CA Vikash Kumar Agarwal
Introduction:
It is announced by the Government of Maharashtra that Local Body Tax (LBT) will be implemented in the Pune, Pimpri-Chinchwad, Navi Mumbai, Thane, and Nagpur with effect from 1 April 2013.
Applicability:
- Goods brought inside the limits of respective Municipal Corporation for consumption, use or sale therein will attract LBT.
Registration
- A dealer registered under the MVAT Act having place of business within the limits of respective Municipal Corporation shall be deemed to be registered under LBT.
- A dealer having more than one place of business in two different corporations will have to obtain separate registrations of LBT in respective corporation limits.
For e.g.:- A dealer having places of business in PMC or PCMC will have to obtain separate registration for both municipal corporations.
- A dealer having multiple places of business within the same corporation limits shall be issued the copy of registration certificate for each additional place of business specified in application of registration. Needless to say that the registration number shall be the same for all the places of business within the limits of same corporation.
- The Turnover Limits for obtaining Registrations shall be as follows:
|
Rule |
Class of Dealer |
Taxable Turnover during year (of goods specified in Sch. A) |
Total Turnover (Taxable as well as Tax Free) during year (of all sales OR of all Purchases) |
Additional conditions |
| 3(1)(a) | Importer[1] | Sales>= Rs.5000 |
OR
purchases >=Rs.5000
>=Rs.1,00,000Value of all imports(taxable or tax free) during the year>=Rs.50003(1)(b)Any otherPurchases >=Rs.5000>=Rs.1,50,000 -3(2)Temporary – –
Carrying on business in city in any year on a temporary basis.
Records:
- Records to be maintained for each place of business for purchases and receipts of goods on transfer basis in the prescribed format of Form D as follows:
Purchase Register or Register of Goods
|
Sr No. |
Invoice No. and Date |
Name and address of Vendor |
Local body tax. Registration No. (If not local then place from where goods moved) |
Commodity |
Purchase value of goods/Processing charges chargeable to local body tax |
Local body Tax Payable |
|
(1) |
(2) |
(3) |
(4) |
(5) |
(6) |
(7) |
- Every registered dealer is required to issue Bill, Invoice or cash memo containing a certificate specified in rule 22(a) as follows :-
- “I/we hereby certify that my/our registration certificate under these rules is in force on the date on which the sale of goods specified in this bill/invoice/cash memorandum, is made by me/us and that the transaction of sale covered by this bill/invoice/cash memorandum, has been effected by me/us in the course of my/our business.”
Payment of LBT
- Every dealer other than the dealer who has opted for composition is liable to pay tax for every month within 10 days from the end of the month.
- Non-payment of LBT within the prescribed time shall attract interest @ 2 % per month or part thereof for first 12 months and thereafter @ 3 % per month.
Returns: Every registered dealer who has not opted for lump sum payment of tax is liable to file following returns:
- Half yearly returns for the 1st six months upto 30th September in Form E-I within 15 days from the end of the period; and
- Annual return in Form E-II within 15 days from the end of the year.
Exemptions:
- The dealer importing the goods, if exports the same within six months outside the corporation limits can claim 90% refund of LBT paid on such imports subject to conditions prescribed.
- If the goods sold and exported outside the city limits are received back on account of rejection within six months then no LBT shall be leviable on their return.
- Where a dealer receives the goods from outside the corporation limits for undertaking specified processes and the processed goods are sent back to the same party within six months then he is not liable to pay LBT subject to conditions.
- Where a dealer moves goods outside the city for carrying out the specified processes and re-imports the same without effecting any change in the product then LBT shall be leviable only on the value addition during the processing.
- The dealers engaged in job work receiving the goods from outside the limits of corporation are required to maintain the records as prescribed in return Form E-I & E-II.
- The dealer engaged in the export of goods outside India shall be exempt from the LBT in respect of the goods used for the purpose of such exports.
Compositions Scheme
- The dealers having turnover upto Rs.10 lakhs1 can opt to pay lump sum amount of LBT by way of Composition as per the table prescribed under rule 27.
- The dealer whose turnover is or will be below Rs. 10 Lakhs and desires to opt for composition has to file an application in Form R for obtaining the permission to pay lump sum payment of tax.
- Every dealer who has opted for compositions scheme is liable to pay tax within 15 days from receipt of order granting permission for composition scheme
- The dealers who have opted for lump sum payment of tax are liable to file annual return in form E-II within 15 days from the end of the year
Composition Scheme for Builders and Contractors:
- For builders and contractor a separate Composition scheme is prescribed as per Draft Rules under Notification dated 30th June 2012.
