Tuesday, December 31, 2013

Traders not issuing original bills face LBT action

The dealers and traders not issuing original bills to customers have started to face the music. The Nagpur Municipal Corporation (NMC) has conducted raids on seven dealers in last three days for local body tax (LBT) evasion and not issuing original bills to customers. NMC's LBT department has also warned businessmen eligible under LBT norms to avoid violations of the rules.

The department's team led by assistant commissioner (LBT) Mahesh Dhamecha conducted the searches.

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Tuesday, December 24, 2013

NMC to seek govt's view on LBT exemption for export units

The Nashik Municipal Corporation (NMC) has decided to seek government's guidance on exempting export oriented units (EOUs) in the limits of the municipal corporation from the local body tax (LBT). The civic body sent a letter to the state government in this regard.

There are around 20 EOUs within the NMC's jurisdiction. Industrial associations such as Nashik Industries and Manufacturers' Association (NIMA) and Ambad Industries & Manufacturers' Association (AIMA) have urged the NMC to exempt EOUs from LBT.

An NMC official said, "We generate revenue of around Rs 1.5 crore through taxes from the EOUs in Nashik. As per government rules, LBT is to be levied on sale, use and counter sale of products. There is no clarity in the rules pertaining to tax exemption to EOUs. So we have decided to seek government guidance on the issue.The decision pertaining to tax exemption will be taken as per their instructions of the government."

AIMA president Suresh Mali said, "There are around twenty 100% EOUs at Ambad and Satpur industrial estates of Maharashtra Industrial Development Corporation (MIDC). The NMC should provide tax exemption to such EOUs to promote export, but it's not happening. During our meeting with municipal commissioner Sanjay Khandare, we had urged him for tax exemption to EOUs. But no decision has been taken yet."

Following the state government's directives, LBT came into effect in the limits of the NMC from May 22 this year, replacing the previous octroi . Around 23,500 traders and industrialists have been registered with the LBT.

There are around 3,500 small, medium and large industrial units in Satpur and Ambad industrial estates of the MIDC, located in the jurisdiction of the NMC. The civic body earns 60% of its total revenue through taxes from the industries.
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Friday, December 20, 2013

LBT Raid on 2 Shops in Mall

The Thane Municipal Corporation (TMC)'s local body tax (LBT) officials have now started cracking the whip on defaulters from shops located in malls across the city. They have so far conducted raids on shops located in old market areas of Thane.

On Friday, LBT officials, led by deputy municipal commissioner Dilip Dhole, conducted a raid on showrooms belonging to multi-national brands like Adidas and Reebok stores at two of Thane's popular malls.

''We raided Reebok stores as they defaulted on payments to a tune of Rs 6 lakh. Since the enforcement of LBT, both the Reebok branches have not being paying their dues,'' said Dhole.

He added, ''Adidas showrooms were also under the scanner of the LBT department. As both the outlets are new it is difficult to calculate the default amount. But both have obtained LBT registration certificates.We will fine them and take action against them.''

Expanding its base from confined old market area to industrial zone, now Thane Municipal Corporation's (TMC) local body tax officials have targeted posh malls in the city to crack the whip on defaulters.

On Friday, LBT officers led by deputy municipal commissioner Dilip Dhole conducted raid on multinational brand showrooms like Adidas and Reebok at Korum and Vivian malls.

"We have raided on Reebok shops at both Korum mall and Vivian Mall on Friday evening for default payment of LBT to a tune of Rs 6 lakh. Since the enforcement of LBT in the city Reebok show rooms in both the malls have not paid LBT dues after being registered under this new levy," Dhole told TOI on the sidelines of Friday raid.

He further added that "Adidas showrooms in Korum and Viviana were also under the scanner of LBT department. Though both the outlets are new it's premature to calculate the default amount now. But both have obtained the LBT registration certificate. We will screw them with appropriate recovery including fines, interest and penalty."

Till date, TMC has recovered Rs 3 crores from regular raids. since early October and 62 shops and industries came under the fold for flouting LBT rules.

Now, the TMC is planning to move beyond old city to Kalwa, Mumbra and Diva from where collection amount was received a paltry. The TMC is waiting to add more staff into its existing fleet. "We are yet to calculate the pending levy from all raided stores to slap them demand notice for payment. The raid will be a regular feature now as we are falling short of our set target of Rs 600 crores till March 31, 2014. We have just achieved the half way mark with Rs 315 crore including LBT, stamp duty and escort."
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Friday, December 13, 2013

Godown Queries

This post shall discuss and attempt to solve all the queries relating to LBT (Local Body Tax) in case a person has a Godown in a Non LBT area but purchase bill contains address of main office, which is in LBT area.

When I say "LBT area" I mean within city limits where LBT is applicable.

  • Q - Whether LBT is payable if Address of bill is of Main Office, but goods delivered to Godown?
  • A - No, LBT is not payable. LBT is payable only if goods physically enters the city (except Rule 20, which is not applicable in current discussion). But a dealer will have to prove that goods has not entered city.

  • Q - LBT payable? if Godown address is not mentioned in Invoice?
  • A - Yes, as there is no proof of goods being delivered at godown

  • Q - So, what proof has to be kept for proving goods have been received at Godown and not at Main Office
  • A - Invoice should contain address of Godown, Attach delivery challan to Invoice, Keep copy of lorry receipt.

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Tuesday, December 10, 2013

Revised Local Body Tax proposal

Revised Local Body Tax proposal to be sent to state govt

The Navi Mumbai Municipal Corporation (NMMC) will submit the draft of the revised Local Body Tax (LBT) to the state government in three weeks for its approval.

"After discussing the existing tax structure with the traders' community and other concerned parties, the civic body's tax (cess) department has prepared a revised LBT proposal which has reduced a certain slab of the LBT," said Sudhir Cheke, deputy municipal commissioner (Cess).

He added that all the points raised by the mercantile community representatives and suggestions given by guardian minister Ganesh Naik have been taken into consideration while drafting the revised proposal.

He also said that the draft will be tabled before NMMC commissioner Abasaheb Jarhad for any final changes and then forwarded to the state government for its approval. "The process will be completed in three weeks," Cheke said.
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Friday, December 6, 2013

New LBT Rates for Thane

LBT Rates for thane has changed. (Rates Scanned copy below)

The new LBT Rate schedule makes amendments for many goods or category of goods. For example -
  • Charcoal and Badami Charcoal
  • Cotton
  • Ice including dry ice.
  • Industrial inputs and packing materials
  • Desi Ghee, Loni, All kind of fats
  • Iron and steel,
  • News print
  • Articles of personal wear, clothing accessories, 3.50%
  • made up textile articles
  • goods of wool & silk cloth
  • Spices including cumin seed, hing
Apart from these goods, the rates for Petrol, Diesel has also been reduced. The new Rates are as bellow
  • High I Light Speed Diesel Oil - 2.00%
  • Aviation Turbine Fuel (Duty paid) - 2.00% 
  • Aviation Turbine Fuel (Bonded) - 2.00%
  • Aviation Gasoline (Duty paid) - 2.00%
  • Aviation Gasoline (Bonded) - 2.00%
  • Any other kind of Motor Spirit - 2.00%
Download New Thane LBT Schedule
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