Starting GST Study Group

Hello Friends, LBT Consultants,Visitors
(Please read below only if you live in and around thane, as this post only applies to them)

There is a new career opportunity developing for all aspirational CA, CS, lawyers or who already are CA, CS, lawyers..

The field I am talking about is GST (Goods and Service Tax)..

I need not specify all the new opportunities GST shall bring, but to list a few - Consultation, Systematic & In-depth accounting, Audit, Representing clients in tax Dept..

We have to start early, if we were to grab this opportunity..
With this in mind, starting a GST forum for those who inspire to make career in GST for people living in and around thane.

We shall meet monthly, have chat group, undertake study of GST, effects of GST in particular industry, study all the aspects of GST.

The meet is scheduled on coming Sunday - 28th Dec 2014 at Korum mall - Food Court at 10.00 AM Sharp

Forum is open to all
Share this info with your friends, may be they will be interested, if not you.

10.00 to 10.30 introduction of Study Group Members
10.30 to 12.00 GST discussion on Constitution Amendment Bill (Can be Downloaded from - http://ge.tt/1m0EzG72)

If interested,
Reply with your confirmation for the meet on 9987166QQQ (SMS or Whatsapp)
Also Join the event and see who all is coming on Facebook - https://www.facebook.com/events/387742061401651/

Update 29/12/2014 : Number Deleted bcoz of SPAM

For those who wants to keep track of GST, similar to this blog on LBT, have started with GST blog few months back - indirecttaxin.blogspot.com
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LBT shall go when GST Comes - Now it's official

Good news for traders who are baffling with LBT.

122nd Constitution Amendment Bill for GST is tabled in parliament. This bill shall lay foundation for GST, as it shall make changes in taxation lists i.e. - Union, State, Concurrent list to provide for a unified single indirect taxation.

The list of taxes which shall be subsumed in GST now officially contains all types of Entry Taxes. Hence, LBT will now be gone once GST will be in effect from 1st April 2016.

Below is a excerpt from 122nd Constitution Amendment Bill

Excerpt from 122nd Constitution Amendment Bill

122nd Constitution Amendment Bill copy can be downloaded from IndirectTaxIn.blogspot.com

Maharashtra govt had earlier stated that LBT cannot be abolished untill GST is implemented.

For complete list of taxes that will be substituted by GST click here 

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LBT is like - Crushed Sugarcane without Juice

Thoughts by +Kishor Lulla 

It is true that one cannot break the law, irrespective of his or her position or influence, and if it is broken, one should be held responsible for it, and for that purpose, one could be punished in connection with severity of the crime, but if the law itself is made against the human rights and responsibility, then ?.The endeavor of the government to collect the revenue through the legal arrangements was started by the Roman empire and had named it as ‘Octroi’ for the first time, which was later adopted by the world, and we too, followed it ! 

This arrangement was continued by the Local Body, till last to last year. 
But two years back, the State decided to phase out Octroi and phase in Local Body Tax, which was not happy ending of the problems. In 1987, a Committee under Maharashtra’s former Chief  Secretary, Shri P.D. Kasbekar had recommended a Local Body tax, in place of Octroi. After various committee meetings and about several years of deliberating, Maharashtra has finally decided to implement LBT in some Corporations phase wise. Why this new law was made forceful this much late ?The reason, it was not suitable !
Octroi is a one time tax imposed on entry of all goods, but it has some difficulties too. Under LBT, traders and manufacturers are required to keep their monthly record. There are other taxes existing like Excise Service Tax, VAT etc. including LBT, and now GST has also started peeping in. Currently, the protest against Local Body Tax has increased in a very severe manner.This reflection is due to feeling of harassment to the traders.
 
Over the last decade, all States except Maharashtra have replaced octroi by other taxes, e.g. Tamil Nadu, it fixed flat 2 % rate, and it also restored it. Gujarat abolished octroi and instead hiked VAT rates by 1 percent. The octroi was simple in procedure to be followed, where as in LBT, though it is an alternative to octroi, the heavy compliance is  amounting to complication, therefore, LBT too, is lacking the cent percent.
                                                                 

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LBT Solutions More Draconian: Traders

No end in sight to local tax issue as alternatives  - turnover & entry tax cut no ice with biz-men Maharashtra Chief Minister Devendra Fadnavis' effort to find a compromise solution to the local body tax (LBT) seems to have again run into a wall with the traders' body showing little interest with the options offered by the new CM.

Fadnavis had said that his government would withdraw LBT soon and that a `solution' is in the `final stages' even as it held out two options -turnover tax and entry tax. Both options, however, failed to cut much ice with the traders.

Mohan Gurnani, president of the Federation of Associations of Maharashtra (FAM) that is negotiating with the state government on behalf of the traders’ body, said they were not happy with the options.

“The turnover tax is more draconian than LBT. For instance, under this, if a manufacturer sells a match box to a wholesale dealer, then he would have to pay a turnover tax, while the wholesaler would also have to pay a tax if he sells the match box to a semi-wholesale dealer, and the latter would have to pay the same tax if he sells it to a retailer. The retailer would also have to pay a turnover tax if he sells it to a customer. This would lead to a cascading effect on the prices and is not at all workable,” Gurnani claimed.

