What is the LBT?
LBT, or Local Body Tax, is a cess that the Maharashtra government wants to levy on the entry of goods for use and consumption within the jurisdictions of local municipal corporations. The state government will implement LBT to replace the traditional octroi.
How is LBT calculated?
Rate of LBT are between 0.50% to 8% on the value of goods purchased for consumption or sold. By multiply the rate with respected net value of goods imported in the city, you can calculate LBT of each good. By total of tax of each good, you can find total tax liability.
What is LBT accounting?
LBT Account . Means an escrow or other segmented custody account into which the Ceding Company may deposit assets in support of the Funds Withheld Account Balance should the Funds Withheld Account Balance exceed the Net Statutory Reserve for all Covered CO/YRT Policies excluding the LBT Product policies.
How do I pay my Local Body Tax?
The tax must be paid by the trader via the online portals, demand draft, cheque or cash to the designated bank account or at the special counters that have been opened by the civic body. If the LBT paid goods are exported outside the city, 90% of the LBT paid can be refunded subject to certain conditions.
Is LBT applicable after GST?
The Local Body Tax has been scrapped by the implementation of Goods and Services Tax (GST) from 1st July 2017.
When was LBT introduced India?
After the introduction of LBT in March 2013, various protests were organized by the trader’s associations in various cities in India, mostly Maharashtra.
When did LBT started in Maharashtra?
The LBT was introduced in the state in April 2013, replacing octroi in all municipal corporations except Mumbai. However, traders opposed it claiming it will burden them with unnecessary paperwork and lead to harassment at the hands of municipal inspectors who may take advantage of minor errors.
Is LBT applicable in Mumbai?
In Maharashtra presently L.B.T. is implemented in all the corporation except mumbai. In Navi Mumbai Corporation jurisdiction there was no octroi. However, cess (i.e. tax on entry of the goods in Local area for consumption, use or sale therein) was first introduced by state Government w.e.f. 01.06.
When was LBT introduced?
LBT was introduced in the year 2010 in Tier III cities. In 2013 it was made applicable to tier II and I cities. The table below shows where LBT was applicable and from when. The LBT stands cancelled as of August 1, 2015 in Maharashtra for most traders.
Is LBT applicable in Maharashtra?
LBT is applicable in entire Maharashtra except Mumbai Corporation. Thus, LBT is applicable in Thane . Hence, if your Turnover of purchases or sales within Thane Municipal exceeds Rs. 50 cr, then you will be required to pay LBT on all purchases made by you from outside Thane corporation.
Is LBT abolished in Maharashtra?
The LBT is now partially abolished as of August 1, 2015….Maharashtra.
|Municipal Corporation||LBT made applicable|