- As per this scheme, the builder or contractor shall have the option of making lump sum payment of LBT as follows:
|
Sr. No. |
Condition |
Rate |
|
1 |
For construction upto 4 Floors (without lift) | Rs 100 Per Sq. Meter |
|
2 |
For construction upto 7 Floors (with lift) | Rs 150 Per Sq. Meter |
|
3 |
For construction of high rise building (above 7 floors) | Rs 200 Per Sq. Meter |
- The contractor who opts for such composition scheme may make the payment of LBT to the extent of 50% in advance on applying for grant of commencement certificate for such construction.
Any dealer or person undertaking any work within the area of Municipal Corporation shall have the option of either paying LBT on the value of goods imported into the limits of the City for undertaking such works or alternatively paying the said tax on lump sum basis at 0.25% of their total amount of contract value.
————–
CA VIKASH KUMAR AGARWAL
CHIEF FINANCIAL OFFICER
THE KOTHARI WHEELS
We are in construction business. in f.y 13-14 for 1st half year we paid lbt on regular basisi & then under composit scheme. we have filed the LBT return for f.y. 2013-14. Our LBT no is not mentioned on the composit schemen chalans. hence we have not shown that lbt in 13-14 & handed over the xerox copies to lbt officer. Now once we opted the composite scheme how can we file the return as we have paid lbt under composition scheme & our architect have not mentioned our LBT no on it.
We have opt composition scheme of LBT for construction business & we have purchase material from unregistered dealer then i want to know who is liable to pay LBT or shall I deduct it from his payment paid to the corporation
We are turnkey interior contractor, if we quote for project at Thane then will we be liable to pay LBT & how much?
I have done agreement to sale of shop in Dec-2012 at Nasik , so do I need to pay LBT and if yes how much? or in what manner we are liable to pay as we have paid all taxes to builder.
my dad has purchased a flat at kasarwadavli in d year 2006 and dat time d builder took money from him for registration but he just gave us notary of dat flat. and dad was not knowing abt it and we shifted at dat place in 2011 and we come to know abt it now. so my question is do we have to pay lbt ? coz d builder asked to pay lbt to my dad
I have purchased a new shop in may 2013 at Nasik, so do I need to pay LBT and if yes how much? or in what manner we are liable to pay as we have paid all taxes to builder.
i have done a agreement to sale of a flat in pune in dec 2012
now i am taking possetion of the flat as it is completed hence i have to do a sale deed , do i have to pay lbt , if yes how much if agreement cost is 3500000
pls reply
thank u
I WANT TO REGISTERD MY FLAT NOW 18/06/2013 SHALL I HAVE TO PAY ?
I have purchased a new flat in may 2013 at Nasik, so do I need to pay LBT and if yes how much? or in what manner we are liable to pay as we have paid all taxes to builder.
I purchased underconstruction flat in Nallasopara in 2012. I need to know that do I have to pay LBT on it because builder has not yet informed me regarding this. And If yes, then what is the percentage amount?
Does he add this cost into PSF rate or he charge additionally?
contractor who opted for composite scheme when to pay 0.25% LBT ?After recept of payment from client or certification of the bill?
as the contractor is working at different sites,which is supposed to be place of business and where the registration to be taken?
Why builder is taking LBT from flat owners?
Earlier, they used to pay octroi, but didn’t take it from flat owners..
But now, they re taking it from flat owners.
This is wrong.
Hi,
Does LBT(Local Body Tax) revised any Vat and Service Tax?
I booked flat in April 2011 in Pune(under Pune municipal corporation) and in May 2013 i will get possession.
But now builder requesting to pay 1% extra tax because of LBT.
I already paid vat and service tax to builder.
Please guide for the same
Best regards
arvind
If buders work is unders construction and 50% work is complete then inthat case what will be the procedure of LBT payment
Dear Sir
There is no Exmeption for goods Imported and Sold outsid city limits. Exemption is for goods sold outside limits and then imported within six months.
For Imported and then sold outside City Limits one has to go through Refund route
please clarify
Shankar Patil 9371209751
Dear Sir
There is no Exmeption for goods Imported and Sold outsid ecity limits. Exemption is for goods sold outside limits and then imported on within six monith days.
For Imported and sold one has to go through Refund route
Thanks for this article, it was quite insightful. I however have one more question- I am planning to buy a building (it was build some 4 years back) from the private individual (and not from any builder/constructor). Will I have to pay LBT during the building registry?
I appreciate your reply. Thanks in advance.
maharashata budget announced? when? how LBT LEVIED WITHOUT BUDGET OR NOTIFICATION?