The traders are also opposed to the entry tax, which Gurnani claimed is just another form of octroi. “It’s basically an other form of octroi called the entry tax whereby goods coming in the jurisdiction of a municipal corporation or council limits have to pay tax. We oppose this as it is just another form of levying octroi which we have opposed,“ he added.

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LBT to Stay till GST is implemented

The BJP in Maharashtra had declared before the assembly elections in the state that Local Body Tax or LBT would be removed if they came to power in the state, however now it's clear that despite ·the BJP taking charge of the government it will not be removed. State finance minister Sudhir Mungantiwar said on Thursday that LBT will stay in Maharashtra till General Goods and Services Tax (GST) regime is introduced by the Centre. Traders in Maharashtra had launched several agitations against the Congress-NCP government in the state in the last one or two years to oppose LBT and specially the system of the collection of this tax.

In an earlier post, had already predicted that without GST, it will be difficult to withdraw LBT as govt needs to have a plan to generate revenue from other sources to compensate revenue loss from LBT withdrawal.

Traders even shut down markets and wholesale trades in major cities of the state on several occasions while opposing the LBT. As this became a political issue in the state, the BJP had promised traders associations that if it comes to power, LBT would be withdrawn.But the new BJP government in the state has now announced that the tax will stay at least till GST is introduced which is likely to happen in 2016.

To understand the reason for this, read - Understanding Revenue Neutrality. 

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LBT Problem top go in 15 days

Chief minister Devendra Fadnavis has assured traders that he will find an amicable solution to the tangle over local body tax (LBT) within a fortnight.

Newspaper clipping on 5th November, 2014

At a meeting with the traders  on Wednesday, Fadnavis said his government was committed towards ensuring a transparent taxation system for them.

According to president of the Federation of Association of Merchants (FAM), which had spearheaded the agitation against LBT, Fadnavis was very positive about resolving the issue.

The traders have been demanding that octroi as well as the LBT system be scrapped, and additional cess be collected instead, based on the sales tax collection.

The latest news suggests that LBT will be collected by imposing 20% Surcharge on VAT. But the corporations still are not confident about the move. I had discussed the reasons in my last week post - Solution to LBT Problem

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Solution to LBT Problem

Now that we are sure with whose government is going to form in Maharashtra, we can expect some solution to LBT (Local Body Tax) Problem. 

Maharashtra designate CM Devendra Fadnavis, at a rally Maharashtra Election rally addressing Traders on LBT

This article is about what could be solution to LBT Problem.

Let's have a brief introduction to LBT Problem.
Industrialist were not happy with Octroi, as whenever the goods used to be imported into the city, it was assessed at the Naka and Octroi was paid. Then there is infamous corruption. Traders were also not happy, but Industrialist were furious. By traders, I mean those who were importing goods once in a month or quarter. Few of the traders were not coming under the Octroi net as they used to carry the goods with them and hence bypassing the Naka. By Industrialist, I mean those who used to import goods on a daily basis and were being harassed by Octroi officers on almost daily basis.

This all lead to voice for a taxation system which removes Naka. Thus the introduction of LBT. Industrialist were happy that this will reduce the harrasment and also the goods movement will be faster. But the traders were irritated as they will have another department to take care and also will need to have a complex and complete accounting of all goods purchased and sold. Talking about the "few traders"

LBT was supposed to be a simple entry based taxation where we would have a single rate of tax (or a 2 rates system max). But this expectation were crushed as soon as the government came out with rate schedule. To further agitate the business community, the rate schedule was different for all corporation. To even further complicate the situation, the LBT rules were not drafted properly. The LBT rules (which effectively is LBT Act) had many interpretation and thus complex to understand. The problem doesn't stopped here. The Octroi department was shifted to manage the LBT department without proper training in many of the corporations which added to the complexities. 
Thus we had a LBT problem. We all needed the LBT to go.

Let's now discuss, the present situation and then the solutions to LBT Problems.
Since BJP has already promised the traders to remove LBT from Maharashtra. Shiv Sena has also made a similar promise. So, on the assumption that these promises shall be kept, the LBT will have to be scrapped. But the solution to the problem is not so simple. The government will have to think as to how will this gap of funds be filled up and by which Tax. 

Municipal corporations have already told state government that, the corporations will need some tax or another in place of LBT. Considering the fact that in most of the corporations the collections from LBT has been less that what was the collection under Octroi. 

Let's now discuss, the solutions to LBT Problem
1st Solution -  Increase VAT (i.e. LBT collected by adding it to VAT)
This is the most discussed solution to LBT Problem. Also this is the favorite of Traders. Here the proposal is to increase VAT rate and the VAT collected on account of this increased rate of VAT shall be distributed to corporations. It has following Positive points

• Reduces one department for businessmen, thereby reducing compliance  (not to mention corruption)
• Ease in doing business
• No fuss of accounting, which is required in LBT

But,

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New revamped Site

Hello my friend Visitors,
Taking a cue from +Narendra Modi Ji clean up drive, Have cleaned up Local Body Tax Blog to more cleaner and modern look.

Inspiration from PM for Cleaning this blog

I hope all shall enjoy this new look.

• Now website loads faster.
• Adding images to every post, Better than have a plain text only LBT Blog.

Wishing all Happy Gandhi Jayanti and Happy Dussehra.

