LBT CONSULTANT Amit shah & co.
LBT is the tax on entry of goods for use / consumption within areas of the
local civic bodies. It is a self assessment or account based method of paying
local tax, where the businessmen or trader himself declares his tax liability.
Unlike in the octroi regime, trucks carrying goods will not be subjected to
physical checking. .
Definitions
& some Important Terminologies (related to LBT)
Goods: As per section 2(25) of the Act,
“goods” includes animals. It also includes
goods of intangible or incorporeal nature. Any goods imported or bought
into city limits of a corporation by way of purchase, stock transfer,and
job work or by gift for consumption, use or sale will be subject to levy of
LBT.
Dealer: As per section
2(16A) of the Act, dealer means any person who whether
for commission, remuneration or otherwise imports, buys or sells any
goods in the city for the purpose of his business or in connection with or
incidental to his business and shall include auctioneer, broker,commission
agent, factor, society, club, central government, state government;From
reading the definitions of goods, dealer and business, which interprets
in my view that the professionals like lawyers, doctors,Chartered
Accountants, architect, etc. are also covered under the ambit of LBT.Exception
in the definition of dealer: Any individuals who imports goods for his exclusive
consumption or use and a department of State & Central Government not engaged
in business shall not be a dealer.
Business: As per section
2(5A) of the Act, business to “include –
a)
Any trade, commerce, profession, consumption or manufacture or any
adventure or concern in the nature of trade, commerce,profession,
consumption or manufacture whether or not such trade,commerce,
profession, consumption, manufacture, adventure orconcern
is carried on with a motive to make, gain or profit and whether
or not any gain or profit accrues from such trade,commerce,
profession, consumption, manufacture, adventure or concern
and whether or not there is any volume, frequency,continuity
or regularity in such trade, commerce, profession,consumption,
manufacture, adventure or concern.
b)
Any transaction in connection with, or incidental or ancillary to,such
trade, commerce, profession, consumption, manufacture,adventure
or concern.
c)
Any occasional transaction in the nature of such trade, commerce,profession,
consumption, manufacture, adventure or concern involving
import, purchase or sale of goods in the city.
d)
Any transaction in connection with, or incidental or ancillary to the commencement
or closure of such trade, commerce, profession,consumption,
manufacture, adventure or concern. GBCA MAHARASHTRA LOCAL BODY TAX (M-LBT)
•
Import: Import is not defined under the Act or the Rules. Import means when
the goods are bought within the city limits of a corporation by way of purchase
or otherwise.•
Export: Export is also not defined under the Act or the Rules. Export means when
the goods are moved outside the city limits of a corporation by way of
sales or otherwise.
•
Schedule “A”: Schedule “A” means a schedule as notified by the state government
in the official gazette enumerating goods on which and the rates
at which LBT is leviable. This is the schedule of Taxable goods.
•
Schedule “B”: Schedule “B” means a schedule as notified by the state government
in the official gazette enumerating goods on which no LBT is leviable.
This is the schedule of Tax Free goods.
•
Taxable Value: Taxable value in case of purchases means Invoice value, in case
of imports (not on account of purchases) means value as per Excise Invoice,
in case of goods sent outside and brought back after processing the value
addition evidenced by invoice for labour charges.
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