Feb 5, 2014
NAGPUR: In some goods news for the cash-strapped Nagpur Municipal Corporation (NMC), the revenue from Local Body Tax (LBT) has increased to Rs 37.05 crore in January making it highest ever monthly collection since octroi abolishment.
According to data available with the civic body, revenue of Rs 31.75 crore came from LBT cess, Rs 9.22 crore from transit pass and Rs 4.65 crore from stamp duty. The revenue from octroi in January 2013 was Rs 40.92 crore for a difference of just Rs 4 crore.
The total revenue this fiscal from April 1 to January 31 was Rs 283.20 crore as against Rs 393.86 crore last year. The revenue deficit counts to Rs 110 crore.
The revenue from LBT increased only after searches and action since October 2013. Revenue of Rs 5.86 crore was collected in April 2013 followed by Rs 15.02 crore in May, Rs 30.01 crore in June, Rs 35.60 crore in July, Rs 29.06 crore in August, Rs 29.47 crore in September, Rs 32.93 crore in October, Rs 34.67 crore in November and Rs 33.53 crore in December last year.
Feb 4, 2014
PUNE: After the property tax defaulters, it is time for water tax and LBT defaulters to face the music as the civic administration is planning to introduce the 'band bajao' drive for other services too.
"The response of the property tax has been good. Huge recovery has been made during the drive. So, from next financial year onwards, the civic administration is planning to introduce the drive for other services as well," said Rajendra Jagtap, additional commissioner of PMC, while speaking to reporters on Monday.
The Pune Municipal Corporation's (PMC) decision to rope in brass bands to recover dues from property tax defaulters has paid rich dividends. In the four months, from September to December last year, the civic body mopped up property tax dues worth Rs 72 crore through the drive.
The bands were hired to play loud music in front of houses of the defaulters, shaming the owners into clearing their dues. Officials from the property tax department accompany the bands to collect the payments.
The drive was launched in March 2013 on an experimental basis. After getting a good response, the drive was resumed in September. The civic body uses six brass bands to work in different wards across the city and pays them as much as Rs 20 lakh a year.
Jan 31, 2014, 01.58 AM IST
NAGPUR: City based Tristar Business Group, promoted by Kamal Kothari, has been hauled up for local body tax (LBT) evasion. Nagpur Municipal Corporation (NMC) conducted search and seizure operations simultaneously at Tristar's 21 city outlets and head office situated at Civil Lines. The group is in hospitality, and retailing ready-made garments, sports, watches, cars etc.
With return of assistant commissioner Milind Meshram to LBT department, expectations were high to increase the revenue of the cash-strapped civic body. Tristar Group's evasion unearthed during the operations is said to be biggest so far.
Meshram told TOI the group purchased goods around Rs 10 crore and registered sale of around Rs 14 crore. "Group was supposed to declare the purchase and sale with the LBT department followed by payment of tax. But it evaded LBT. Only Rs 1.32 lakh LBT was paid with the NMC in January this year in the name of Tristar Trade Links Pvt Ltd. Now the LBT liability will be calculated followed by penalty according to provisions in the Act," he said.
The NMC team led by Meshram searched Tristar Group's head office while other teams fanned out to 21 locations across the city in the manner of Income Tax raid. Municipal commissioner Shyam Wardhane, who supervised the searches, said evasion came to fore when the data of octroi paid earlier was compared with LBT payments. "NMC is having data of goods imported and cess paid during the Octroi period. Many more such raids are expected in the coming days," he said.
Meshram urged the traders to ensure prompt payment of LBT to prevent action. "Co-operation from all traders is needed to increase revenue of the civic body," he said. NMC is facing revenue deficit of around Rs 120 crore from LBT since April 1, 2013.
Jan 29, 2014, 04.59 AM IST
Traders call for bandh on February 21 against LBT
NASHIK: All traders' associations in the state on Tuesday decided to observe bandh on February 21 in protest against the state government decision to implement the local body tax (LBT) in the limits of 26 municipal corporations. The traders also decided to take out a rally at Azad Maidan in Mumbai on the same day at 2pm. The decision to this effect was taken at a meeting of all traders' associations from the state at Nashik Industries & Manufacturers Association (NIMA) House in thecity. The meeting was organised by the Federation of Associations of Maharashtra (FAM) and Nashik City Traders' Federation (NCTF).
He added, "The Lok Sabha and state assembly elections will be held in the next few months. The total headcount of traders and their families is about 50 lakh across the state and five people are associated with each trader. Hence, we have decided vote for the political party during the forthcoming elections that will assure us in writing about abolishing the LBT." NCTF executive president Prafulla Sancheti said, "The state government imposed Value Added Tax (VAT), but did not abolish octroi. Now they abolished octroi, but introduced the LBT. We neither want octroi nor LBT."
The meeting was attended by office-bearers of traders' associations from Mumbai, Pune, Pimpri-Chinchwad, Dombivali, Thane, Akola, Amravati, Aurangabad, Mira-Bhayander, Nanded, Vasai-Virar, Dhule, Malegaon, Kalyan, Ulhasnagar, Sangli, Solapur and Kolhapur.