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Developments in September 2014

This is the list of what all developments happened around LBT in August 2014. I had started last month to post all LBT news updates on a monthly basis, were in one page get all news about Local Body Tax.

List of the news covered in this month news update

• Nagpur Local Body Tax department conducts Search & Seizure
• Navi Mumbai may lower LBT rate to flat 1.5% after election
• TMC cracks the whip on LBT defaulters
• Is Town Planning Department swallowing LBT revenue of NMC by ‘dirty deals’ with builders?
• AMC not likely to execute new projects because of LBT woes
• HC issues notices over scam in cold storages
• 669 of the 739 traders found evading LBT at Nagpur
• Govt ayes hike in local body tax on 4 items in Nagpur  
• Ulhasnagar Municipal Corporation officer arrested for graft
• Kolhapur Civic body seals bank a/cs of more than 500 traders over LBT 

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Continued Focus on LBT

Since the news of LBT being scraped, the blog was put on a backtrack as far as updation is considered. But now it has been over couple of months of speculation about LBT's face, still now there is NO firm news as to "Whether LBT will stay or Scraped?"

I am refocusing my attention on Blog Updation and the following are the new changes in blog.

1. Added Corporation tab in menu (see Top of the blog, besides  LBT Consultants).
2. Added Thane updated LBT Rate.
3. Added Pune LBT annual Return download link.
4. The news posting is now summarized to monthly posting, so that in one reading one can know what all happened in a particular month about LBT. View August LBT News.
5. Added 7 Corporation full info in one page.
6. Updated Downloads page, where in one go can download all updated LBT Rates, Annual Return, LBT Rules, LBT Books, Challan.
7. Added Navi Mumbai LBT Rates 2013 and 2014 amendment.
8. Nashik Application form & LBT challan added
9. LBT payment to be made in which bank account along with account number added
10. Notification withdrawing Transportation surcharge in Nashik added

These are the list of what people who have contacted for saying thanks

Name	Comment
Prakash	This website is informative, hence putting up question
Mayuresh Kokil	Its Good ,
Vaman kudva	Quite informative
avhad r b	good and informative
Amol Athawale	Very Informative and much needed for people who are getting impacted.Thanks for sharing a very useful updated information.regards,Amol
Subodh Kulkarni	Good website , useful.
NAVIN PALNITKAR	I am glad to know that the right information about LBT is promptly made available by Mr.Adarsh so that citizens from all fields can be aware of the finer details of the law.
Amul Pandit	Informative
pawan singhal	very useful
pratap khialani	very informative no doubt
Sudish Sukumaran	Very useful especially because there are lot of open questions about LBT
Vaishali Chavan	Good , Knowledgebel. Like
C.D. Kulkarni	searched for rules and regulaions of under section 28
Milind Chakradeo	A good initiate and very informative.
S D Lalwani	It is wonderful
Punjab National Bank	Very informative.
Navani Udhav	The Site is very informative.
Navi Mumbai Co-op Bank Ltd.,	excellent.
RAMESH MISHRA	Good
Vinayak Shimpi	Good Work.... Very informative site.... keep updating the latest changesHad made the payment.... kindly add my email id for viewing the ebook on lbt....thanks
Omprakash Singh	First of all i like to thank you for such a great effort. The information posted on web site is very useful... Thanks
Omprakash Singh	Excellent work done by you people...Hats off..
Nerkar Y P	Really beneficial to everyone. Legal language is difficult to understand, hence its correct/actual interpretation in simple language is very important. Thanks for the service.
Manish	Excellent and probably the best website for this confusing LBT.Thanks for making it simpler.
Nerkar Y P	Very useful to every dealer
stelson	Very informative
vikky rawal	this website is gonna help alots of people who where unaware about LBT and the issuesthanks a lot for making this blog doing a grt job
arun davda	Good, very Good information
Shrinivas Oak	Great information and useful writeups by Mr. Madrecha. Thank you for providing such a website. Information of this nature is not provided on the TMC website hence this is really helping. Thanks a lot.
Vithal	Good,
hetal parikh	the information is very lucid and useful. i would like to be a part of your question and answers session.
PRAKHYATH	good
hetal parikh	very good
Sunil Bukate	You done Excellant job in this new Tax ,your blog very helpful to all visitorsI appriciate your workCongrets
UNNIKRISHNAN	Through Internet
PARAG PATWA & ASSOCIATES	Good
Harjeet Laungia	Informative ,excellent and in depth explanation
devesh mandhan	thanks
KHUSHAL SHAH	It is good to see the Website made for LBT.
CA Diwakar Kiran	Since i Shaw your website first time so i cann,t comments now but as per your reputation hope it will be very helpful to me.
s r sons	LBT Registration numberDalvi Auto CenterS R Sons
mukul	great.
mukul	good.
Baakul S Mistry	informative n easy approach
Akhil	Fantastic
SHRI K C AGENCIES	well i am trying it now only first time
Jitendra	Hello,good website keep-it up
Nandish	Through Google i got website detail
Bharat Mantri	Was scrolling website and saw your site....
pankaj	very helpful
Ashok Harale	It nice website appriciate your efforts
Hitesh Shah	The information provided on website is very useful solving mostly every query related to LBT
Pramod More	Realy its good webside for information about LBT.
Mr Atul Shirke	Dear Sir,Cement name not mentioned the LBT Thane
Sandeep S.	Very Useful, Thank You.
Sandeep Rasal	Through browsing.
SHARDUL SONAWANE	This website is indeed very informative.
Harishyam Singh	Good
Yogesh Chandwani	I personally found it helpfull in educating people about the system to which they are new. A lot of people are misguided and are taken advantage of because of poor or no guidance at all. However, this website has been helpful in self educating about LBT laws and protocols.Thanks for putting in this system, Wish you all the luck in your nobel cause. I shall be looking forward for your response to my querry.Thanks Again.
Urvi	Not much material is available on LBT on the web. This blog plays a good role in such a scenario.
rahul	google search
ANKITA SHAH	its very help full
hasan	GOOD
Jayant Shah	This is a very good website for local traders and consultants of LBT. The speed is also very good. The pages are nicely arranged and all the relevant information is clubbed appropriately. Thanks for starting such a good website.
Naeem Rahmani	Thank you very much Sir,The information and details are very useful
Javeed Katewala	Very useful knowledge regarding LBT
ANIL C KHANDELWAL	very useful !!
Kabiruddin	good
Siddik	This site holds very informative articles about the LBT
pankaj	awesome
mahavir	internet search
KREISEL PUMPS	Good
CA Sandip Patel	Very useful
RAJESH SHAH	OUTSTANDING
CA. Sajid	Very informative, helpful & self explanatory.
Vivek Bokaria	on net
Dishit Thakkar	Extremely useful!
Vivek Bokaria	FROM NET
Sunil P Bukate	Very good In simple words& Regular updated siteWell DoneSunil Bukate Tax Consultant ,Sangli9422615246
ganesh	This website is very useful.
Swapnali labels	fine
dhanashree	fine
RAJENDRA NIKAM	through internet
Arun Hegde	Very comprehensive.
Ankur	Very informative !!
Aankit Jain	Need LBT assistance
Roshani shrivastva	Its good but still need assisstance
S.KRISHNA MURTY	google search
Rakesh	Awesome site

