Wednesday, January 8, 2014

LBT on Construction/Builder

Town planning dept to collect LBT from builders

Sumita Sarkar, TNN Sep 2, 2013, 02.06AM IST
NASHIK: The local body tax (LBT) department of the Nashik Municipal Corporation (NMC) has asked the town planning department to start collecting tax from builders and developers in the city.
As per the rules of the LBT, Rs 100 per square metre is charged for buildings up to four floors, Rs 150 per square metre for buildings up to seven floors and Rs 200 per square metre for buildings having more than seven floors.
The LBT is to be charged on the total constructed areas of the building projects that will also include balcony, stilt floor, basement, parking and compound. A circular mentioning all these guidelines had been sent to the town planning department by the LBT department last week.
"The builders will have to pay 50% of the total LBT while getting their building plans approved and the rest of the 50% will have to be paid while getting the building completion certificates," said deputy municipal commissioner (LBT) Haribhau Phadol, while speaking to TOI.
Officials of the town planning department have confirmed the receipt of the circular and said that the builders and developers will be informed immediately and the tax will be collected as per the rules mentioned in the circular.
The LBT came into effect from May 22 replacing the octroi collection. Since then, till August 31, the NMC has collected a total of Rs 112.59 crore through LBT. In August alone, the NMC collected LBT amounting to Rs 50.61 crore.
The civic body has also taken action against 72 traders and businessmen for tax evasion and has collected a fine of Rs 6.21 lakh for not registering for the LBT and submitting fake bills.