LOCAL BODY TAX (LBT)LOCAL BODY TAX (LBT)
(As applicable to Pune Municipal Corporation)(As applicable to Pune Municipal Corporation)
A.N.GAWADE & CO
(For Private Circulation only)
Date: 12th July 2013. (Updated as per Amendments Notification dt. 20/06/13)
12/07/13 A N GAWADE & CO. 1
Content ReferenceContent Reference
2. Persons Covered
3. Rates Applicable
4. Registration Process
5. Registers to be Maintained
6. Consequences of Non Reg.
7. Periodicity of Returns
8. Period of Payment
9. Refund Process
10. LBT on Stock Transfer’s
11. Respective Forms
12. Example for reference
13. How to Calculate LBT
14. Contact Details
Slide No. 4
Slide No. 5 & 6
Slide No. 7 & 8
Slide No. 12 & 13
Slide No. 15
Slide No. 16
Slide No. 17
Slide No. 18 & 19
Slide No. 20
A N GAWADE & CO. 2
Applicable from 01/04/2013
Applicable to following types of trades
1. Importer ( Person importing goods from outside the Municipal Limits
into Municipal Limits)
a. In case of dealer, who is an importer and value of all goods imported
by him during the year is not less than Rs.100000/-
2. In other cases
a. Including the case where a dealer has not become liable to pay
local body tax under clause above and turnover of all his sales or
purchases during such year is not less than Rs.500000/-
3. If person carrying business in Local limits on Temporary basis . He is
also required to take the registration under LBT.
12/07/13 A N GAWADE & CO. 3
Persons CoveredPersons Covered-- BothVat and NonBothVat and Non--Vat DealersVat Dealers
Service Industries such as Software Companies, CAs,Advocates,
Govt. Departments who import goods for Profit.
(Note:Applicable only if turnover criteria is satisfied.)
12/07/13 A N GAWADE & CO. 4
Rates ApplicableRates Applicable
Turnover of Purchases and Applicable
a. 1 Lakh to 2 Lakh Tax Rs. 4000/-
b. 2 Lakh to 3 Lakh Tax Rs. 6000/-
c. 3 Lakh to 4 Lakh Tax Rs. 8000/-
d. 4 Lakh to 5 Lakh Tax Rs. 10000/-
e. 5 Lakh to 6 Lakh Tax Rs. 12000/-
f. 6 Lakh to 7 Lakh Tax Rs. 14000/-
g. 7 Lakh to 8 Lakh Tax Rs. 16000/-
h. 8 Lakh to 9 Lakh Tax Rs. 18000/-
i. 9 Lakh to 10 Lakh Tax Rs. 20000/-
10.Above Rs. 10 lakhs Rate is specified in Schedule A according to the goods.
Dealers opting for above scheme, NEED NOT to file returns .
12/07/13 A N GAWADE & CO. 5
Rates Applicable for BuildersRates Applicable for Builders
Another alternative is available for builders and contractor who
undertake the work of construction can pay LBT on lump sum basis in
a. Construction up to 4 floor Rs. 100 per square meter.
b. Construction up to 7 floor Rs. 150 per square meter.
c. Construction above 7 floor Rs. 200 per square meter
Any Developer or person undertaking any work within Municipality limits
have an option of either paying LBT on value of goods imported into local
paying tax @ 0.25% of their total contract value.
For On Going Contracts as on 1.4.13, normal taxation (Commodity wise)
is advised in absence of clarity.
A N GAWADE & CO. 6
How to Register
- Person registered under MVAT within Municipal jurisdiction is deemed
to be registered under LBT- No need of separate registration under
LBT. LBT Certificate will be issued directly without any procedure.
However person who is registered under MVAT outside Municipal
jurisdiction but carrying out business activities within Municipal jurisdiction
required to get registered under LBT separately.
- Every person to whom LBT is applicable is required to apply for
registration within 30 days in Form A as issued by the State Govt for
12/07/13 A N GAWADE & CO. 7
Registration ProcessRegistration Process
Documents Required for Registration
1. PAN Card
2. Residence Proof of Dealer
3.Address proof of Place of Business
4.Copy of Shop Act Shop Act License
5.Copy ofVAT registration Certificate
6.2 Photographs of Dealer /Authorized Person
7. In case of Company or Partnership Firm, names of partners and
directors are to be mentioned in the form and affidavit shall be
submitted within 3 months from the date of application.
Note: The process of registration will start online from 15th March 2013.
And documents are need to be submitted at Octroi Dept Near PMC.
12/07/13 A N GAWADE & CO. 8
Register to be MaintainedRegister to be Maintained
Every trader to whom LBT is applicable is required to maintain following details as
required by State Government in Form D also required other details
1. Name and Address of theVendor
2.Vendors LBT Reg. No.
4. PurchaseValue of Goods/ Processing Charges
Form D (purchases and receipt of goods Register)can be maintained in Computerized
format. Dealer maintaining register in Computerized format is required to produce
documents maintained underVAT on demand to Commissioner.
1. Register should be chronologically maintained
2. Entry of goods to be as per date of receipt in City
3. Incorporate the details of purchase/import viz-
a. Invoice No and Date
b. Name and Address of selling dealer
c. Local RD and RC no. (If any) Else place from where goods are moved
for sale by selling dealer
d. Purchase price in case of Branch transfer i.e.Value of Goods.
12/07/13 A N GAWADE & CO. 9
Consequences of Non registrationConsequences of Non registration
1.For non registration of a person or
2. Person who is not registered but showing as registered
3.Submitting falsified returns
4.Submitting falsified documents for registration
5.Providing incorrect information in accounts
6.And person who trying to evade tax, etc.
