Tuesday, April 30, 2013

LBT office in Thane

I got a few questions as "Where is the LBT office?", "LBT office in Thane?"

So Decided to post the exact address here on the blog itself instead of replying to each and every one.

Address : LBT office, Oswal Park, Pokharan Road No. 2, Thane West, Maharashtra.

(Click on Image to view Full Size)

The Map given Below:

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Wednesday, April 24, 2013

Online Registration Procedure

Thane Municipal Corporation has set up a new Website for LBT registration 
>> tmc.mahalbt.com/ <<

Below is the procedure with all screenshots for online LBT Registration.
Once you complete this registration process, you can perform all the transactions related to LBT online. This procedure will get you LBT No is couple of minutes instead of Physical Registration.

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Error - "Already Applied please login with your User ID"

When Applyiong for the registration of LBT you may recieve this message
>> Already Applied please login with your User ID and password <<

below is the Screenshot of the same.

If you get this error then
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Saturday, April 20, 2013

LBT on outside area purchases

Question :

Will I be liable to pay LBT on goods purchased from outside the LBT area (i.e Thane) but goods have not entered the LBT Area?
Example - I purchased goods from say Shahapur (Which is not in LBT Area) and my office is located in Thane (Which is in LBT Area) but goods are not entering thane, they are directly sent to say Bangalore (Which is again not a LBT Area). So, Will I be liable to pay LBT?

Simple Answer
No, Not required to pay
(But this is debatable)

Details and Explanation :
There are two views on this question.

My View - 
As LBT is payable on goods imported in Thane, so if no goods imported then no need to pay. Even if department takes a contradictory view and says these are taxable then it is out of purview of taxation.
The onus of proving the goods did not entered thane will be on assessee and so I would recommend that all proper records are kept there are delivery chalans and address of buyer to whom you are sending these goods.

Other View -
Read more ...

Cancellation of Certificate of Registration

As per Rule 17 of LBT Rules 2010 Commissioner can suo moto or after receiving application from the assesses cancel the registration certificate.

Below is the bare wordings of Rule 17.

Cancellation of Certificate of Registration.-

(1) Where,-
(a) any business, including that of a dealer  who is deemed to be registered under sub-rule (3) of rule 9 of these rules, in respect of which a certificate of registration has been issued under these rules, has been discontinued, or has been transferred or otherwise disposed of, or
(b) neither  the turnover of sales nor the turnover of purchases of a registered dealer, including a dealer who is deemed to be registered under sub-rule (3) of rule 9, has, during any year exceeded the relevant limit prescribed by these rules, then, the dealer shall apply in the prescribed manner, for cancellation of his certificate of registration and the Commissioner shall, after holding such inquiry as he deems fit, cancel the certificate of registration with effect from such date as he may fix in accordance with these rules.

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Present status of LBT in Thane - News

A Bandh has been called by TSSIA (Thane Small Scale Industries Association) and traders association on 22nd April, 2013.

And a Rally at 9 am from Gaondevi Maidan to TMC

Lbt Thane News
This is the email sent to all memebers of the TSSIA
(Click on Image to view full size)
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Friday, April 19, 2013

All Forms for LBT

The following are the forms issued by Department under Rules of LBT.

AApplication for Registration
BCertificate of Registration
CApplication for Cancellation of Certificate
DRegister of Goods
E-1Form for Half Yearly Return
E-2Form of Annual Return
FIntimation of Nomination
IOrder of Assessment
JNotice of Demand
KNotice for Assessment
LNotice for Payment of LBT, Interest, Penalty
MRefund Payment Order
ONotice for Forfeiture and Imposing Penalty
PNotice for Rectification of Mistake
QAuthorization for Appearance before Authority
RPermission for Lump Sum Payment of LBT
SAppeal against demand notice

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Wednesday, April 17, 2013

Checking on Octroi Naka

If you are one of the persons who used to get irritated by the checking ad long lines at Octroi, then you will definitely like new rules of LBT. Read on to know more. 

Is there any checking by authority over check post or flying squad?

Simple Answer:
No, No checking at Naka

Details and Explanation:
Read more ...

Copy Paste

It has come to my notice that some of the visitors of this site are distributing the content of this site claiming as their own.

Please come on.. Have some Courtesy.

I don't have any objection in you using the contents of this website in your mail, article, or even your book. But show some professionalism and mention your source of information as this website URL "LBTthane.blogspot.com".

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Default rate ?

What is the rate of my goods which I Import, if there is no rate specified i the Schedule of Rates?

Simple Answer:
5% on Bill Amount.

Details and Explanation:
The schedule of Rates is divided into 2 schedules "A" and "B"
Schedule B provides with goods which are exempt from LBT. Schedule A are those goods which does not fall in Schedule B which are further divided into 4 groups.
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Tuesday, April 16, 2013

Thane City

Since the LBT will be payable only if goods purchased enters Thane region, it is important to define what is thane region for the purpose of LBT. Since the region for Octroi will continue for LBT too, department has not come up with any definition for Thane.

Below is the map of Thane as per TMC

Thane For the purpose of LBT
 Click on Image for full size.

