The Times of India             08.08.2013

NMC action against traders unregistered under LBT

NAGPUR: Over 40 days after the deadline, only 28,000 traders have registered with Nagpur Municipal Corporation (NMC) under the local body tax (LBT). To ensure registration of all traders, the LBT department has now started a drive to find traders not registered under LBT and recover five times penalty. Besides, the department has also started recovering 2% interest per month on late payment of LBT.

Assistant commissioner (LBT) Mahesh Dhamecha told TOI the drive has been started by LBT teams of all ten zones. Each team comprises an inspector and junior inspector. Around 22,000 of the registered 28,000 traders are those paying VAT. So, only a few traders remain to be registered. Traders (local purchasers) with annual turnover of Rs 5 lakh and traders (importers) with annual turnover of Rs 1 lakh have to be registered.

"NMC has urged the traders from time to time to ensure registration. Still over 7,000 traders are yet to come under LBT purview. Action is the only option, since the registration deadline was June 20. We have not taken action against any trader till date. Now, notices are ready and will be served as soon as we find unregistered traders," he said.

On LBT payment issue, Dhamecha said already 2% interest per month is being recovered for late payments. "Deadline for payment of April and May was June 20. Payment for June was to be paid by July 20. Around 6,000-7,000 traders paid LBT. Department will recover 4% extra from traders who did not pay for April and May, and 2% interest from those who have not paid for June," he said.

Dhamecha said there have been some developments on LBT issue recently. "Coordination committee has been formed under municipal commissioner Shyam Wardhane, with additional deputy municipal commissioner Ravindra Kumbhare and myself as members. We also have three representatives from traders association, two chartered accountants and two advocates. First meeting of the committee will be held soon," he said.

On the revenue from LBT, Dhamecha said revenue was still not at par with octroi, but satisfactory. "Rs115 crore used to be recovered from octroi by June 30. LBT registered revenue of Rs 67 crore, with Rs 20 crore from stamp duty. Cooperation from traders will help increase revenue," he said.

Expressing a concern on evasion through transit passes, Dhamecha said movement of trucks is being closely monitored. "Some transporters are not paying even though transit pass is only Rs 100. Penalty of Rs 1,620 will be levied in case of evasion," he said.

However, sources told TOI the department has neglected recovery of octroi arrears and finalization of octroi evasion cases after implementation of LBT.