Instead of these two taxes, it could bring in a surcharge on value added tax, said people. It gives great pleasure and satisfaction to place the 1st edition of the book local body tax manual under maharashtra municipal corporation act lix of 1949 as amended upto 251020 alongwith commentary on l. And whereas, the government of maharashtra considers it expedient to revise the rates of. The pune municipal corporation pmc has published the rates for local body tax for various commodities. This is the exclusive state where octroi is levied. Lix of 1949 read with sections 152p and 152q thereof, and of all other powers enabling it in that behalf, the government of maharashtra hereby directs that, a the rates and the extent to which the local body tax. Secondly, if your material is not entering in pune municipal limit then you have only to pay octroi charges to the bombay municipal corporation. Maharashtra budget analysis 201617 the minister of finance of maharashtra, mr.
Municipal corporations local body tax amendment rules, 2010 the lbt rules the maharashtra state finance minister during his budget speech for the year 201516, proposed abolition of lbt w. Mar 12, 2018 the confederation of indian industry has welcomed the imposition of local body tax, which came into effect from april 1, 20, in thane, navi mumbai, nagpur, pune and the pimprichinchwad municipal co. Schedule b is schedule for tax free goods on which no local body tax is leviable. Go live of online filing of appeal applications along with appeal payments under vat and cst act. Jan 24, 2018 the maharashtra government is looking at completely scrapping the local body tax and octroi across the state. Maharashtra will abolish its contentious local body tax lbt from 1 august, state finance minister sudhir mungantiwar announced on wednesday while presenting the state budget for the 2015. Lbt was introduced in 2009, but major corporations levied it in 20. Local body tax to be scrapped if sena comes to power. The content available on the website is provided by pune municipal corporation and all the information available on this website is authentic. Nabhi income tax guide 40% off mini ready reckoner 20122014. Mar 18, 2015 the bjpled maharashtra government on wednesday announced that the local body tax lbt on traders would be abolished by august 1 in the first ever budget presented by a bjp finance minister in. Taxable goods are covered under schedule a and on these goods local body tax is leviable at the rates mentioned against each entry of this schedule, on entry of these goods in nmmc area for consumption use or sale.
How many types of taxes are there and what are they. Lxv of 1958, and in supersession of the maharashtra motor vehicles tax rules, 1940, continued in force by virtue of the section 24 of that act, the government of maharashtra hereby makes the following rules, namely. As per the maharashtra municipal corporations act, 1949 under section 2 31 local body tax defined as the tax applied on the entry of goods into the limits of the city, for consumption, use or sale, levied in accordance with the provisions of chapter xi b, but does not include cess as defined in clause 6 a and octroi as defined in clause 42 1. Notification regarding change of rate dated 03022014. Local body tax registration consultants in faridabad find the best lbt agents, municipal corporation consulting firms for property, builders, cars, gift deeds and get their service chargesrates, contact details via sulekha. For conceptual clarity on gst refer systematic approach to gst by s k mishra, fca which is the most uptodate and comprehensive book on gst available in india as on date.
Real propaganda behind imposing lbt local body tax in. However, collection of octroi is done at the entry point in the city. Maharashtra to abolish local body tax from 1 august. Property registration department continues collecting 1% local body tax. In march 20, in a joint session of the maharashtra legislative assembly and the. Kindly note that the offices of return and recovery branches are shifted. At present octroi is the main source of revenue of municipal corporations in maharashtra. What is lbt local body tax and why is it being opposed in. What is local body tax and how it is different from octroi. Lbt was introduced in maharashtra under the provisions of maharashtra. Tax is imposition financial charge or other levy upon a taxpayer by a state or other the functional equivalent of the state. Description of goods liable to payment of local body tax groupi name of the goods 2 articles made of precious metals of fineness not less than fifty per cent, whether or not containing precious stones, semi precious stones, diamonds or pearls whether real or cultured and to which entry 105 in schedule a group il does not apply. The maharashtra government has said it would ensure that the goods and services tax gst does not hamper financial autonomy of local self government bodies, as. Local body tax lbt means taxes on the entry of goods into a local area for consumption, use or sale.
