A is a registered dealer under UP Vat Act. During any F.Y. his gross UP purchases are Rs. 10,00,000/- and out of Rs. 10,00,0000/- he purchsed goods of Rs. 7,00,000/- from within the local area and purchased goods of Rs. 3,00,000/- from outside the local area. Now my question is whether he would be liable to pay entry tax on Rs. 3,00,000/- by treating that his gross purchses are Rs. 10,00,000/- or he would get exemption as per Sec. 4(5) of UP. Entry tax act according to which if any dealear's aggregate purchases from outside the local area is less than Rs. 5,00,000/- he would not be liable to entry tax and in the present case A has purchsed goods of Rs. 3,00,000/- only from outside the local area. Please give if any circular or direction is there and oblige.