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Old 19th March 2015, 08:05   #16
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Smile LBT to be scraped in Maharashtra

Maharashtra government has scrapped LBT with effect from 1st August 2015. To compensate the loss, an additional surcharge on the Value Added Tax will be levied.

Hopefully now the fuel prices and the vehicle cost in the Municipal limits where LBT was applicable will come down.

In addition to the above announcement, the FM for Maharashtra state govt has increased the outlay for development of rural roads and the state transport authority MSRTC will be overhauled. Hopefully these tow measures will increase the road and transport connectivity.

Quote:
Maharashtra finance minister Sudhir Mungantiwar on Wednesday announced the scrapping of Local Body Tax (LBT) as the Devendra Fadnavis-led BJP government presented its maiden budget of Rs 1,98,000 crore in state assembly.

The BJP government fulfilled its assembly election promise made to the traders who were strongly opposing the LBT. Mungantiwar announced that the LBT will be scrapped from August 1, 2015. To compensate for the losses, the government will impose surcharge on value added tax (VAT) across the state.
Quote:
Mungantiwar announces Rs 2413 cr project to build rural roads
Quote:
FM announces plan to overhaul state transport service, MSRTC
http://www.hindustantimes.com/mumbai...1-1327765.aspx
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Old 5th August 2015, 11:31   #17
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Default Re: LBT Impact/Calculation on Vehicles

Does anyone know if LBT is now removed from 1st Aug. Last news that I heard was it was removed for traders with turnover below 50Cr . While the ones above 50Cr turnover(Our Car Dealers/Service Centers) will still need to Pay LBT
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Old 5th August 2015, 12:13   #18
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Default Re: LBT Impact/Calculation on Vehicles

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Originally Posted by malgudi View Post
Does anyone know if LBT is now removed from 1st Aug. Last news that I heard was it was removed for traders with turnover below 50Cr . While the ones above 50Cr turnover(Our Car Dealers/Service Centers) will still need to Pay LBT
Even I am looking for the same information. The best what i could find is what you have already stated. Though none of the news articles are very clear, they say that the terms have been amended and not Abolished.

Also read that the traders would first clear the stock bought under LBT only after which the actual benefit would be passed on the customers. Not sure if this is going to affect the car prices in LBT areas.
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Old 5th August 2015, 12:24   #19
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Default Re: LBT Impact/Calculation on Vehicles

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Originally Posted by malgudi View Post
Does anyone know if LBT is now removed from 1st Aug. Last news that I heard was it was removed for traders with turnover below 50Cr . While the ones above 50Cr turnover(Our Car Dealers/Service Centers) will still need to Pay LBT
Dealers having turnover less than Rs 50 crore within the limits of the concerned local body are exempted from the purview of Local Body Tax, w.e.f. 1st August, 2015.

However, let us assume that a dealer 'A' has his principal place of business in the limits of a local body 'J'. His turnover from this principal place is less the Rs 50 crore. He has an additional place of business outside the limits of the local body 'J'. He purchases all the vehicles and stocks them at this additional place, the Purchase Invoices are raised on this additional place outside the limits of 'J'. At the time of selling, they're sold from this additional place and the Sale Invoice mentions the address of additional place. And all these transactions are certified by a Chartered Accountant. In such case, even if the combined turnover of the dealer (whose principal place of business is within the limits of the local body 'J') is above Rs 50 crore, no LBT is leviable.

Last edited by Swapnil4585 : 5th August 2015 at 12:35.
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Old 5th August 2015, 12:52   #20
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Red face Re: LBT Impact/Calculation on Vehicles

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Originally Posted by malgudi View Post
Does anyone know if LBT is now removed from 1st Aug. Last news that I heard was it was removed for traders with turnover below 50Cr . While the ones above 50Cr turnover(Our Car Dealers/Service Centers) will still need to Pay LBT
A brief talk with one of the officials of the LBT department of Thane Municipal corporations, the state directive of LBT removal is still being studied by the Municipal corporation due to the vagueness of the order which says LBT is applicable for business above 50 cr. The order does not mention anything related to the goods entering the municipal corporation jurisdiction. The TMC official said they have queried back to the govt regarding the elaboration of definition of 50Cr.

Looks like the fuels will continue to be charged with LBT.
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Old 12th August 2015, 08:51   #21
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Default Re: LBT Impact/Calculation on Vehicles

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Originally Posted by ghodlur View Post
A brief talk with one of the officials of the LBT department of Thane Municipal corporations, the state directive of LBT removal is still being studied by the Municipal corporation due to the vagueness of the order which says LBT is applicable for business above 50 cr. The order does not mention anything related to the goods entering the municipal corporation jurisdiction. The TMC official said they have queried back to the govt regarding the elaboration of definition of 50Cr.
In Jalgaon, they've already sorted out the dealers whose turnover within the municipal limits is above Rs 50 crore. One fly in the ointment is that those who're below the threshold limit, have to apply separately for cancellation of their L.B.T. Registration.
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Old 28th August 2015, 22:33   #22
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Default Re: LBT Impact/Calculation on Vehicles

I can confirm that this has been removed. I have just booked the Elite i20 Asta (O) Petrol. After a lot of research and losing Rs. 4000 in cancellation of booking charges I have finally managed to finalize the deal without LBT. By the way I stay in Thane. So the car would be registered in here. Here are the details. I hope this will be helpful.

Every dealer in Thane told me that LBT is still applicable and quoted Rs. 8,56,000 on-road price of the vehicle. I had booked it at one of the dealers then I started the research. I went to the extent of talking to the Assistant Commissioner of TMC who confirmed that LBT has been removed and dealers with less than 50cr turnover should not charge LBT.
I tried to convince the dealer but to no avail. Finally, I decided to try one of the dealers in Mumbai and Voila! This dealer clearly said no LBT and quoted Rs. 8,22,000. So I immediately cancelled my previous booking and booked with this dealer.

So here is what I learnt out of this. If the car has to be registered in Thane buy it from Mumbai. You avoid Octroi as well as LBT!

I hope this will help buyers in Thane till the dealers sort it out
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Old 16th October 2015, 01:15   #23
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Default Re: LBT Impact/Calculation on Vehicles

Well, they are charging LBT here in Pune though! Any idea how can I buy it here without LBT?
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Old 16th October 2015, 08:59   #24
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Default Re: LBT Impact/Calculation on Vehicles

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Well, they are charging LBT here in Pune though! Any idea how can I buy it here without LBT?
Most car dealer will have 50cr turn over.
I had asked this question on another thread an didn't get a reply. So posting it here again.
As a consumer, how do I know that the LBT being collected from me is actually being paid to the Municipal corporation.

For octroi there used to be receipt that the consumer for with every car purchase.
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Old 8th November 2016, 13:31   #25
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Default Re: LBT Impact/Calculation on Vehicles

i m planning to buy a Fortuner & i stay in Thane, can someone please tell me where can i get it without LBT
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