There is still some information pending to be added to the Corporation wise LBT Pages, These information is not available on the websites of these municipal Corporation. If you have any information, please send it through Conatct Us page.

To have glimpse as from which part of the state the visitors have came on this blog, see the picture below generated from Google Analytics

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New LBT rate for Thane from 16th August 2014

Thane Municipal corporation has appended LBT Rate Schedule for thane.

Government of Maharashtra considers it expedient to revise the rates of Local Body Tax on entry of various categories of goods into the limits of the City for consumption, use or sale therein, with effect from the 16th August, 2014 in order to improve the acceptability of the Local Body Tax and to ensure better tax compliance 

Download New Thane LBT Rate Schedule

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Developments in August 2014

This is the list of what all developments happened around LBT in August 2014. Starting this month, we shall have monthly post of all the news about LBT, Were in one page get all news about Local Body Tax.

 Munucipal Corporations hope that collection growth rate will pick up.

• Corporations bat for LBT, hope Growth rate will pick up
• Traders feel LBT is good but tedious.
• Bandh at Kolhapur by anti-toll committee, causes 80Cr losses in city.
• Petrol Pumps on indefinite strike in Maharashtra since 26th August.
• Proposed strike of petrol dealers called off.
• LBT Protests continue, but demands get complicated 
• Pune unit objects to local body tax rate revision
• Escort charges scrapped by Pune Municipal Corporation, LBT takes Rs 45-crore dent
• Aurangabad Municipal Corporation hikes local body tax to mop up Rs 15cr
• 3-member team to advice civic body on Local Body Tax returns in Thane
• Civic body invites CAs to monitor LBT returns
• Aurangabad Civic body may bring back octroi in city soon
• Civic bodies can choose between LBT and Octroi: Prithviraj Chavan 

To see what all developments happened in GST in August 2014, click here

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Cleared CA Final - Thanks for blessings

With proud and humble I thank my all visitors, well wishers for all their blessings and prayers, which helped me achieve my dream.

Thank You all for being with me, motivating me, inspiring me.

A Special thanks to my Mom and Dad (+Ashok Madrecha ) and my Friend +Ashish Badala 
I dedicate this post to all my Teachers who helped me through this journey.
School - Palbha, Renu, Jyoti jatkar, Rekha Rao, Ruby Robinson, Jyoti parashar, Rejina,
Jr College - Kalpana, Neve,
Sr College - Neelam Shek, Vandana, Keskar, Vinod, Yogesh Sharma, Sindhu,
MTC(10th) - Harush, Anil vazoor, Rashmi Liu, Mahesh Shetty
MTC(12th) - NM, Prem, Ajay Saraf, Behram
MTC(CA) DJ (Devendra Jain), KM (Kalpesh Mehta), RI (Raghunathan Iyer), PKM (Pankaj Megha), Nihit Jhaveri, Shrenik Kotecha,
Logical classes - Abhijeet
Articleship - CA Ashish Kamdar, Ketan Kamdar, Nilesh Bhai
CPT classes - Pankaj Bora, Rashmi

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New hopes from Uddhav Thackeray

Representatives of Thane and Navi Mumbai business community met Uddhav Thackeray recently, along with their counterparts from 24 other municipal corporations, on 25th July 2014, to urge him to bat for removal of the prevailing local body tax (LBT) and bring a single window tax structure.