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Monday, April 15, 2013

Payment of LBT

The question:
How trader/dealer pay the LBT to authority - Is it Monthly self filing & payments?

Simple answer
Monthly, 10th of next month

Details and Explanation
As per Rules, payment is to be made on 10th of the next month. So for the month of April, payment date is 10th May. Unlike Octroi, the payment has to be made on the basis of bill date and not when goods entered the city. So if bill of goods you purchased from outside city has bill date of 25th April then irrespective of the fact that goods come in city in April or May, payment will have to be done on 10th May.
This gives rise to another question as to what if after payment of LBT, goods does not come to city?
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Penalties Explained

Here is the tabulated form of penalties (All the penalties of LBT Rules 2010 Covered)

Sr NoOffenceMaximum Penalty
1Not issuing BillDouble of LBT
2Not applied for RgistrationTen times of LBT
3Failed to comply with any noticeRs 10,000
4Failed to disclose any entry of goodsFive Times of LBT
5Claimed inaccurate refundFive Times of LBT
6Wrong Issue of Bill - First TimeDouble of LBT
7Wrong Issue of Bill - SubsequentFive Times of LBT
8Wrong Declaration or CertificateFive Times of LBT
9Non Filling of ReturnRs 5,000
10Contravenes provisions of section 152GRs 100 or Bill amt (higher)
11fails to maintain accountsRs 5,000 or 2 times LBT (lower)

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Lump sum Payment - Explained

Similar to what we have compostion scheme in VAT or Service tax, we have "Lump Sum Payment Scheme"

Also see : Bare provisions of the LBT Rule 27

Before reading the explanation below, let me clarify the recent notification. As per the Rule 27, this scheme is applicable only for those dealers who's total purchases during the year is less than 5,00,000 but there is a new notification/ circular by TMC to increase it to 10,00,000. I have not yet received the copy of the circular, but have heard it from reputable sources the contents of Circular. I am explaining this Scheme with reference to new circular.

As per new circular new LBT slabs are as below

Slab NoTurnover of all purchasesLBT Payable
1Up to Rs. 1,00,000/-Nil
21,00,001 to 2,00,0004,000/-
32,00,001 to 5,00,00010,000/-
45,00,001 to 10,00,00020,000/-

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Lump sum Payment of Local Body Tax

There is a Lump Sum payment scheme in LBT Rules similar to what we have composition scheme in Service Tax.

This is governed by Rule 27. Below are the bare wordings of the provisions of the rule.

See also : Lump Sum payment explained

Lump  sum Payment of Local Body Tax.-
(1) Subject  to the provisions of this rule, if a registered dealer whose turnover  of all purchases during  a year, is less than  rupees five lakhs opts for the payment  of a lump sum amount of local body tax as specified in the table below he shall furnish  a declaration  in Form R prescribed under  this rule. On a declaration  in form R being furnished by him, the Commissioner shall, on being satisfied  that  the slab from the table specified below, as opted for by the applicant  dealer  is correct, grant  him permission to pay a lump sum  amount  of local body tax in accordance with  the table specified below, for such period and by such date,  as he may specify in his order granting such permission  and the dealer shall pay such lump sum amount of local body tax within fifteen days from the date of receipt by him, of such an order:

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Sunday, April 14, 2013

Lump Sum Payment - New Circular/ Notification

The LBT Rule 27 provides with table for payment of LBT on lump sum basis. But recently TMC has issued a new notification/ circular changing the slabs for payment. I have not yet received the copy of the circular, but have heard it from reputable sources the contents of Circular. If anyone has a copy of the circular or a photo please contact me or leave a comment below.

BEFORE Circular

Slab NoTurnover of all purchasesLBT Payable
1Up to Rs. 1,00,000/-Nil
21,00,001 to 2,00,0002,000/-
32,00,001 to 3,00,0003,000/-
43,00,001 to 4,00,0004,000/-
54,00,001 to 5,00,0005,000/-

Read more ...

Friday, April 12, 2013

Present status of LBT in Thane (News)

Read this only if u are reading this before 20th April, 2013

Update : See this new post for after 20th April, 2013

Some of the visitors of this blog asked what is the current status of LBT in thane?

Currently TSSIA (Thane Small Scale Industries Association), Thane Retailers Association along with thane plywood committee are fighting with govt officials for Uniform Tax Rates.
The other demands include
> lower penalties 
> overall reduction in LBT Rates

They have hence directed their respective members not to register for LBT till their demands are full-filled. They have also requested Chartered Accountants to wait till 15th April, 2013 to get their clients registered in order to create pressure on Municipality.

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Rule 48 : Penalties

Below are the exact wordings of Rule 48

Dowlnoad Rule 48 of LBT Rules,2010 (in TXT file)

Imposition of penalty and interest in certain cases

(1) If the selling dealer referred  to in section 152G, fails to issue  to the purchasing dealer  a bill, invoice or cash memo, as required,  the Commissioner may, after  giving the selling dealer  a reasonable  opportunity of being heard,  impose upon him by way of penalty, a sum not exceeding double the amount of that  would have been payable if the goods sold had been imported by the selling dealer in the City, for consumption,  use or sale therein.

