Friday, July 18, 2014

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.

A senior NMC official told TOI that LBT department was forced to introduce such system due to non cooperation from the traders. "Department has been gathering information and scanning documents of goods imported to city at entry points since last three months. Data collected has revealed that 32% of total goods being imported to city belong to traders not having LBT registration," he said.

According to NMC's data, the civic body had to face revenue deficit of over Rs150 crore in the last fiscal due to LBT evasion. Revenue of only Rs85.56 crore, excluding stamp duty and transit pass charges, were recovered between April 1 and July 4 this fiscal, a deficit of around Rs35 crore.

Confirming the development, assistant commissioner (LBT) Milind Meshram told TOI that decision is likely to be introduced at all major check posts. "LBT Rule 9(1) says a dealer liable for registration cannot do business in the city without obtaining LBT registration. Henceforth, the department will initiate verification of invoices and consignments at major entry points. Entry of goods will not be allowed into city limits without proper documents," he said.

Meshram added that there is large-scale LBT evasion at railway station. "Many consignments are being imported to city through railways either without billing or improper/fake billing. One such consignment worth about Rs2.5 lakh was brought and delivered to M/s Guru Amardas Collection, a ready-made garments dealer at Deoghar Mohalla, Ganjakhet, on July 5. Search operation revealed that the trader imported goods worth around Rs25 lakh in this manner even in 2013-2014. The trader used to import goods in different names. The trader paid some amount of LBT, at .5% instead of 2%. Necessary action has been taken against the trader," Meshram said.

Source : TOI