During the meet, Thackeray reportedly assured them that he will take serious steps to set the traders free from octroi in Mumbai and LBT elsewhere.

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Inviting Authors to new Blog on GST

Hi Friends,
I welcome you all to my new blog on Goods and Service Tax (GST). Where all the News, Articles, Explanation, Discussion about new Tax "GST" shall be posted.

This shall be my 3rd blog after 

1. xbrl for Indian CA - 18,000 Visitors (As on 29th July 2014)
2. LBT Thane - 1,35,000 Visitors (As on 29th July 2014)

My others small blogs include - LBT Books (For LBT books), Nihit sir direct Tax (Under construction), Set balance in Life (Motivation Articles and Poems by Dad)  Which have combined visitors for around 10,000 as on 1st July 2014.

This blog shall be a little different than my earlier blogs, instead of me only posting all articles, I invite all experts in Indirect Taxation to be Authors of this blog and post their articles here and earn recognition of themselves.

The authors shall be posting their articles from their own accounts, Their names shall be automatically appear near their articles by Blogger. Their names shall also appear when any post appears in Google Search Results or any Search engine for that matter.

The following are the requirements for becoming a author for this blog

1. A Google account is a must. If you have a Gmail then you have a Google account already. Just visit plus.google.com to add your photo and details about yourself as this profile shall be linked when you become author.
2. Knowledge about Indirect tax (CA, Advocate, CS, Tax Practitioner, CA Final Student)
3. Some knowledge about blogger is recommended. But if you have a decent android phone then No knowledge about blogger would do. As there is an app for posting to blogger directly though the phone and let me inform you that learning blogger is not at all difficult. It is just like using MS word online.
4. That's all

Interested persons can send me a message on Google Plus or Facebook or Fill in the Contact Me form on the blog.

I have just created this blog, so not have applied any customizations to this blog. In future this blog shall definitely look awesome then what is present today. To just have a glimpse of this visit my recently customized Blog - Set Balance In Life     

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Confusion Clearing : Do we still have to pay LBT?

Yesterday I attended a seminar on Changes in Taxation by Budget 2014, I was really surprised to hear a conversation between two Chartered Accountants. The surprise was more as those who were talking were CA practicing for more than a decade. [Pls don't take this as Offense to any Profession]

1st:  Have a little respite, now that we don't have to make LBT payments every month.
2nd: The payment schedule has changed?
1st : No, Didn't you heard that LBT was getting demolished?
2nd: Ya, Ya, have read in the newspaper.
1st : LBT is getting replaced by VAT from August 2014
2nd: Wow, that's great. I shall also tell my clients about this. Thanks.

My observations, Newspapers say something. We understand something. We say to others something. Then people form a completely different outlook and notion. After this, taxation department forms a even more different picture of all the tax payers.

So, this post I am writing to clear the confusion regarding LBT applicability.
Q : Is LBT gone?
A : No. LBT is still applicable and shall remain applicable unless there is notification regarding cancellation of LBT.

Q : I have heard too that from July/ August onwards we don't have to pay LBT
A : This is just rumors. LBT has to be paid even after July/ August

Q : If LBT goes, do we still have to file LBT returns?
A : Yes, even if LBT is scraped, Returns for the period will have to be filled.

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LBT on Electricity?

The standing committee members on Saturday (20th July 2014)  took a tough stand by asking the Aurangabad Municipal Corporation (AMC) to bring supply of electricity under the ambit of Local Body Tax (LBT). Terming supply of electricity as a commercial activity, the members said the power franchisee for the city "GTL Urja" should pay the tax.

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Kolhapur (KMC) started the procedure of sealing the bank accounts

A harsh spet by KMC. The Kolhapur Municipal Corporation (KMC) started the procedure of sealing the bank accounts of 581 traders from Saturday, with a significant number of traders who still remain out of the local body tax (LBT) ambit taking a toll on the civic body's coffers.

Only 16,500 traders out of the 21,000 that were handed out trading licences by the KMC have been brought under the net of Local Body Tax (LBT). The KMC had recently issued notices to 906 traders for their failure to submit trading details and evading tax. Of these, only 325 traders later paid the tax that helped KMC rake in Rs 2.39 crore in four days since July 16. As on July 18, for the current financial year, the KMC has raked in Rs 22 crore from the tax, against a target of Rs 83 crore.

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No entry to goods without LBT registration in Nagpur

For the first time in the last 15 months, the Nagpur Municipal Corporation (NMC) has come up with a bold decision to crack whip on the traders neglecting registration under local body tax (LBT) and also evading tax amount. From Monday, traders not having LBT registration will not be permitted to bring goods in the city.

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New tax proposed in place of LBT

The Maharashtra government is actively considering abolishing local body tax (LBT) and octroi in the state and putting in their place a 2.5-3% surcharge on value added tax (VAT). 

Chief minister Prithviraj Chavan said at an event on Tuesday that there is a strong demand for LBT's elimination. "We have no option but to go ahead with an increased VAT. We will have to make requisite changes in the law, following which the official announcement will be made," he said.
The CM noted that traders had sought a surcharge of 1% on VAT, but this could not be acceded to since it would not "cover the amount the local bodies were getting through octroi and local body tax".  LBT is the tax imposed by local municipal bodies on the entry of goods into a "local area for consumption, use or sale therein".

