid within 15 days from the date of entry of the motor vehicle in the local area or before the application for registration under Motor Vehicles Act is made, whichever is earlier.