Sunday, July 20, 2014

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.

Q : Any guess when LBT shall be going?
A : My estimate is after election the new govt shall decide the fate of LBT

A kind request : Please don't encourage rumors. If a person says to you something about something. Ask him about the source of information before accepting his words.