Taxation

On PMC terrain, several goods exempted from LBT

Tuesday, 02 April 2013 07:15 administrator

The Indian Express 02.04.2013

On PMC terrain, several goods exempted from LBT

AS the tax system replacing octroi comes into force, the new rates of LBT in Pune Municipal Corporation (PMC) indicated reduction in prices of a few goods as the state government has kept LBT rates on certain goods less than the octroi rates.

LBT rate on domestic gas has been kept at zero. In the list released by the PMC, goods exempted from LBT include dairies, catalogues, bread, broomsticks, chalk stick, charcoal, firewood, garlic, tricycles, kumkum, raw meat, poultry, seafood, eggs, green coconut, incense sticks and camphor.

"There are many goods on which the PMC was charging octroi but they have been exempted in LBT," said Vilas Kanade, Joint Municipal Commissioner (LBT).

He said the civic administration had expedited the implementation of LBT and issued around 61,000 LBT registration certificates through an online service on Monday. "All VAT registered traders have been automatically registered for LBT. Thus, their certificates were made available online," Kanade said.

Civic staff was being trained for implementation of LBT, he said. "The PMC will begin a survey of the city from Wednesday. Records of traders — name, address and so on will be collected by LBT inspectors for each area. The work will be coordinated by regional inspector."

Once the data of all businesses and traders was available, it would be easy for the civic administration to identify shops and businesses not registered under LBT, he added.

As per the government decision, Kanade said, any business without LBT registration would be considered illegal.

"Traders registered under LBT will have to file their challan from next month and submit their returns after six months. Thus, revenue would come from next month," he said.

Meanwhile, the PMC released information on octroi collection for 2012-13. Of the target of Rs 1,450 crore, the civic administration collected Rs 1,314 crore in the fiscal ended March 31, 2013.

On PCMC pitch, industry gets what it sought

Tuesday, 02 April 2013 07:11 administrator

The Indian Express 02.04.2013

On PCMC pitch, industry gets what it sought

Even as the indefinite strike called by shopkeepers and traders began on on Monday, the Pimpri-Chinchwad Municipal Corporation (PCMC) announced the LBT rates, which it claimed were lower than the rates applicable under octroi regime. However, the shopkeepers rejected the rates, calling them misleading and demanding scrapping of LBT.

PCMC chief Shrikar Pardeshi told a press conference that the LBT rate on industrial goods had been pegged at 2.4 per cent which was what the industry had demanded. "We had sent industry's suggestions to the state government which has agreed to levy 2.4 per cent LBT on industrial goods. Since their major demand has been accepted, the industry has reason to feel happy," he said. The earlier octroi rate on industrial goods varied from 3 to 3.5 per cent.

MCCIA director-general Ananth Sardeshmukh welcomed the new 2.4 per cent rate on industrial goods. "We had demanded LBT rates around 2 per cent. We are okay with the 2.4 per cent rate. In fact, PCMC had in fact already got it approved in its general body meeting," he said. Sardeshmukh said the industrial sector in Pimpri-Chinchwad would not participate in the indefinite bandh.

Another significant rate reduction relates to application of .01 to .1 per cent rate on gold and 0.1 per cent to 0.5 per cent on silver and valuable items. The earlier octroi rate varied from 1 to 2 per cent. "With this reduction, the gold price and silver should come down. However, it is up to the jewellers to take the call," said Pardeshi.

The jewellers are, however, not ready for rate reduction immediately. "As there is no clarity on many points, we will wait for some time before deciding," said Saurabh Gadgil of P N Gadgil Jewellers.

The rate on essential goods including food grains will vary from 0.5 per cent to 2 per cent. Pardeshi said the rates on semi-luxury items will now vary from 3.5 to 5. Earlier, they were pegged at 3 to 4 per cent. Similarly, on luxury items the rates would vary from 7 to 10 per cent. Earlier, they stood at 7 to 8 per cent. The new LBT regime exempts gas cylinders, cycles, cycle parts, idols made of sand and plaster of Paris.

"The rate on cylinders should reduce by Rs 20," said PCMC LBT chief Ashok Munde.

Civic officials said computers, household appliances, four-wheelers and cigarettes would cost more.

BMC gears up for octroi naka bandi

Tuesday, 02 April 2013 07:04 administrator

The Indian Express 02.04.2013

BMC gears up for octroi naka bandi

After spending over Rs 34 crore on modernisation of the five octroi nakas in the city, BMC has not only had to halt the project halfway but also start phasing out the check posts to make way for a local body tax (LBT) system.

More than 10,000 vehicles carrying goods enter the city through these points at Dahisar, LBS Marg, Eastern Express Highway, Mulund-Airoli and Vashi every day, generating an average revenue of Rs 2 crore in the form of octroi.

Vigilance squads keep a strict eye on incoming trucks that have to go through a series of checks and scans after which goods are weighed on an automatic weigh-bridge.

"Details of every incoming and outgoing vehicle are stored in our software and CCTV cameras ensure octroi is not evaded. The cameras are linked to a main server and one can check proceedings at octroi nakas sitting in an office," explained an official.

While octroi has been the biggest money spinner for the cash-starved BMC, officials claim LBT, which comes into force in October, will also ensure good income.

They, however, fear security at these major entry and exit points of the city could be a concern after octroi nakas are phased out.

Octroi is a tax levied on goods at the time of entry in a city.

It is collected in cash on daily basis. LBT, on the other hand, is a lumpsum charged on the value of goods.

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