Barring in Mumbai, LBT has replaced octroi across Maharashtra. The state is projected to earn about Rs 14,000 crore through LBT in the current financial year. Its revenue from VAT, meanwhile, is reported to be close to Rs 60,000 crore.  Mohan Gurnani, president of the Federation of Associations of Maharashtra, said traders are ready "to pay tax, but we want the system to be free of corruption and red tape". He added that a flat 2.5-3% surcharge on different VAT slabs would raise prices of goods considerably, so "we are proposing a 20% hike on each VAT slab".  Traders want the government to calculate 20% of each slab percentage separately and increase the slab individually by that result. But government officials maintained that the formula suggested by traders would put a greater burden on common consumers than the way out being actively considered by the state. 

Source

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If LBT goes, vat shall increase by 3%

The Maharashtra government is actively considering abolishing local body tax (LBT) and octroi in the state and putting in their place a 2.5-3% surcharge on value added tax (VAT). 

Chief minister Prithviraj Chavan said at an event on Tuesday that there is a strong demand for LBT's elimination. "We have no option but to go ahead with an increased VAT. We will have to make requisite changes in the law, following which the official announcement will be made," he said. The CM noted that traders had sought a surcharge of 1% on VAT, but this could not be acceded to since it would not "cover the amount the local bodies were getting through octroi and local body tax". 

LBT is the tax imposed by local municipal bodies on the entry of goods into a "local area for consumption, use or sale therein". Barring in Mumbai, LBT has replaced octroi across Maharashtra. The state is projected to earn about Rs 14,000 crore through LBT in the current financial year.

Its revenue from VAT, meanwhile, is reported to be close to Rs 60,000 crore.  Mohan Gurnani, president of the Federation of Associations of Maharashtra, said traders are ready "to pay tax, but we want the system to be free of corruption and red tape". He added that a flat 2.5-3% surcharge on different VAT slabs would raise prices of goods considerably, so "we are proposing a 20% hike on each VAT slab". 

Traders want the government to calculate 20% of each slab percentage separately and increase the slab individually by that result. But government officials maintained that the formula suggested by traders would put a greater burden on common consumers than the way out being actively considered by the state.

Source : Times of India

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Is LBT really going?

LBT was again in news as there were speculations as it would be scrapped or at least merged with VAT. So, I have researched all the news relating to this to give viewers "One post read all news update"

So, if you have missed anything in news regarding LBT, worry not; read below to update yourself about it.

The story started with change in government at Center. With NDA getting majority seats in Maharashtra there was a clear understating as to people were fed up with existing government.

12 May 2012

'Vyapari Mitra', a city-based organization of traders, has called a meeting of all traders' associations from 26 municipal corporation areas of the state on May 14 at Pune. The traders would decide the future course of agitation against local body tax (LBT) collection demanding repealing the system.
The decision was taken at a meet in the city on Sunday. The date was conveyed to representatives of traders' associations through audio-conferencing.
Convener of the organization Ajit Mehta, said, "We will meet at the Poona Chamber of Merchants next week. We have planned to conduct video-conferencing with representatives of apex organizations and some experts. We will decide whether to resort to an agitation or any other mode of protest to compel the state to cancel LBT and octroi systems, as the latter still exists at some places."
Scource

16 May 2014

Traders from Pune, Kolhapur, Aurangabad, Nanded, Amravati, Solapur, Thane and Sangli have demanded abolition of the local body tax (LBT) from the state. The traders met on Wednesday to discuss the issue.
"The LBT is causing harassment to traders. Civic officials in many cities are undertaking unnecessary checks and conducting raids on shops as well as houses of traders. This has created fear among the traders. Hence, we want the LBT to be scrapped," said Walchand Sancheti, president of the Poona Merchants Chamber, while addressing a news conference after the meeting.

18 May 2014

The civic body's annual budget plan is all set to go haywire if the state government does scrap local body tax (LBT) ahead of assembly elections, following strong reactions against it from the trader community.
The state government fears the wrath of the trader and merchant community that has been building up against LBT might scupper its chances to bounce back to power. Civic officials fear loss of financial autonomy if LBT is indeed scrapped. 
Source

2nd June 2014

The Nagpur Municipal Corporation's (NMC) economic condition is deteriorating day-by-day ever since the implementation of local body tax (LBT).
Source

10 June 2014

Maha CM Chavan asks Mayors to suggest an alternative to LBT.
Maharashtra Chief Minister Prithviraj Chavan today asked the Mayors in the state to consult local traders on an alternative to the controversial Local Body Tax, so that the government can take a decision during the ongoing monsoon session of the Legislature.
"The government is committed to ensuring that autonomy of the civic bodies remains intact. The Mayors should tell the government whether we should revert to octroi or hand over the recovery of LBT to the sales tax department. With LBT, revenue of civic bodies increased, but there were some hiccups in the implementation of the new tax," he said. The CM however made it clear that rejection of both LBT and octroi can not be accepted. The monsoon session is to end this week.
Source

13 June 2014

NASHIK: Traders and civic officials on Thursday vehemently opposed Local Body Tax (LBT) and favoured surcharge on value added tax (VAT) with a facility for direct transfer into the accounts of the municipal corporation. This, they said, would enable the civic body to get tax revenue on daily basis.
This decision was taken at the joint meeting of city traders, industrialists and office-bearers of the Nashik Municipal Corporation (NMC) on Thursday. Following instructions from chief minister Prithviraj Chavan, city mayor Yatin Wagh had convened a meeting of traders and industrialists to discuss the issues related to the LBT and an alternative to the present tax system.
"During discussions, it was clear that there should not be LBT or octroi. But while introducing the new tax system to replace LBT, the state must ensure that it would be simple and convenient to public, traders and industrialists," Wagh said.
Source

14 June 2014

Take speedy decision on LBT, corporators urge government. Corporators and social activists on Saturday said that the state government should immediately take a decision about local body tax (LBT) as the prevailing uncertainty is causing heavy financial loss to the civic body.