This requires detention of vehicles which result in wastage of fuel and time. The state government may, after considering the proposal of the commissioner in this behalf, and by notification in the official gazette, specify various categories of goods on which no local body tax shall be leviable. Local body tax lbt, to be imposed in maharashtra from october onwards and will be valid on the sale or consumption of certain products. In exercise of the powers conferred by section23 of the maharashtra motor vehicles tax act, 1958 bom. Brihan mumbai and other local authorities for loss of revenue arising on account of abolition of octroi and local body tax, due to implementation of the goods and.
Octroi is main source of revenue for the corporation. Apr 09, 20 local body tax is an entry tax imposed on goods brought into a corporation area from outside that area for consumption use sale. Now pay tax under ptec and ptrc together in one challan. Rules the maharashtra tax on the entry of goods into local.
Bjp abolishes local body tax in maharashtra the hindu. In exercise of the powers conferred by sub section 1 of section 152t and of all other powers enabling it in that behalf, the government of maharashtra, made rules vide noti. Maharashtra is the only states that impose the lbt. Taxation system in india india has a welldeveloped tax structure with clearly demarcated authority between central and state governments and local bodies. Local body tax lbt is a levy on the entry of goods into a local area for consumption, use or sale therein.
Local body tax lbt under maharashtra municipal corporation act lix of 1949 chargeability of lbt. The government also announced that lbt would be introduced in mumbais civic body, where. No section number section name 1 introduction introduction 2 1 short title 3 2 definitions 4 certificate of registration 3 5 cancellation of certificate of registration 4 6 5 payment of tax 7 6 method of payment of tax, interest and penalty. Local body tax lbt local body tax lbt as applicable to pune municipal corporationas applicable to pune municipal corporation presented by a. Is local body tax still applicable in maharashtra after. And whereas, the government is of opinion that for the better recovery of pending local body tax, it is expedient to amend the said. Central government levies taxes on income except tax on agricultural income, which the state governments can levy, customs duties, central excise and service tax. Oct 07, 2017 nationalist congress party ncp on thursday said it was not against the imposition of local body tax but wanted maharashtra chief minister prithviraj chavan to address the concerns of trading. As of 15 th august, 2015, the lbt is partially abolished features of local body tax. Department of goods and services tax department of goods.
Pune municipal corporation publishes rates for local body tax. Keeping up its poll promise, the bjpshiv sena government in maharashtra today proposed to scrap the local body tax lbt from august 1 in its maiden budget that largely spared the common. Request pdf effects of local body tax lbt on traders local. Cii welcomes local body tax in maharashtra the hindu. Local body tax in maharashtra important points bankbazaar. Taxation system in india doing business in maharashtra. Notification for maharashtra muncipal corporationlbt rules,2015. This tax is imposed on traders by the local civic bodies of each citytownarea and are different in each place. Maharashtra lbt manual local body tax 10% off under maharashtra municipal corporations act lix of 1949. The maharashtra tax on the entry of goods into local areas. Local body taxlbt, nagpur municipal corporation nagpur. Property registration department continues collecting 1%. The act empowering local bodies to tax lbt is bombay provincial. And regarding your second query if you are purchasing the material from the outside lbt zone in that only scenario you can recover the lbt cost from your customers.
The traders can check the lbt rates on the official website of pmc. Local body tax, popularly known by its abbreviation as lbt, is the tax imposed by the local. Effects of local body tax lbt on traders request pdf. Local body tax achievement or failure for maharashtra. Lix of 1949 read with sections 152p and 152q thereof, and of all other powers enabling it in that behalf, the government of maharashtra hereby directs that, a the rates and the extent to which the local body tax shall be levied by the. Read more about maharashtra to roll back local body tax on business standard.
Local body tax is a tax levied by local civic bodies on the entry of goods into a local areas town, city or state limits for consumption, use or sale therein. Local body tax, popularly known by its abbreviation as lbt, is the tax imposed by the local civic bodies of india on the entry of goods into a local area for consumption, use or sale therein. All information about local body tax in maharashtra. Rules the maharashtra tax on the entry of goods into local areas act, 2002.
