==This article is incomplete and will be completed shortly. As this topic is currently under govt. review, it may contain information which may be outdated.==
This article will cover the facts and myths about the Local Body Tax (LBT) स्थानिक संस्था कर in Mumbai City / Maharashtra.
What is Local Body Tax (LBT) स्थानिक संस्था कर?
- Local body tax is a lumpsum amount charged on the value of goods that enter the city or Local Limits specified
- The local body tax is payable within 40 days of bringing the goods into the city
- It will be effective from 1-Oct-2013 in Mumbai City.
- Sales and purchase details to be maintained in a prescribed software.
- Past data must be stored for a period of 5 years
Whom is it applicable to? What are the limits?
Local Traders
- having an annual income of Rs 4 lakh
- must register for LBT.
Traders importing goods
- having an annual income of Rs 1 lakh
- must register for LBT.
Traders with annual turnover of 10 lakhs and less who wish to make lump sum payments need not file returns
How is it different from Octroi?
- Octroi is applicable for goods which are for sale, use or consumption, which enter the local municipal limits
- Octroi is collected in cash at the entry points to the city
How will it benefit?
- LBT will reduce the delays that used to take place at the octroi check nakas, as trucks will no longer be stopped
- The cost of collecting LBT is significantly lower than that of Octroi, saving large amounts of public money
- Introduction of LBT will reduce corruption that used to take place due to grey areas of the Octroi system
- E-filing of LBT Returns will help in smoothen the process and also make it more transparent