The Times of India            11.12.2013

PCMC sends LBT notices to 1,447 traders, rakes in 4.8cr

PUNE: The Pimpri Chinchwad Municipal Corporation (PCMC) has earned Rs 4.86 crore as Local Body Tax (LBT) from 1,447 traders who were sent notices.

Yashwant Mane, LBT deputy commissioner in PCMC, said, "Many traders failed to pay their tax. Notices were sent to the traders last month and a hearing was conducted. Traders who registered with the civic body paid tax amounting to Rs 4.86 crore."

There are 30,000 traders in the city and the civic body will send them LBT certificates mandatory for display in their shops, offices or establishments. There are 25,000 traders who are VAT holders and are deemed to be registered for LBT. While 9,000 traders are paying LBT, the PCMC will contact the rest and send them guidance material about LBT payment. Sixteen teams have been formed, Mane said.

Traders would also be told about the penalty for a delay in LBT payment. A hearing of all 30,000 traders in the city will begin from December 16. Each day the civic body will hear 1,000 traders.

Meanwhile, the PCMC has scaled down its LBT collection target from Rs 1,200 crore to Rs 950 crore. Mane said octroi used to be the main source of income for the civic body. "A majority of industries in the municipal limits are from the automobile sector which is going through a low. LBT income is likely to decline this year. Hence, the civic body has revised its LBT collection target for the present financial year," he added.

The LBT department has collected Rs 543 crore till December 7. The LBT revenue is less by Rs 234 crore as compared to octroi collection in the corresponding period in 2012-13.

"The monthly average LBT income till September was Rs 68 crore. If we are able to increase it to Rs 80 crore, then we will achieve the revised annual target. We expect to get Rs 8 crore as the civic body's share in stamp duty from properties. We also expect to get Rs 1.25 crore as monthly escort charges," Mane said.

Many traders failed to pay taxes. Notices were sent to these traders last month and a hearing was conducted. Traders who registered with the civic body paid tax amounting to Rs 4.86 crore.