LBT exemptions for Mumbai traders with below half a billion turnover

0
1023
Advertisement

The Local Body Tax (LBT) on Mumbai traders has been abolished for traders starting from August 1, 2015. The BJP led Maharashtra government informed that LBT would be abolished for traders with a turnover of less than half a billion in 25 municipal corporations.

Maharashtra government has come up with a new set of rules called Maharashtra Municipal Corporations (Local Body Tax) (Amendments) Rules, 2015. 

As per rule number three stated in the municipal corporations rules book, 2010 (The principal rules), any period starting on or after April 1, 2015, the dealer whose turnover of sales and purchases during any year (not less than half a billion), shall only be liable for registration while rule number 17 states “Neither the turnover of sales nor the turnover of purchases of a registered dealer, during the year prior to the year starting on 1st April, 2015 has exceeded half a billion, then the certificate of registration of such dealers shall be deemed to have been cancelled with effect from August 1, 2015.”

The government has also permitted extension to the amnesty scheme till August 15, 2015 and will cover months starting from April to July in the FY 2015-16.

Advertisement

Being the most auspicious moment for Mumbai traders, BJP government has fulfilled one of its poll promises and the commitments which they have made during elections. The government has done it now and the decision taken for LBT was influential in bringing it to power in the state.

According to reports, the government has made a budget provision of 200 billion to compensate the municipal corporations. The amendments will benefit 808,391 traders out of total 809,553 registered traders. There are 25 civic bodies across the state, and the LBT has been abolished in most of them. The governmen has also decided to provide financial aid to those corporations which do not generate intended income due to the abolition of LBT.

As government decided to give relief from LBT to the traders, All India Radio & Electronics Association (AREA) WZ, which protects the interests of the electronic trade and industry, appreciate the members for their support and cooperation during the LBT agitation. The association believes that the unity of association was and is a major guiding force for other markets of Mumbai. The same level of contribution and integrity from all the members will help in the betterment of electronic fraternity and trade in general. Due to month long Bandh, the LBT was not enforced on Mumbai.

Advertisement