The local body tax lbt has been abolished for most traders in 25 of the municipal corporations in maharashtra, including those of thane, pune and kalyandombivali. Local body tax abolished for most traders in maharashtra. Local body tax main features of lbt lbt is a tax imposed by the local authority municipal corporation mahanagar palikaon goods imported in the city for the purpose of consumption, use or sale therein. Chinchwad municipal corporations from today, replacing it with local body tax lbt. Maharashtra to roll back local body tax business standard news. Local body tax attempts to speed up goods movement. Honourable members must be aware that the local authorities have lost the power to collect octroi and local body tax due to implementation of gst. Jan 14, 2011 maharashtra professional tax notification pdf download please login cite. Documents required for registration of local body tax lbt. Maharashtra municipal corporation local body tax amnesty scheme, the 2015 hereinafter referred to as the amnesty scheme, from 15th august 2015 to the 31st march 2016. Lbt stands for local body tax, which has been introduced in most of the municipalities and corporations in maharashtra, in lieu of octroi or cess.
Power of state government to revise rates of local body tax. State and local taxes and levies, including sales tax, purchase tax, octroi, cess, etc. Local body tax to be abolished from august 1 for most traders revenue minister eknath khadse said the decision will give relief to 99. In fact it is not levy but it is forcibly collection at the check post. Maharashtra vat compilation of the maharashtra value added tax act 2002, rate schedules, rules, forms and notifications. It is a levy under entry 52 in the state list of schedule vii of the constitution of india, on the entry of goods into a city limits for the purpose of consumption, use or sale therein. This type of tax is imposed on any good that enters a local area for use, sale or consumption. Problem of traffic, wastage of fuel, pollution, time consuming procedure at the octroi check post, corruption etc. Gst wont affect financial autonomy of local bodies. Lix of 1949 the maharashtra municipal corporations act. Maharashtra professional tax notification pdf download. Determination of categories of goods for local body tax.
The analysis shall be very helpful to all business persons. Section 231a local body tax means a tax on the entry of goods into the limits of the city, for consumption, use or sale therein, levied in accordance with the provisions of chapter xib, but does not include cess as defined in clause 6a and octroi as defined in clause 42. Thakar advocate present position at present municipal corporations in maharashtra levy octroi. Shiv sena udhhav thackeray assured people tonight that if his party is voted to power in the maharashtra assembly polls, it would abolish local body tax lbt imposed on municipal corporations, by the outgoing congressncp government. The embattled congressnationalist congress party alliance government in maharashtra has in principle taken a decision to roll back the controversial local body tax lbt which replaced the vexed octroi duty in civic bodies. Bombay provincial municipal corporations act, 1949 bom.
The tax is imposed based on the entry 52 of the state list from the schedule vii of the constitution of india which reads. Indian traders are required to pay lbt to civic bodies with rules and regulations varying from state to state. Local body tax commonly abbreviated as lbt is a tax which is imposed by the local civil bodies of india. The maharashtra government has formally abolished octroi in thane, navi mumbai, nagpur, pune and pimpri. Local body tax on entry of various categories of goods into the limits. Sudhir mungantiwar, presented the budget for maharashtra for the. Property registration department continues collecting. Professional tax in maharashtra pdf hi all, i have found soft copies of maharashtra state tax on professions, trades, callings and.
If you purchase the goods within lbt zone and sell outside maharashtra state then there will be no local body tax. Documents required for registration of local body tax or lbt amazing maharashtra. Kishor lulla, has written a very appreciative article on local body tax in maharashtra. Local body tax is an entry tax just like what we have customs for india, we have lbt for municipal corporation. Maharashtra may scrap octroi, local body tax the hindu.
Dealers, traders and importers of goods are liable to pay lbt. Maharashtra local body tax manual lbt manual 10% off. Lbt payment challan ready format in excel template. Local body tax is an accountbased cess collection for every raw material used or imported into the citys limits by all businesses, traders. Provisions of section 99b not to apply to local body tax to be first levied. It was proposed in the state budget as a replacement for octroi, as per the government directives to the bmc. At the end of february 2018, revenue under gst has been garnered at rupees 45,886 crores. Local body tax lbt tax is imposed by the local civic bodies of india on the entry of goods into local area for consumption or use or sale, it is to be paid by the trader to the civic body and the rules and regulations differ for different states. Block will be used to display browser versions to be supported by portal. In the state, 5,32,000 tax payers are newly registered taking the number of tax payers under gst to,62,000. Corporation may impose ltb on the entry of goods purchases into the limits of the city for consumption, use or sale therein in lieu of octroi or cess, if so directed by state govt. It is taxes on entry of goods, which trader has to pay periodically. Bombay provincial municipal corporations act, 1949. In maharashtra octroi tax has been removed, now there is some.