Nagpur: Nagpur Chamber of Commerce hails the decision of state government to waive LBT on majority of traders from August 1, president of Nagpur Chamber of Commerce, Kailash Jogani said here recently.
Despite giving assurance of complete abolition of Local Body Tax (LBT) in the Municipal Corporation area from August 1, the BJP Government has issued a draft notification that has waived off the LBT for traders with an annual turnover of less than 50 crore, Jogani added.
In Nagpur city approximately 70-75 establishments have the turnover above 50 crores which includes oil companies, automobiles and home products.
As the State government has assured local municipal bodies that they will get compensation at par with the LBT losses, as such local bodies are not at a loss and dont require to raise any revenue in lieu of loss of revenue from LBT.
Kailash Jogani though hailed the decision of government to waive LBT on more than 98% traders; yet he objected to formalities of cancellation of certificate.
Instead of cancellation of thousands of certificate, it is better to insist on a few new registrations for approximately 70 per cent traders having turnover of more than 50 crores.
As per draft notification issued by the State government traders with more than 50 crore turnover are required to register themselves, while those with a turnover less than 50 crore for financial year 2014-15 should apply to civic body for removing their names from the list of taxpayers and the commissioner thereafter holding inquiry shall cancel the certificate of registration.
This means before cancellation, the dealer have to comply with the provisions as applicable to registered dealer of the LBT, Kailash Jogani added.
Nagpur Chamber of Commerce Ltd demands to the state government to finalize the draft notification and issue a final notification by giving clear cut instructions to the dealers having turnover below 50 crores not to charge or collect LBT from consumers.