Saturday, 1 August 2015

LBT Amnesty Scheme extended till 15th Aug.15

Revenue minister Eknath Khadse said the decision will give relief to 99.85 per cent of traders in Maharashtra and the government will provide financial aid to the municipal corporations which would lose revenue and may not mop up their expected income by the end of the year. Chief Minister Devendra Fadnavis said in the Assembly that after scrapping LBT, the government will have to pay Rs 4,210 crore in grants for August 2015 to March 2016 period to municipal corporations. File Photo dna Research & Archives Maharashtra government on Friday informed the Legislative Council that the controversial Local Body Tax (LBT) would be abolished by August 1 for traders with a turnover of less than Rs 50 crore in 25 municipal corporations. Revenue minister Eknath Khadse said the decision will give relief to 99.85 per cent of traders in Maharashtra and the government will provide financial aid to the municipal corporations which would lose revenue and may not mop up their expected income by the end of the year. "In Thursday's cabinet meeting, the government decided to give relief from LBT to traders. We have also decided to provide financial aid to those corporations which do not generate intended income due to the abolition of LBT. The municipal corporations will also get the income generated from the stamp duty," Khadse added. The minister said the state government will take into account 5-year average income of municipal corporations, and if the amount earned from the stamp duty is less than that of the peak annual income they will get the difference from the state government. Finance minister Sudhir Mungantiwar said that in lieu of LBT, the government will impose surcharge on the Value Added Tax (VAT) till the Goods and Services Tax comes into effect. LBT has replaced octroi, but trader community is opposed to it because of the paperwork it entails. "Octroi will continue in the jurisdiction of Mumbai municipal corporation till GST is implemented," he added. Chief Minister Devendra Fadnavis said in the Assembly that after scrapping LBT, the government will have to pay Rs 4,210 crore in grants for August 2015 to March 2016 period to municipal corporations (to make up their loss). The state had made a provision of Rs 2048.44 crore through supplementary demands for the first five months. According to an official from the finance department, LBT collection from traders above the Rs 50-crore slab is expected to be Rs 10,568 crore.  by @UC Browser

Sunday, 26 July 2015

Draft rules for LBT above 50cr

State government has recently published draft rules for LBT for exempting transactions below 50crore

Friday, 5 June 2015

Local Body Tax (LBT) Amnesty Scheme- A relief

Sub: Amnesty Scheme for Local Body Tax (LBT)
 
Dear Sir/Madam,
 
Government of Maharashtra has issued notification for Maharashtra Municipal Corporations Amnesty Scheme Local Body Tax  (LBT) Amnesty Scheme, 2015 on 3rd June, 2015.
 
Salient features of Amnesty Scheme are as under –
1.       Applicability of Amnesty Scheme –
a.       Registered as well as unregistered dealers i.e. all dealers
b.      For period starting from implementation of LBT to 31st Mar, 2015.
2.       Amnesty Period – 3rd June, 2015 to 31st July, 2015
3.       Dealer should get registration (if not taken earlier) and file returns to avail benefit of the scheme.
4.       Entire amount of interest and penalty will be waived in case payment of total principal Tax amount is done in following situations –
a.       Dues payable as per any order passed upto 31st May, 2015 for the period upto 31st Mar-2015.
b.      If trader is in appeal then unconditional withdrawal of appeal.
c.       If dealer has not filed return and now return is filed along with payment of tax.
d.      In case original return is filed and dealer accepts additional tax by paying such tax alongwith furnishing of revised return.
e.      If dealer has already paid taxes and filed returns before coming in to force of amnesty scheme, then no interest will be levied for late payment of tax.
5.       No refund shall be granted as a result of amnesty scheme.
6.       There will be 10% random assessment of traders under amnesty scheme and such assessments must be completed by 31st December, 2015 and thereafter there is no tax, interest and penalty liability on the dealer.
7.       Separate application for amnesty scheme for each year should be submitted to the commissioner of corporation.
 
Impact of the scheme –
Government of Maharashtra has covered all types of dealers i.e. unregistered, registered but not paid taxes, or short payment of taxes earlier or late payment of taxes paid in earlier period for availing amnesty scheme.
In LBT rules there are heavy penal & interest provisions are prescribed like –
In case of unregistered dealers – 5 times of tax amount
Registered dealers but willful default in tax payment – 2 to 3 times of tax amount
Interest on late payment of tax – 2% per month
 
Looking at penal provisions in LBT rules, this amnesty scheme has given great relief to all types of dealers.
Therefore large number dealers/ traders/ industrial establishments / service providers ( Bank, Schools, Insurance companies etc) / e-commerce companies / builders and developers / contractors / software companies may take benefit of this LBT amnesty scheme.
 
Please feel free to contact for any further information required.
 
Thank you,
Yours Faithfully,
CA Amit Shah
For Amit Shah and Co.
Contact –
For Pune and PCMC
020 – 25421082
7710037422
For Rest of Maharashtra
0231 – 2656520
9422620771
8421887753
E-mail – ca.amitshah@icai.org
               caravi.shinde@icai.org
               yuvraj.shahaji.kapshikar@icai.org
 
 

Sunday, 1 February 2015

Maharashtra government formed committee for changes in factories act

Govt to amend 20 labour and industrial laws http://timesofindia.indiatimes.com/city/nagpur/Govt-to-amend-20-labour-and-industrial-laws/articleshow/46080490.cms Shared from Google News & Weather

Thane Corporation compel to pay LBT for new construction

'Construction only after builders clear LBT dues' http://timesofindia.indiatimes.com/city/thane/Construction-only-after-builders-clear-LBT-dues/articleshow/46058501.cms Shared from Google News & Weather

Kolhapur corporation eye on Medical business

KMC slaps notices on 400 clinical establishments to register and pay LBT http://timesofindia.indiatimes.com/city/kolhapur/KMC-slaps-notices-on-400-clinical-establishments-to-register-and-pay-LBT/articleshow/46075942.cms Shared from Google News & Weather