The Times of India 16.04.2013
Credai to decide policy on paying lumpsum LBT
NASHIK: Even as the preparations by Nashik Municipal Corporation (NMC) to introduce Local Body (LBT) have gathered momentum, the Confederation of Real Estate Developer's Association of India (Credai), Nashik, has said that it will soon decide its policy on option of paying LBT on total construction.
On March 26, the Bombay high court had directed the civic administration to implement LBT within eight weeks. The deadline ends on May 20 and LBT is expected come into effect from May 21.
The NMC has already made it clear that it would implement LBT in city as per the Central government's guidelines.
After the introduction of LBT, city builders and contractors undertaking construction work within the municipal limits shall registered themselves with the civic body.
They will have the option of either paying LBT on the value of goods imported into the city limits for construction or making lump sum payment of LBT on total construction.
Speaking to TOI, Kiran Chavan, president of Credai, Nashik, said, "Builders have been given two options. But there is no clarity on the option of paying lump sum LBT on total construction. We will soon discuss the issue at the meeting of Credai office-bearers shortly and decide the policy in this regard."
In case of paying lump sum amount, the builders will have to pay LBT of Rs 100 per sq mt for construction up to four floors (where the building is without a lift), Rs 150 per sq mt for construction up to 7 floors (building with a lift) and Rs 200 sq mt for construction of high-rise buildings above seven floors.
A senior NMC official told TOI, "The LBT is to be introduced in the city as per the guidelines of the state government. We have started preparations for the LBT which is to be introduced in the city from May 21. Besides, we are also focusing on the recovery of octroi which will be replaced by the new tax system."
On March 26, the Bombay high court had directed the civic administration to implement LBT within eight weeks. The deadline ends on May 20 and LBT is expected come into effect from May 21.
The NMC has already made it clear that it would implement LBT in city as per the Central government's guidelines.
After the introduction of LBT, city builders and contractors undertaking construction work within the municipal limits shall registered themselves with the civic body.
They will have the option of either paying LBT on the value of goods imported into the city limits for construction or making lump sum payment of LBT on total construction.
Speaking to TOI, Kiran Chavan, president of Credai, Nashik, said, "Builders have been given two options. But there is no clarity on the option of paying lump sum LBT on total construction. We will soon discuss the issue at the meeting of Credai office-bearers shortly and decide the policy in this regard."
In case of paying lump sum amount, the builders will have to pay LBT of Rs 100 per sq mt for construction up to four floors (where the building is without a lift), Rs 150 per sq mt for construction up to 7 floors (building with a lift) and Rs 200 sq mt for construction of high-rise buildings above seven floors.
A senior NMC official told TOI, "The LBT is to be introduced in the city as per the guidelines of the state government. We have started preparations for the LBT which is to be introduced in the city from May 21. Besides, we are also focusing on the recovery of octroi which will be replaced by the new tax system."
