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    Published On : Tue, Apr 30th, 2013
    Latest News | By Nagpur Today samratnt

    LBT beneficial to both traders, citizens, says NMC Commissioner Vardhane with figures

    The NMC top boss appeals traders to call of their agitation, compares figures of Octroi duty and LBT

    Nagpur Today:
    The Nagpur Municipal Corporation Commissioner Shyam Vardhane on Tuesday (April 30) strongly asserted that the Local Body Tax (LBT), in place of Octroi duty, enforced from April 1 by the Maharashtra Government, is actually beneficial for both traders and consumers. He said that some people with vested interest are misleading the traders on LBT issue and traders, too, falling prey to them.

    The traders, business houses and industries have resorted to total bandh for the past 10 days intensely protesting the decision of Maharashtra Government unnecessarily, Vardhane added. As per the Government Resolution (GR), registrations on LBT have been made mandatory and the NMC has dispatched the necessary forms for registrations to all traders and other concerned establishments. The traders have to submit their forms to NMC for LBT registrations. After submitting the forms, the traders would be issued registration certificates. After getting the LBT numbers, the traders who have purchased various goods in April from different cities, would have to prepare assessments about the LBT and deposit the amounts in NMC’s selected bank accounts from May 1 to May 20, Vardhane elaborated. He gave information on LBT issue as follows:

    1) Vardhane informed when the NMC had started collecting Octroi duty, the trucks laden with various goods had to stand at octroi posts for hours together. It was noticed if the papers of goods laden trucks were not found valid then the situation turned from worse to worst.  And flying squads of NMC many times were stopping the trucks for checking purposes, he added. He reminded the traders that opinions and suggestions were sought from them before enforcement of LBT. Vardhane again reiterated that the LBT was in the interest of traders as well as citizens in comparison to Octroi.

    2) REGISTRATION: The process for registration is simple. Traders registered under VAT have to submit applications for LBT registration by attaching only the VAT certificate. No other document is necessary.

    3) BENEFITS OF REGISTRATION: The traders have to maintain accounts of purchased goods and after self assessment the amounts have to be deposited within 40-50 days. The information about annual transactions has to be submitted along with application for registration. This will not any difficulty.

    4) LBT APPLIES TO: That the system by which the Octroi duty was collected same system would be applied for collection LBT. The traders would not have to pay LBT once the registered traders who have paid LBT on goods purchased and repurchase  of goods again. Previously, the traders had to pay octroi duty on goods purchased from outside the city limits. However, the LBT registration is must for only those traders who purchase goods worth Rs 3 lakh or taxed goods worth over Rs 5000 or goods worth over Rs 5000 purchased from outside. The LBT would not apply to those traders who purchase goods within the city.

    5) NO LBT BURDEN ON CITIZENS: LBT is a replacement of Octroi. No additional tax is levied. Due to LBT, the prices petrol, diesel, sugar, gold, silver, medical equipments, electronic goods etc. have become less and would be cheaper in comparison to Octroi duty.

    Previously taxes on various goods were as follows:

    Name of GoodsOctroi Duty in Rs. LBT in Rs.
    Petrol4.503.50
    Diesel4.503.50
    Sugar3.002.00
    Electronic goods4.003.50
    Home Cylinder4.502.00
    Gold-Silver1.000.10
    Pressure Cooker5.002.00
    Glucon D5.002.00

     

    Finally, Vardhane said, after talks by traders with the Chief Minister Prithviraj Chavan, some corrective steps have been taken that will give much relief to traders like LBT limit has been increased from Rs 1 lakh to Rs 3 lakh, Rs 1.50 lakh to Rs 4 lakh, the period for keeping record of transactions has been made 5 years instead of 10 years, the penalty amount has also been decreased from tenfold to fivefold. There is also room for further relief in future, Vardhane asserted. He appealed the traders to accept LBT happily.

    Meanwhile, Assistant Commissioner of Octroi (LBT) Department, Mahesh Dhamecha has informed that 1050 traders have registered themselves for LBT. Similarly, 28,500 traders are paying VAT and the process for allotting LBT number to them has been initiated. He further said the Government has decided to fix the date for paying LBT as 20th day of every month instead of 10th. The final draft on LBT would be finalized by the Government by May 15.

    Dhamecha informed that till now liquor dealers, petrol dealers, jewellers and multinational companies have shown positive attitude as far as LBT is concerned


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