What is LBT?
LBT is the tax on entry of goods for use / consumption within areas of the local civic bodies. It is a self assessment or account based method of paying local tax, where the businessmen or trader himself declares his tax liability. Unlike in the octroi regime, trucks carrying goods will not be subjected to physical checking at check posts.How does LBT work?
It works differently from the octroi system. Traders have to compile a list of all goods procured within the month, feed the matter into the software provided by the civic body to check their LBT liability. They have to make payment once every 40 days using online portals, cheque, demand draft or cash through a designated bank or counters of the civic bodies.Significance of LBT
LBT will be the main source of income for civic bodies. It contributes between 50-70 per cent of the actual revenues of the corporation. The Pune Municipal Corporation collected Rs 1314.27 crores by way of octroi for the financial year 2012-2013, while the Pimpri Chinchwad Municipal Corporation collected Rs 1200 crores in the last financial year.
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