LOCAL BODY TAX (LBT) (As applicable to Pune Municipal Corporation)

Transcription

1 LOCAL BODY TAX (LBT) (As applicable to Pune Municipal Corporation) PRESENTED BY A.N.GAWADE & CO CHARTERED ACCOUNTANTS (For Private Circulation only) Date: 27 th April (Updated as per Amendments Notification dt. 25/4/13) 27/04/13 A N GAWADE & CO. 1

2 Content Reference 1. Applicability 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. Important Points 11. Respective Forms 12. Example for reference 13. How to Calculate LBT 14. Contact Details Slide No.3 Slide No. 4 Slide No. 5 & 6 Slide No. 7 & 8 Slide No.9 Slide No.10 Slide No.11 Slide No. 12 & 13 Slide No.14 Slide No. 15 Slide No. 16 Slide No. 17 Slide No. 18 & 19 Slide No /04/13 A N GAWADE & CO. 2

3 Applicability 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. Turnover of goods(purchased/sold) specified in Schedule A is more than or equal to Rs.5000/- and b. Turnover of all goods imported is more than or equal to Rs.5000/- and c. Turnover of all goods is i. in case of corporations having population more than or equal to 20 Lakhs, turnover is more than or equal to Rs /- in a year and ii. In other corporations if turnover is more than or equal to Rs /- in a year (ALL ABOVE MENTIONED CONDITIONS NEED TO BE SATISFIED) 2. In other cases a. Turnover of Goods specified in list provided in LBT Rules is more than or equal to Rs.5000/- b. Turnover of all goods is i. In case of Corporation having population more than or equal to 20Lakhs, if turnover is more than or equal to Rs /- in a year and ii. In other corporations if turnover is more than or equal to Rs /- in a year. (BOTH THE CONDITIONS NEED TO BE SATISFIED) 3. If person carrying business in Local limits on Temporary basis. He is also required to take the registration under LBT. 27/04/13 A N GAWADE & CO. 3

4 Persons Covered- Both Vat and Non-Vat Dealers All Proprietorships All Partnerships Companies, LLPs Trusts Service Industries such as Software Companies, CAs, Advocates, Hospitals, etc. HUF, AOP, BOI Govt. Departments who import goods for Profit. (Note: Applicable only if turnover criteria is satisfied.) 27/04/13 A N GAWADE & CO. 4

5 Rates Applicable Turnover of Purchases and Applicable LBT 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 /- e. 5 Lakh to 6 Lakh Tax Rs /- f. 6 Lakh to 7 Lakh Tax Rs /- g. 7 Lakh to 8 Lakh Tax Rs /- h. 8 Lakh to 9 Lakh Tax Rs /- i. 9 Lakh to 10 Lakh Tax Rs /- 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. 27/04/13 A N GAWADE & CO. 5

6 Rates 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 following way: 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 limits. OR paying 0.25% of their total contract value. For On Going Contracts as on , normal taxation (Commodity wise) is advised in absence of clarity. 27/04/13 A N GAWADE & CO. 6

7 Registration 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 said purpose. 27/04/13 A N GAWADE & CO. 7

8 Registration 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 of VAT 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 15 th March And documents are need to be submitted at Octroi Dept Near PMC. 27/04/13 A N GAWADE & CO. 8

9 Register 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 the Vendor 2. Vendors LBT Reg. No. 3. Commodity 4. Purchase Value of Goods/ Processing Charges 5.LBT Payable 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 under VAT on demand to Commissioner. Note- 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 viza. 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. 27/04/13 A N GAWADE & CO. 9

10 Consequences 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 themes of the amount involved. 27/04/13 A N GAWADE & CO. 10

11 Periodicity for Return Every person to whom LBT is applicable is required to submit returns in form E-I six-monthly for first half year and in form E II for the year. Even though it is nil. Penalty for non filling of Return penalty is Rs.5000/- per return. Period Date of Filling Return 1. April to September E-I Before 15 th Oct 2 April to March E-II Before 15 th April 27/04/13 A N GAWADE & CO. 11

12 Period of Payment Every person to whom LBT is applicable is required to pay LBT every month. Interest for late payment will 2% per month. Month Date of Payment 1. April 20 th May 2. May 20 th June 3. June 20 th July 4. July 20 th August 5.August 20 th Sept. 6. Sept 20 th Oct 7. Oct 20 th Nov 8. Nov 20 th Dec 9. Dec 20 th Jan 10. Jan 20 th Feb 11. Feb 20 th March 12. March 20 th April 27/04/13 A N GAWADE & CO. 12

13 Period 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. 27/04/13 A N GAWADE & CO. 13

14 Refund 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 next 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 of applicable rate. Eg. 1.Date of Application for refund : 01/04/ Date of Process of Application : before 30/04/ Date of Issue of Refund : before 31/05/ Not issued before 31/05/2013 : Interest from 31/05/2013 will be issued. 27/04/13 A N GAWADE & CO. 14

15 Important Points Good for which rate of VAT is 0%, rate for the same under LBT will also be 0% Where as goods for which VAT is chargeable but no Octroi duty is payable, rate for same under LBT will be 0% 27/04/13 A N GAWADE & CO. 15

16 Respective forms Form A Application for Registration Form D Purchase Register or Register of Goods Form E-I Return Cum Challan (Half Yearly return ) Form E II Form of Annual Return. Form R Declaration for permission to pay lump sum amount of LBT. 27/04/13 A N GAWADE & CO. 16

17 Example with Calculation (LBT is applicable on all taxes as well) For Example Goods imported into PMC limits worth Rs /- as on 15 th April 2013 (Applicable VAT Rate 12.5% and LBT- 2%) Value of Goods Rs /- Add: 12.5% Rs. 1250/ Sub-Total Rs.11250/- Purchaser is required to pay 2% on Rs.11250/- i.e. equal to pay Rs.225/- in Challan and need to pay it before 10 th May Note: Rate is assumed to be 2%. Actual list of Rate will be declared soon. 27/04/13 A N GAWADE & CO. 17

18 How to calculate LBT Payable Gross Value of Goods Received/Purchased in Local Limits of PMC.. Less: 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 Purchase Turnover liable for LBT as per Scheduled Entry Rate. Please refer to Sch A for rates of LBT commodity wise. 27/04/13 A N GAWADE & CO. 18

19 How to Calculate LBT for Goods imported for Process Information regarding goods imported for Process a) Opening Stock Rs. b) Value of Goods imported for processing on job work during half year c) Total Value ( a + b) d) Value of goods processed and Exported e) Closing Balance ( c- d) /04/13 A N GAWADE & CO. 19

20 Contact us Above given information is for basic knowledge of LBT which will be applicable from 1 st April 2013 For more information Please contact us :- A.N.GAWADE & CO. CHARTERED ACCOUNTANTS Flat No.1, Shreeshailya Apartment, Lane no.14, Prabhat Road, Pune Tel : Cont. Person: Write us on : angawade@gmail.com Visit us : 27/04/13 A N GAWADE & CO. 20