The Times of India                08.10.2013

Civic bodies eye e-payment route for local body tax

KOLHAPUR: The civic bodies of Kolhapur, Sangli and Solapur are in talks with some public sector banks for providing an online gateway facility to the traders for the payment of local body tax (LBT). The move is aimed at saving the time of the traders of visiting the banks personally, wait in queues and seek receipts of the payment.

LBT came into effect in the jurisdiction of Kolhapur and Solapur municipal corporations more than a year ago, while the new tax system was introduced by the Sangli Miraj Kupwad municipal corporation (SMKMC) in May this year.

After opposing the new tax system initially, traders have now started making payment of LBT with their respective civic bodies.

Omprakash Divatay, deputy commissioner of SMKMC, said, "The corporation is in talks with a couple of public sector banks for starting online payment gateway facility. The corporation and the interested banks have held some meetings over the issue and decided to start the facility at the earliest. The system is aimed at simplifying tax payment facilities for the traders as well for corporation officials. The tax will be deposited directly in the account of the civic body."

The SMKMC has already received Rs 11.5 crore in the form of LBT from May this year.

Ram Katkar, LBT officer in the Kolhapur Municipal Corporation, said, "The corporation has held a couple of rounds of meetings and reviewed the presentations made by the interested banks. The banks have also offered to set up special counters at their branches as an additional facility. After the payment is made, an automated receipt will be generated, which will be given to the trader and the corporation. This will save a lot of time of the corporation and the bank."

"At present, a private company is operating the computerized system of the corporation for acceptance of various taxes. The existing system at ward offices will continue, but the online facility will make things simpler," he added. There are close to 10,000 traders who pay value added tax to the state sales tax department. As many as 7,000 pay LBT regularly, while some are still out of the LBT purview as per exemptions mentioned in the rules. The total collection of LBT in the KMC is Rs 36 crore.

P V Thadsare, LBT officer in the Solapur Municipal Corporation, said, "We are in talks with a public sector bank and within a week, we are going to finalize the deal. This will increase the collection of the corporation. There are some 8,000 traders registered with the civic body, who have paid Rs 37 crore so far."

Lalit Gandhi, chairman of Rajarampuri Merchats' Association, said, "Such a facility will definitely help us. At present, the traders have to go the bank, stand in queues and make payments. The system is not very friendly as it consumes a lot of time, which the traders can utilize in a better way."