Wednesday, August 5, 2015

Final Amendmends for LBT Removal from 1st August 2015

The Most Anticipated Notification by LBT Dealers has arrived. This Notification abolished LBT for dealers having turnover of less than 50 Crore. Yes you read it correct 50 CRORE.

Earlier the notification dated 23rd July, 2015 had stated that the dealers will have to apply for removal of their name from the list of dealers registered for LBT. This ire many small dealers as it meant ONE more compliance. This is no more the case with this new notification in Place.
(FAQ / Common question below)
The dealers with Turnover of less than 50 Crore will automatically be canceled. No need to apply for Cancellation.

Coming to technical questions:

Which period of turnover has to be counted ?

Turnover of Year i.e. April 2014 to March 2015 has to be counted.

What is included in turnover?

All purchase OR Sales. Hence, if either your Sale OR Purchases crosses the 50 Crore mark, then you become liable for LBT Payment.

So, if my turnover is less then 50 Cr, what do I need to pay now?

LBT is not applicable to you now. Since there is no substitute of LBT by VAT, you don't need to pay extra VAT. Yes, ONE less compliance to take care of. 
You can thank +Narendra Modi for Ease of Doing Business. :)

Thanks to +shardul sonawane for this Update.