Source

14 June 2014

Local leadership wants octroi to continue in Mumbai: CM. Without naming Shiv Sena and BJP, Maharashtra Chief Minister Prithviraj Chavan said today that the local “political leadership” was not interested in ushering in the Local Body Tax—which replaces octroi—in the megapolis.
The Municipal Corporation of Greater Mumbai is controlled by Shiv Sena and BJP. Speaking in the Legislative Council, Chavan said the political leadership and the commissioner of Municipal Corporation of Greater Mumbai wanted the octroi to continue, hence LBT was not introduced in the financial capital of the country.
Source

Conclusion

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Pune LBT Annual Return Form

Download Pune LBT Annual Return Form

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Nashik LBT Rates

Nashik Municipal Corporation imposes from 1st July 2013 onwards 1% surcharge on value of property in case of sale or gift or in case of an instrument of usufructuary mortgage. Click for Notification on this levy 

LBT Rates has been revised once in 2013.

Download 2013 (Amended) LBT Nashik Rates (ge.tt)

Download 2013 (Amended) LBT Nashik Rates (Nashik Corporation)

Download Original LBT Nashik Rates (ge.tt) 

Download Original LBT Nashik Rates (Nashik Corporation) 

More info for Nashik LBT - https://sites.google.com/site/mlocalbodytax/nashik

View LBT Original Rates Below

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LBT 2014 Rates for Pune

LBT Rates has been updated for 2014. Unlike other corporations, the new LBT schedule for 2014 gives rates for all the commodities and not only for the updated commodities, hence have to check only one schedule.

Download LBT 2014 Pune Rates (PMC)
Download LBT 2014 Pune Rates (ge.tt)

To view every information about Pune LBT visit
https://sites.google.com/site/mlocalbodytax/pune

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LBT 2014 Rates for Thane

TMC has updated Rates Schedule with effect from 1st April 2014.

Dowload new 2014 LBT Thane Rates Schedule (ge.tt)

To See all information of LBT for Thane visit new LBT page for thane
https://sites.google.com/site/mlocalbodytax/thane

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Issues for Builders and Developers

Some of the problems faced by Builders, construction contractors and developers

i.      A lot of problems may arise in case of builders and contractors as provisions and composition scheme are not clear. Detail working has to be made before selecting any method. For example – A builder is constructing a building of seven floor and above, having sanctioned 25000 sq. ft, is liable to pay Rs. 4,65,000/- @ 18.60/- per sq. ft as per R. 27(4). 

It is presumed that 
a. Cost of construction is Rs. 2500/- per sq. ft.
b. 50% material is imported.
c. Average rate of LBT is 4%.
d. So LBT works out at Rs. 12, 50000/- as per regular method.
Hence it seems that lump sum payment method is beneficial. One more benefit is that, once lump sum payment is made, no need to produce details of purchases. 

ii. Similarly, many Corporations make it compulsory to pay this amount at the time of sanction of plan. But it should be kept in mind that adoption of this method is the choice of the builder. 

iii. Once payment is made as per lump sum method, then it is beneficial to purchases goods from outside LBT area as it may cheaper to the extent of LBT. Since most of the builders may out lump sum payment scheme and therefore will try to purchase goods from outside LBT area, the business of suppliers of inside corporation area may suffer. 

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Answers to Question for Study

Had posted some questions on LBT for study as to test knowledge. Here are the answers to those questions.

Answers contributed by +Kishor Lulla  

1. A has imported goods & sold goods to B who is in corporation area. B has taken the delivery of goods (or entry of the goods by B). Who is liable to pay LBT? (S.2 (31A) ).
Ans – A is liable.

2. (a). Whether software downloaded by a dealer inside corporation limit which is purchased from a dealer outside corporation limit is liable to pay LBT? (S.2 (31A)).
Ans – Yes

(b). Whether software downloaded by a dealer outside corporation limit which is purchased from a dealer outside corporation limit is liable to pay LBT? (S.2 (31A) 
Ans – No

(c). In case of above (b) if software is transferred through mail by branch outside corporation area to Head Office within Corporation area ?
Ans – Yes

(d). Whether cable operator/ cinema theatre who downloads programmes / pictures from satellite within corporation area & show them to viewers by charging specific amount, are liable to LBT?
Ans – Yes. But contrary view its quite possible. 

3. A dealer outside corporation area brings taxable goods within corporation area for keeping in cold storage for any duration. Whether the said dealer is liable to pay LBT? Whether cold storage owner is liable to pay LBT? 
Ans – No

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Questions for Study

Test your Knowledge of LBT by answering to these questions. 

