CA Mukund Abhyankar
This is rejoinder to our earlier Note regarding Turnover based Exemption for LBT in Maharashtra.
In order to settle at rest confusion regarding meaning of Turnover for eligibility under LBT exemption, now a clarification has been issued by Urban Development Department (UDD) vide Notification No. LBT. 2015/C.R. 42/UD-32 dated 15 September 2015 in Maharashtra. The UDD has stated that the turnover of the dealer within the municipal corporation area is required to be considered.
The Maharashtra State Government had earlier announced vide notification dated 1 August 2015 that dealers with turnover of not less than INR 50 Crores shall only be liable for registration. Subsequent to this announcement, doubts were raised by various Dealers’ Association regarding the determination of turnover i.e., whether turnover within municipal corporation area is to be considered or turnover in relation to the business of the dealer within the entire State of Maharashtra. In this regard, the concerns of the Dealers Associations have now been addressed.
View of the Law and Judicial Department (LJD) of the Maharashtra State Government was sought. They have thus clarified that the turnover of the dealer within the corporation area is required to be considered and not the turnover for the entire State of Maharashtra.
Further, in order to assure the municipal corporations on compensating them for the loss of revenue from LBT, a 1 percent surcharge on stamp duty collections has been proposed to be levied.
The clarification issued by the UDD puts to rest the uncertainty which had arisen over the determination of the turnover.
We are in the process of gathering further details w.r.t. the points clarified under this Notification and will come back to you with more information as soon as the same becomes available.
We request you to kindly send an email to us on the mail id mbabhyankar@gmail.com for any clarifications on the matter.
Author Bio
Dealer started business in LBT area, and does not get registration in prescribed limit.officials raid the premises and it is found that dealer imported machinery on dt.29.04.2015 amt Rs6707346 in fy.14.15.dealer is regd in shop & establishment in 12.08.2014 & regd in vat.also in 03.04..2015 whether dealer is liable for LBT tax and penalty two times or five times.( request pl send as early )
Is LBT to be paid only on principal inputs or it has to be paid on office consumables like stationery?
Sir
Please tell us about turnover means for LBT Registration for particular unit situated in particular corporation,
We may consider the sale OR purchases made within the corporation and no transaction outside the corporation .
OR
we may have to consider the sale or purchases made within as well as out side the corporation also.
Sir
Please tell us about turnover means for LBT Registration for particular unit situated in particular corporation,
We may consider the sale OR purchases made within the corporation and no transaction outside the corporation .
OR
we may have to consider the sale or purchases made within as well as out side the corporation also.
Pls Clarifly about LBT & Cess both are same. if my co.turnover morethan 50.Cr more than 5 State. so what to do.
At Present how much LBT/ OCTRIO RATE IS FOR MUMBAI. PLEASE SEND THE UPDATED NOTIFICATION.
If you have pdf of notification LBT. 2015/C.R. 42 / UD-32 dated 15 September 2015 for more clarification.
Please provide me Urban Development Department (UDD) vide Notification No. LBT. 2015/C.R. 42 / UD-32 dated 15 September 2015 – See more at copy in pdf