Govt relaxes several Local Body Tax rules, traders still unhappy
NAGPUR: Taking a step backward, the state government has relaxed many regulations of theLocal Body Tax (LBT) to woo the agitating traders' organizations.
The amended regulations will be applicable for all cities coming under the purview of LBT. The traders especially those having annual turnover less than 10 lakh have a lot to cheer, but the associations involved in the agitation are firm on their demand that LBT has to be withdrawn.
The state urban development department (UDD) issued the amended notification on Thursday and also changed the act, naming it TheMaharashtra Municipal Corporations (local body tax) Rules 2013 instead of the Bombay Provincial Municipal Corporations (local body tax) Rules 2010. The Nagpur Municipal Corporation (NMC) received the copy on Friday afternoon.It has circulated the notice to all trader organizations and asked them to withdraw the agitation.
As per rules, the draft notification will come into effect 20 days after April 25. The UDD principal secretary has been given the responsibility to receive and hear the suggestions and objections.
A major relaxation among the 12 amendments is the exemption from filling of returns to the traders with a turnover of or below 10 lakh per annum who had to go for lump sum system. Besides, the amended regulations will exempt hundreds of traders from LBT registration purview. Another major change is that the traders with an annual turnover of 4 lakh or more and importers bringing goods worth 3 lakh or more will now have to register themselves. Earlier, the mandatory norms were 1.50 lakh for turnover and 1 lakh for importing the goods.
Appealing to the traders to withdraw their agitation, municipal commissioner Shyam Wardhane told TOI that relaxation of rules by the chief minister Prithviraj Chavan was following his assurances given to them and on the floor of the house.
"The government is very positive and serious about the LBT," he said.
However, NVCC president Dipen Agrawal said that the traders want LBT to be withdrawn completely. The general secretary of the Vidarbha Taxpayers Association, Tejinder Singh Renu said, "Instead of making changes in LBT regulations the government should have stopped LBT and increased the percentage in VAT for making up its revenue affected from the abolition of octroi."
NMC assistant commissioner Mahesh Dhamecha said the small traders may have to bear losses during the ongoing agitation. "The NMC received 938 applications and issued registration numbers to all. The 28,000 big traders registered with sales tax department were deemed registered under LBT."
Ringing in the new
For registration eligibility, annual turnover increased to 4 lakh from 1.50 lakh for local traders, 3 lakh from 1 lakh for importing goods
No need to show bills and sale-purchase details may be submitted by maintaining computerized data. The compulsory data storage period reduced to 5 years from 10 years
Traders with annual turnover of or below 10 lakh and opting for lump sum payment system may not have to file returns
Traders importing goods for sale to other cities will not be made compulsory to pay LBT. The civic chief may give total exemption or ask to pay only 10% of total LBT
The payment date extended to 20th of every month as against earlier schedule of 10th. The last date for VAT payment is 21st
The ten times penalty reduced to five times for LBT evasion. Similarly, delay payment interest also reduced to 2% instead of 3% after 12 months period. For non-compliance of notice, the penalty amount reduced to 5,000 from 10,000
Civic chief given powers to verify and impose LBT for the goods taken outside city limited for processing and again brought into city limit for sale. Earlier, it was compulsory for many products
The amended regulations will be applicable for all cities coming under the purview of LBT. The traders especially those having annual turnover less than 10 lakh have a lot to cheer, but the associations involved in the agitation are firm on their demand that LBT has to be withdrawn.
The state urban development department (UDD) issued the amended notification on Thursday and also changed the act, naming it TheMaharashtra Municipal Corporations (local body tax) Rules 2013 instead of the Bombay Provincial Municipal Corporations (local body tax) Rules 2010. The Nagpur Municipal Corporation (NMC) received the copy on Friday afternoon.It has circulated the notice to all trader organizations and asked them to withdraw the agitation.
As per rules, the draft notification will come into effect 20 days after April 25. The UDD principal secretary has been given the responsibility to receive and hear the suggestions and objections.
A major relaxation among the 12 amendments is the exemption from filling of returns to the traders with a turnover of or below 10 lakh per annum who had to go for lump sum system. Besides, the amended regulations will exempt hundreds of traders from LBT registration purview. Another major change is that the traders with an annual turnover of 4 lakh or more and importers bringing goods worth 3 lakh or more will now have to register themselves. Earlier, the mandatory norms were 1.50 lakh for turnover and 1 lakh for importing the goods.
Appealing to the traders to withdraw their agitation, municipal commissioner Shyam Wardhane told TOI that relaxation of rules by the chief minister Prithviraj Chavan was following his assurances given to them and on the floor of the house.
"The government is very positive and serious about the LBT," he said.
However, NVCC president Dipen Agrawal said that the traders want LBT to be withdrawn completely. The general secretary of the Vidarbha Taxpayers Association, Tejinder Singh Renu said, "Instead of making changes in LBT regulations the government should have stopped LBT and increased the percentage in VAT for making up its revenue affected from the abolition of octroi."
NMC assistant commissioner Mahesh Dhamecha said the small traders may have to bear losses during the ongoing agitation. "The NMC received 938 applications and issued registration numbers to all. The 28,000 big traders registered with sales tax department were deemed registered under LBT."
Ringing in the new
For registration eligibility, annual turnover increased to 4 lakh from 1.50 lakh for local traders, 3 lakh from 1 lakh for importing goods
No need to show bills and sale-purchase details may be submitted by maintaining computerized data. The compulsory data storage period reduced to 5 years from 10 years
Traders with annual turnover of or below 10 lakh and opting for lump sum payment system may not have to file returns
Traders importing goods for sale to other cities will not be made compulsory to pay LBT. The civic chief may give total exemption or ask to pay only 10% of total LBT
The payment date extended to 20th of every month as against earlier schedule of 10th. The last date for VAT payment is 21st
The ten times penalty reduced to five times for LBT evasion. Similarly, delay payment interest also reduced to 2% instead of 3% after 12 months period. For non-compliance of notice, the penalty amount reduced to 5,000 from 10,000
Civic chief given powers to verify and impose LBT for the goods taken outside city limited for processing and again brought into city limit for sale. Earlier, it was compulsory for many products
Regards,
-------
CA.C.V.PAWAR
PATIL DAWARE GIRASE PAWAR & ASSOCIATES
-------
CA.C.V.PAWAR
PATIL DAWARE GIRASE PAWAR & ASSOCIATES
CHARTERED ACCOUNTANTS
0253-2319641. M-9423961209
No comments:
Post a Comment