Jan 29, 2014
NAGPUR: The Nagpur Municipal Corporation's (NMC) local body tax (LBT) department has caught Canara Bank, Shankar Nagar circle office, on the wrong foot. The bank evaded LBT cess and will have to face a penalty.
The LBT team led by assistant commissioner Milind Meshram, Rajesh Meshram, Nitin Sakore, Dilip Mate and Ramesh Padghan conducted an inspection at the bank on Tuesday and unearthed the evasion. Meshram told TOI, the bank did not pay LBT cess for materials worth Rs27 lakh imported from outside the city limits.
"The bank is registered under LBT but did not pay the LBT cess to import UPS, batteries and furniture. The bank also failed to maintain purchase register, which is mandatory under LBT Rule 19. Penalty will be levied according to provisions under section 152L of MMC ACT," he said.
Jan 28, 2014,
Kolhapur: The Kolhapur Municipal Corporation (KMC) sent notices to owners of 550 vehicles on Monday for evading local body tax (LBT) in the current fiscal. According to the civic administration, tax to the tune of Rs 1 crore was evaded and if recovered would significantly add to the civic body's coffers.
According to a report by the LBT department, owners of only 95 of 117 vehicles listed with it have paid the tax, which amounts to Rs 14 lakh during the current financial year. LBT is applicable to vehicles with a selling cost of Rs 1 lakh and above. The KMC has made vehicle owners responsible for registering with the regional transport office (RTO) and not the dealers.
LBT officer of KMC Ram Katkar said, "Notices have been issued to owners of 550 vehicles and not the dealers as the RTO has comprehensive data of vehicles that are ultimately registered with it. Vehicle owners should communicate with the KMC within seven days of receiving the notice or we have requested cancellation of registration of such vehicles. We are at present tracing the data with the dealers and notices will also be issued to them if they are found evading tax despite vehicle owners having paid it."
Katkar said the data of vehicles whose owners are evading tax is primary and complete scrutiny of the data with the RTO has not yet been completed. "When the work of scrutinizing the vehicles with the RTO is completed, the number of vehicles whose owners have evaded tax may rise. We will set up a cell at the RTO which will recommend it to register the vehicle only after confirming that the LBT has been paid."
It is for the first time since the new tax system has been implemented that the KMC has issued notices to the vehicle owners and not the dealers. During the financial year 2012-13, the dealers had paid Rs 69.68 lakh as LBT. "Till last year, owing to the manpower crunch, we didn't have the mechanism to check tax evasion. Also, traders' opposition to LBT was so strong that we hardly got time to keep tabs on tax evaders," said Katkar.
According to the RTO, around 14,656 four-wheelers and more than 3,000 two-wheelers, whose owners are applicable to pay the tax, are registered with the RTO in the current year.
There are about 25 dealers for two-wheelers and around eight dealers for four-wheelers in the city. Around 18,300 two-wheelers and 14,656 four-wheelers have so far been registered with the RTO in the current fiscal. Most of the dealers have their storehouses at the Shiroli MIDC areas, though the showrooms are in the city.
Katkar added that to find out whether the dealers are evading the tax is a time-consuming process as most of them have storehouses outside city limits. "Any product sold from outside the city limits is not applicable to pay LBT as the tax can only be levied on entry of goods in the civic limits for use or sale in the civic limits itself. To keep tabs on tax evasion, we will conduct a drive to check sale of vehicles or registration of the dealers," he said.
With only two months remaining for the end of the current fiscal, it has been able to generate Rs 63 crore from LBT.
Jan 28, 2014,
Traders to hold state-level meet on local body tax today NASHIK: The traders' associations have decided to intensify their agitation against the Local Body Tax (LBT) in view of the forthcoming Lok Sabha and state assembly elections in the state. The decision on further course of action will now be taken at a state-level meeting of associations to be held in the city on Tuesday. The meeting of the office-bearers of the traders' associations across the state will take place at 3.30 pm at the NIMA (Nashik Industries & Manufacturers Association) House, wherein the president of the Federation of Associations of Maharashtra (FAM), Mohan Gurunani, will guide the associations at the meeting. The city traders had observed an 11-day bandh from May 9 to 19 in protest against the implementation of the LBT in the jurisdiction of the Nashik Municipal Corporation (NMC). They had called off the bandh following assurance by union agriculture minister Sharad Pawar of settling the issue. Accordingly, Pawar took initiative and held a meeting with chief minister Prithviraj Chavan over the issue on May 24. The CM had assured to set up a committee to address the issues of traders pertaining to the LBT within eight days. But, the state government neither set up the committee nor held talks with the traders. Speaking to TOI, executive president of the Nashik City Traders Federation (NCTF) Prafulla Sancheti said, "While introducing the Value Added Tax (VAT) in the state, the then state finance minister, Jayant Patil, had said there would be one tax system in the state. It was expected that the octroi be abolished following the introduction of VAT, but the government did not do so. Now, the state government has replaced octroi wit the new tax system. We neither want octroi nor LBT." "We have decided to support only those political parties which will stand by the traders on the LBT issue. We have organised a meeting of representatives of the traders' association across the state to decide further course of action," Sancheti added.
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