1. A has imported goods & sold goods to B who is in corporation area. B has taken the delivery of goods (or entry of the goods by B). Who is liable to pay LBT? (S.2 (31A) ).

2. (a). Whether software downloaded by a dealer inside corporation limit which is purchased from a dealer outside corporation limit is liable to pay LBT? (S.2 (31A)).

(b). Whether software downloaded by a dealer outside corporation limit which is purchased from a dealer outside corporation limit is liable to pay LBT? (S.2 (31a) 

(c). In case of above (b) if software is transferred through mail by branch outside corporation area to Head Office within Corporation area ?

(d). Whether cable operator/ cinema theatre who downloads programmes / pictures from satellite within corporation area & show them to viewers by charging specific amount, are liable to LBT?

3. A dealer outside corporation area brings taxable goods within corporation area for keeping in cold storage for any duration. Whether the said dealer is liable to pay LBT? Whether cold storage owner is liable to pay LBT? 

4. A goldsmith purchases old ornaments from the unregistered person who gives in writing that the said ornaments were previously purchased within corporation area only. Whether goldsmith is liable to pay LBT? 

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LBT Accounting now in Tally

Recently Tally updated it's most popular accounting software - Tally ERP to 4.8 version, This version among other new features incorporated LBT Accounting into the software.
In this post, I shall explain how to enable this new feature in Tally and also what new reports can be generated with this new feature.

First you need to check whether the company selected (with respect to tally) under "Statutory Compliance" has Maharashtra Selected.

This screen appears on pressing "Alt + F3" > "Alter"

Make Sure that "Maharashtra" is selected, otherwise the LBT shall not be activated.

Now on "Gateway of Tally" press "F11"

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No LBT withdrawal in State budget

Maharashtra Government disappointed taxpayers by not withdrawing LBT against which traders across State had been agitating since almost a year and although Chief Minister had assured traders that appropriate remedy would be sought shortly has failed to address this grave situation suppressing State traders from growth, which is hitting extremely hard in existing global economy slow down.

J. P. Sharma, president and Tejinder Singh Renu, Secretary of Vidarbha Taxpayers Association (VTA) in their joint press release on State interim budget 2014-15 said that even after concluding that revenue collection had drastically dropped by shifting from Octroi to Local Body Tax (LBT), govt did not withdrew Local Body Tax.

While, The ongoing stand-off between the state government and traders yesterday took a political twist.

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Blog Viewers crosses 100000

No of page views as on 02/03/2014  20:12

Thank You ,
to all Visitors of LBT Thane to make this blog achive 1,00,000 viewership.

We are proud to announce this news, as in just 10 months we could server such a large number of visitors and taxpayers.

This "Total Pageviews" is calculated by Blogspot.com (a google product) itself. Every Time you visit on this blog, your visit is counted by google bots and added to this number, so I say that my blog is visited more than 100000 (One Lac) times.

Click here to read what some visitors said about this blog in these months.

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Comparing LBT, octroi data unearths huge evasion

The Nagpur Municipal Corporation's (NMC) local body tax (LBT) department has unearthed its biggest-ever evasion case, netting a big pharmaceutical company. The department also caught an iron small scale industry for evading LBT. The two cases were unearthed by comparing data of octroi and LBT.

NMC sources told TOI many big traders evading LBT are set to come under the scanner in the coming days. "LBT department led by assistant commissioner Milind Meshram has consolidated data of octroi and started to compare returns of traders registered under LBT and their payments. The two cases unearthed on Thursday were the result of comparison of octroi and LBT data," sources said.

A senior NMC official told TOI that search and seizure operation was conducted on Nitika Pharmaceutical situated at Wanjara Industrial Area, Kamptee Road, and on Khandelwal Iron Udyog, Great Nag road. LBT squad seized documents from Nitika Pharmaceutical and found that chemicals worth Rs16.52 crore were imported into the plant between April 1, 2013, and January 31, 2014.

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NMC awaiting revision of LBT rates

The Nagpur Municipal Corporation (NMC) has asked the state government to revise the rates of local body tax (LBT) on seven products. However, the revision has been sought citing flaws in the rates schedule only. Though facing a huge revenue deficit, the civic body has not proposed revision in the rates of major products.

Municipal commissioner Shyam Wardhane had sent the proposal before December end and a decision from the state government is awaited. According to LBT bylaws, the civic chief has the powers to propose revision in LBT rates. He is supposed to submit it for approval before January 1 every year. Thus, the LBT rates of all products, excluding the seven products, will remain untouched in the 2014-15 fiscal.

Wardhane had sought revision in the rates of spices, coffee, vehicles accessories, ready-made curtains, fabric clothes, gunny bags and house furnishing cloth.

Chairman of tax consultative committee Girish Deshmukh told TOI the government finalized the LBT rates according to its wish and did not consult the civic body. "NMC had experience of octroi and good knowledge about product sales. Government did not make the rates of some products clear. NMC is studying and suggesting revision in these products," he said.

Giving reasons behind the proposed revision, a senior NMC official said traders were taking undue advantage of the vague LBT rates for some products. "Government finalized 0.5% of LBT on spices. There are two types of spices imported into the city, including whole spices and spices in powder form. The rates for the two types of spices were different in octroi. Therefore, LBT department proposed to fix LBT on spices in powder form at 2% and continue 0.5% on whole spices," he said.

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