Posted On Wednesday, March 06, 2013 at 10:29:54 AM
In accordance with a government resolution to the effect, the Pune Municipal Corporation (PMC) has initiated the process of implementing Local Body Tax (LBT) from April 1, 2013.
From the new fiscal year, LBT will replace octroi. The civic administration has prohibited all its departments from dealing with any business firm that isn’t registered with the civic body. PMC has also convened a meeting with businessmen to inform them about the implementation of LBT.
Entrepreneurs have been given a deadline of March 31, 2013, to register their names and mention the nature of their businesses. Without registration, no firm can operate in the city. This rule is applicable to businesses — permanent or temporary — with an annual turnover of not less than Rs 1lakh.
Vilas Kanade, head of octroi department, said, “We have told all businessmen to register their firms with the Octroi Department. The registration process is getting a slow response. The state government’s deadline for registration is 31 March. If these firms don’t register before deadline and still continue to run their businesses, then they will have to face fines ranging from five per cent and above as mentioned in the LBT rules.”
Octroi is a major revenue source for the municipal corporation. The difference between the two forms of taxation is that octroi has visible income in terms of daily cash flow, whereas LBT will be paid by the traders on a monthly basis.
LBT is the tax each trader will have to pay for goods they import in the city for trading. The idea is to abolish the bottlenecks associated with the current methods of octroi collection, thereby improving efficiency in the movement of goods.