Tuesday, January 3, 2017

LBT Introduced in Panvel

It’s not a very Happy New Year 2017 for the businesses in the Panvel Municipal Limits. The Panvel Municipal Corporation vide it’s GR Dt. 29th December 2016, has decided to levy the Local Body Tax on all Use, Consumption and Sale happening in it's territories.

The schedule of rates has also been prescribed by the local body ranging from 0.5% to 8% depending on the commodities one is dealing in. Having said that, most of the commodities shall be hit at 1% flat rate.

Although no clarification regarding the limit of turnover for one to get covered in the LBT is mentioned in the above GR issued, the same shall be prescribed to be Rs. 50 Crores and above as per what the Municipal Corporation of Navi Mumbai has done.

This means large factories, warehouses, trading zones, etc established in Panvel and connected areas of the Taluka of Panvel like Taloja, Javahar Industries and even Panvel Industries, set up by corporates or multinational companies wherein the goods move inside the territory of Panvel shall and having the turnover to be prescribed soon shall get hit.

This has to be done on basis of the value of the material moving into the territory in any form and hence even keen track of branch transfers from it’s own warehoused located out of Panvel.

This may result in the increase in rates of automobiles which were cheaper as compared to new Mumbai due to LBT being present in Navi Mumbai, even housing and commodities of daily consumption like cooking gas & CNG as well to the extent of charge of LBT on the same.

These dealers falling in the net of LBT, shall be required to take one more registration, pay taxes and also file returns with the local body in this regard in the periodicity prescribed.