PUNE: Over 61,000 traders have collected their local body tax (LBT) certificates until March 31, which was the deadline for traders to submit their LBT application. And now, civic body officials plan to start a survey of those traders who have skipped the registration and explain to them why it's important.

"It is mandatory for the traders to register for the LBT and take the certificate. Those who don't have the certificate cannot trade in the city. There are provisions to impose a fine and punish traders who won't follow rules," said Vilas Kanade, joint commissioner, LBT for PMC. However, Kanade said that since the LBT system was new, the PMC would go soft on the punishment, but would rather focus on educating traders about LBT and its benefits.

The local body tax came into effect from Monday. All traders, who import goods worth over Rs 5,000 will have to register with the PMC for the same.

PMC now plans a shop-to-shop survey to identify traders who have not registered themselves for the LBT system. "If any trader is found to have skipped the registration, officials will appeal to them to take the certificate and also tell them what action can be taken against them for violation of rules," Kanade said.

He said that since the octroi department had been closed from Monday, the staff there would now be deputed for LBT work. Nearly 650 people, including officers and other staff, will carry out the LBT programme and will even undergo an LBT training programme on Tuesday.

The civic administration had started 16 centres across the city for LBT registration. Of these, 15 centres were set up at the 15 ward offices while one centre was established at the octroi department office near the civic body's headquarters in Shivajinagar. The registration process had started on March 14.

"Though technically the process has concluded, traders are welcome to submit their applications. The civic administration has decided to consider new applications of traders even after the deadline," said Kanade.

Octroi has always been a major source of income for PMC and accounts for 40 % of its revenue. The PMC collected Rs 1,314 crore from octroi till March 31, 2013. It is more by around 84 crores compared to last year's collection.

NAGPUR: Octroi, that was bread and butter of local bodies since 149 years, slid into history as Nagpur Municipal Corporation (NMC) implemented local body tax (LBT) from midnight of March 31-April 1. The civic body is hoping to garner Rs 484 crore from LBT in 2013-14. The estimated revenue is Rs 56 crore less than estimated revenue from Octroi for the fiscal.

Following municipal commissioner Shyam Wardhane's directions, additional deputy municipal commissioner Ravindra Kumbhare and assistant commissioner (LBT) Mahesh Dhamecha visited all major octroi check posts at midnight and closed the counters. Twenty one of 35 check posts were shut. The remaining 14 posts situated on major roads will continue for issuing transit passes.

Kumbhare formed a three-member team each for all ten zones and head office to facilitate registration of traders for LBT. He told TOI the team would comprise one inspector and two staffers. "They were given training and posted to all zones. They will ensure distribution and collection of registration forms. The team will also visit traders and encourage them to register for LBT," he said.

The NMC is expecting to register 1 lakh traders under LBT. Around 28,000 already registered with the sales tax department were declared as deemed approved on Monday. Besides, 115 more traders submitted application forms. Total 22,000 forms were distributed among the traders. All those eligible for LBT will have to ensure registration by April 28 and deposit the amount by May 10 or would be liable for penalty 10 times the amount due.

The octroi levy for 2012-13 was Rs 483 crore. The collection missed the target of Rs 575 crore set by the standing committee in its budget. Civic chief had estimated Rs 540 crore in his budget for 2013-14. However, chairman of standing committee Avinash Thakre said administration revised the estimation to Rs 484 crore in LBT. "I have decided to present budget between April 15 and 20. The information about estimated revenue was asked from the administration and it came up with figure of about Rs 484 crore," he said.

It was estimated that it will take sometime to streamline the LBT system. The estimated revenue is only Rs 1 crore more than what was recovered under octroi system in 2012-13. The revenue would have been increased at least 10% as natural growth under octroi system. The administration hopes to bridge the gap from stamp duty and other sources.