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Meaning of "Appointed day"

If you are reading rules of LBT, 2010 you will come across many places the word "Appointed day".

So, what does it mean

In simple terms its 1st of April, 2013 

Now some explanation of the above answer, before that you need to know what the LBT Rule says about it

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Thursday, April 11, 2013

For Consumers

In This post I am going to explain about whether a consumer like you and me are required to pay LBT?

LBT is unquestionably payable by a Trader, Manufacturer, Retailer, Dealer. Agent if they import (Purchase) any goods from outside district of thane.

The question is important because the LBT Rules says a person has to get registered if purchase of goods (from outside Thane) exceeds 5000 Rs in a year. So, each and every one may get covered because the limit is so low

When I am talking about consumer I am talking about
  • A employee who has nothing to do with any VAT or Service tax in any way, eg. Teacher.
  • A Small service provider who provides service but since total service does not exceeds 10,00,000 Rs is not registered for Service Tax, eg. Tailor
  • A person bringing Washing Machine or say Television from Mumbai or any place outside Thane
So, will the above person be liable for LBT?
Will they have to pay LBT?
Read more ...

Wednesday, April 10, 2013

LBT for Jewellers

Here is the gist of LBT rules and rates which are applicable for jewelers (Retail as well as Wholesale).

First of all let me talk about rates.

Sr NoCommodityRate
1Jewellery made up of gold, silver, diamonds, any precious stone0.50%
2Bars , coins of Gold, Platinium, Rhodium0.10%
3Bars , coins of Silver0.50%
4Loose - Diamonds, Presious Stones, Pearls0.10%
5Imitation Jewellery2%
6Jewellery made up of other metals than gold , silver2%
7Any part of jewellery made up of plastic, bead, glass, rubber2%

Points to be kept in mind
The rates in Sr. No. 1 is to be applied only if purity of gold or silver is more than 50% i.e if less than 12 carat then will not be classifiable under the above table and will have to pay 5%
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Tuesday, April 9, 2013

Rule 3 : Registration (Simplified)

Here is a concise explanation and conditions for registration for LBT
I have explained Rule 3(1) below

A dealer has to get registered if he full fills following conditions

1. Purchase > 5000 (of Taxable goods)  OR
    Sale > 5000 (of Taxable goods)                         And

2. Import > 5000 (of all goods)                             And

3. Purchase > 1,00,000 (of All goods)   OR
    Sale > 1,00,000 (of All goods)

For exact wordings of the Rule see : LBT Registration

For other important points for registration click here

Also See : Online Registration of LBT 
Read more ...

Friday, April 5, 2013

Explanation to Rule 27 : Lump sum Payment of LBT

Here is the Explanation (Concise) to Rule 27

Also See : Rule 27 (Bare provision)

Because of new Circular, the below explanation has changed, please click here for new explanatory

If a dealer satisfies the below conditions then he can pay LBT on "Lump Sum Payment"
1. Purchases during the year less than 5,00,000 Rs.
2. Furnish Declaration in Form R.
3. Receive order granting permission.
4. Make payment within 15 days from date of receipt of order.


As per second proviso to Rule 27(1) id the dealer does not make payment within 15days (i.e. the time stipulated) then permission shall stand withdrawn.
Read more ...

Wednesday, April 3, 2013

Registration - Important Points

Continued from : Registration for LBT

Now that you have understood when you have to apply for registration, Let me state what are the other points Important to be considered for registration

  • A dealer registered under the MVAT Act having place of business within the limits of respective Municipal Corporation shall be deemed to be registered under LBT.

  • A dealer having more than one place of business in two different corporations will have to obtain separate registrations of LBT in respective corporation limits. For e.g.:- A dealer having places of business in PMC or PCMC will have to obtain separate registration for both municipal corporations.
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Tuesday, April 2, 2013

Registration for LBT

The starting point for any taxation law is Registration.
So, let's understand what we have for LBT, before I say in my simple language let's hear what Section 3 says about registration.

Section 3 :  The limits of turnover  for registration.-

(1) The limits of turnover  for  registration shall be,-

(a)  in the case of a dealer,  who is an importer  and  whose turnover of  sales or the  turnover of purchases of goods specified in Schedule A, during a year, is not less than  Rs.5000/-, and the value of all the goods imported by him during such year is not less than Rs.5,000/-, and the turnover of all his sales or the turnover  of all his purchases  during  such year, is not less than  Rs. 1,00,000.

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Monday, April 1, 2013

Is LBT applicable in Thane

A short answer to the question "Is LBT applicable in Thane?" is 
YES w.e.f. 01-04-2013

But this is not what you are expecting or this is not for what you came here
You need a notification or a Section in a Act which has a legal binding and can be presented and accepted in the court of law.

So, here it is.
A Notification from A S Jivane (Deputy Secretary to Government)

Notification stating that LBT will be applicable to Thane Municipal Corporation
Still some one will want a PDF file of the original notification
So here it is

Download LBT Applicability Notification  (Mirror 1)

Download LBT Applicability Notification  (Mirror 2)
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