- will be liable for a penalties from one times to five times of the
12/07/13 A N GAWADE & CO. 10
Periodicity for Annual ReturnPeriodicity for Annual Return
Every person to whom LBT is applicable is required to submit only
Annual Return in Form E II for the year. Even if it is nil tax liability.
Penalty for non filling of Return penalty is Rs.5000/- per return.
Form Date of Filling Return
1. Form E-II Within 90 days fromYear End
i.e. E-II need to be filled within 90 days from end of FinancialYear .
Earlier provision of half yearly return is removed.
12/07/13 A N GAWADE & CO. 11
Period of PaymentPeriod of Payment
Every person to whom LBT is applicable is required to pay LBT every month.
Interest for late payment will be @ 2% per month.
Month Date of Payment
1.April 20th May
2. May 20th June
3. June 20th July
4. July 20th August
5.August 20th Sept.
6. Sept 20th Oct
7. Oct 20th Nov
8. Nov 20th Dec
9. Dec 20th Jan
10.Jan 20th Feb
11.Feb 20th March
12.March 20th April
12/07/13 A N GAWADE & CO. 12
Period of PaymentPeriod of Payment
Registered dealer whose turnover of all purchases is less than Rs.
10 lakhs can opt for a payment of lump sum amount of LBT
subject to condition specified in Rule 27. Persons opting for such
scheme are not required to file Returns.
For this facility person is required to furnish a declaration in Form
R to Commissioner.
12/07/13 A N GAWADE & CO. 13
Refund of LBTRefund of LBT
In case of excess payment of LBT trader required to apply for refund .
In one month LBT application will be processed and within one
month refund will be issued.
If it is not issued within two month from date of application , refund will
be issued with interest .
90% of the eligible amount will be refunded in case of Export of Goods.
For regular exporter option of payment of LBT @10% of applicable rate.
Goods Imported and exported in same calendar month shall be eligible for set-
off of refund due in next month’s liability.
Eg. 1.Date of Application for refund : 01/04/2013
2. Date of Process of Application : before 30/04/2013
3. Date of Issue of Refund : before 31/05/2013
4. Not issued before 31/05/2013 : Interest from 31/05/2013 will be
12/07/13 A N GAWADE & CO. 14
LBT on Stock TransferLBT on Stock Transfer
LBT is payable on all imports into particular city limits. Following
are instances where LBT will be applicable:
1. Replacement of products under warrantee in another city limit. -LBT will
be payable in that City Limit.
2. Taking back old parts for repairs- LBT will be payable in City Limit where
it is imported.
3. Importing of goods in City limit for some function or sports activity or
presentations even for a day will attract LBT.
4. Office of the Dealer is in City and Godown is outside, then when goods
are taken in City Limits, LBT will be applicable.
5. Goods imported and re-exported within 6 months will be eligible for
refund upto 90% of LBT Paid.To claim LBT refund, you must pay first.
6. Machines like tea dispensers installed free in the Office, may attract LBT,
if imported from outside city.
7. Companies providing various maintenance services in multiple cities, may
have to pay LBT in such Cities if it is importing goods in such cities.
12/07/13 A N GAWADE & CO. 15
Respective formsRespective forms
Form A Application for Registration
Form D Purchase Register or Register of Goods
Form E II Form of Annual Return.
Form R Declaration for permission to pay lump sum amount of LBT.
12/07/13 A N GAWADE & CO. 16
Example with Calculation (LBT isExample with Calculation (LBT is
applicable on all taxes as well)applicable on all taxes as well)
Goods imported into PMC limits worth Rs. 10000/- as on 15th April 2013
(ApplicableVAT Rate – 12.5% and LBT- 2%)
Value of Goods Rs. 10000/-
Add:VAT @ 12.5% Rs. 1250/-
Purchaser is required to pay LBT @ 2% on Rs.11250/- i.e. equal to pay
Rs.225/- in Challan and need to pay it before 20th May 2013.
Note: Rate is assumed to be 2%. Actual list of Rate will be declared soon.
12/07/13 A N GAWADE & CO. 17
How to calculate LBT PayableHow to calculate LBT Payable
GrossValue of Goods Received/Purchased in Local Limits of PMC
1. Purchase from Local Dealers ……………….
2. Exempted Purchase (Tax free u/s 152Q) ……………….
3. Exempted for Govt Purchase (U/rule 28) ……………….
4. Value of goods imported for export out of PMC Limits ……………….
5. Goods Purchase Return within 6 months ……………….
Balance PurchaseTurnover liable for LBT as per
Scheduled Entry Rate … ……………….
Please refer to Sch – A for rates of LBT commodity wise.
12/07/13 A N GAWADE & CO. 18
How to Calculate LBT for GoodsHow to Calculate LBT for Goods
imported for Processimported for Process
Information regarding goods imported for Process
a) Opening Stock ------------
b)Value of Goods imported for processing on
job work during half year -----------
c)TotalValue ( a + b) -----------
d)Value of goods processed and Exported -----------
e) Closing Balance ( c- d) ----------
12/07/13 A N GAWADE & CO. 19
Contact usContact us
Above given information is for basic knowledge of LBT which will be
applicable from 1st April 2013
For more information Please contact us :-
A.N.GAWADE & CO.
Flat No.1 , Shreeshailya Apartment,Lane no.14,Prabhat Road , Pune-411004
Tel : 020 25421093
Cont. Person: 09822348948
Write us on : firstname.lastname@example.org
Visit us : www.angca.com
12/07/13 A N GAWADE & CO. 20