Registration & Liability to pay LBT

Applicability of LBT in Maharashtra

There are 27 Muncipal Corporation and are as follows .
Kokan and Mumbai :Mumbai, Navi mumbai ,ulhasnagar ,thane, kalyan dombivali, vasaivirar mira bhay bhiwandi(8)
Western Maharashtra :-Pune ,Pimpri, kolhapur,solapur,Ahemednagar,Sangli(6)
Nashik dhule malegaon Jalgaon(4)
Vidarbha :-Nagpur Amaravati Akola Chandrapur(4)
Marathwada :-Aurangabad Parbhani nanded latur parbhani (5)

Here is the list of municipal Corporations in Maharashtra.
Nashik Municipal Corporation
Navi Mumbai Municipal Corporation
Brihanmumbai Municipal Corporation Not applicable yet
Pune Municipal Corporation
Amarawati Municipal Corporation
Malegaon Municipal Corporation
Thane Municipal Corporation
Ahmednagar Municipal Corporation
Kalyan-Dombivali Municipal Corporation
Nagpur Municipal Corporation
Solapur Municipal Corporation
Aurangabad Municipal Corporation
Sangli Miraj Kupwad Municipal Corporation
Pimpri-Chinchwad Municipal Corporation
Bhiwandi-Nizampur Municipal Corporation
Kolhapur Municipal Corporation
Malegaon
Akola Municipal Corporation
Nanded-Waghala Municipal Corporation
Ulhasnagar Municipal Corporation
Mira-Bhayandar Municipal Corporation
Latur Municipal Corporation

Applicability

(1) The limits of turnover for registration shall be(a) in the case of a dealer, who is an importer and whose turnover

of sales or the turnover of purchases of goods specified in Schedule A, during a year, is not less than Rs.5000/-, and the

value of all the goods imported by him during such year is not less than Rs.5,000/-, and the turnover of all his sales or the turnover of all his purchases during such year, is not less than Rs. 1,00,000.

(b) in any other case, including the case where a dealer has not become liable to pay local body tax under clause (a), and the turnover of purchases of goods specified in schedule A, in a year, is not less than Rs. 5000/-, and the turnover of all his sales or the turnover of all his purchases during such year, is not less that Rs. 1, 50,000/-.

(2) Notwithstanding anything contained in sub rule(1), if a dealer or a person not carrying on a particular business in

the City on a regular basis, carries on business in the City in any year on a temporary basis, then he shall be liable for

temporary registration under the provisions of the Act and these rules, whether or not he is liable under sub-rule of this rule.

Calculating the limit of turnover for liability for registration:

(1) For the purpose of calculating the limits of turnover for liability for registration

(a) except as otherwise expressly provided, the turnover of all sales or, as the case may be, the turnover of all purchases, shall be taken whether such sales or purchases are of goods taxable under the provisions of the Act and the rules or not;

(b) the turnover shall include all sales and all purchases made by a dealer on his own account, and also on behalf

of the principals mentioned in his accounts.

(c) in the case of an auctioneer, in addition to the turnover, if any, referred to in clauses (a) and (b), the turnover shall also include the price of the goods auctioned by him for his principal, whether the offer of the intending purchaser is

accepted by him or by the principal or a nominee of the principal if the price of such goods is received by him on behalf

of the principal.  a manager or agent residing in the City of a non-residential dealer, or, as the case may be, non residential dealers, shall be liable for registration under these rules whether or not the non-residential dealer or, as the case may be, non-residential dealers, are, liable for registration under this rule, and a commission agent or any

other agent by whatever name called, and an auctioneer shall be liable for registration under this rule, whether or not the principal is a dealer, and whether or not principal is liable for registration under this rule.

5. Special provision regarding liability to pay local body tax in certain cases:

(1) Where a dealer liable to pay local body tax under Chapter XIB of the Act, dies, then,

(a) if the business carried on by the dealer is continued after his death, by his legal representative or any other person, such legal representative, or other person shall be liable to pay local body tax, including any interest, penalty and sum

forfeited due from such dealer under these rules, in the like manner and to the same extent as the deceased dealer would

have been liable to pay if he had not died, and

(b) if the business carried on by the dealer is discontinued, whether before or after his death, his legal representative shall be liable to pay, out of the estate of the deceased, in the like manner and to the same extent, as the deceased dealer

would have been liable to pay if he had not died, the local body tax, including any interest, penalty and sum forfeited due from such dealer, under these rules, whether such local body tax, including any penalty and interest has been assessed or quantified before his death but has remained unpaid, or is

assessed or quantified after his death.

(2) Where a person, liable to pay local body tax under these rules dies, then his legal representatives shall be liable to pay, out of estate of the deceased, in the like manner and to the same extent, as the deceased person would have been liable to pay, if he had not died, the local body tax, including any interest, penalty and sum forfeited due from such person under these rules, whether such local body tax, including any penalty and interest, has been assessed or quantified before his death but has remained unpaid, or is assessed or quantified after his death.

(3) Where a dealer, liable to pay local body tax under these rules is a Hindu undivided family, and the joint family property is partitioned amongst the various members or groups of members, then each member or group of members, shall be jointly and severally liable to pay the local body tax, including any interest, penalty and sum forfeited due from the dealer under these rules, upto the time of the partition, whether such local body tax, including any penalty or interest has been assessed or quantified before partition but has remained unpaid, or is assessed or quantified after partition.

(4) Where a dealer, liable to pay local body tax under these rules, is a firm, and the firm is dissolved, then, every person who was a partner therein, shall be jointly and severally liable to pay, to the extent to which he is liable under rule 6, the local body tax including any interest, penalty and sum forfeited, due from the firm under these rules, upto the time of dissolution, whether such local body tax, including any penalty of interest, has been assessed or quantified before such dissolution but has remained unpaid, or is assessed or quantified after such dissolution.

(5) Where a dealer, liable to pay local body tax under these rules, transfers or otherwise disposes of his business in whole or in part, by sale, lease, leave or license, hire or in any other manner whatsoever, or effects any change in ownership thereof, in consequence of which he is succeeded in the business or part thereof, by any other person, the dealer and the person to whom the business is transferred, or the person succeeding, as the case may be, shall jointly and severally be liable to pay local body tax, including any interest, penalty and sum forfeited, due from the dealer under these rules, upto the time of suchtransfer, disposal or change, whether such local body tax, including any penalty and interest has been assessed or quantified before such transfer, disposal or change but has remained unpaid or is assessed or quantified thereafter.

(6) Where the dealer or, as the case may be, dealers, liable to pay local body tax under these rules:

(a) is the guardian of a ward on whose behalf the business is carried on by the guardian, or

(b) are trustees who carry on the business under a trust for a beneficiary, then, if the guardianship or trust is terminated, the ward or, as the case may be, the beneficiary, shall be liable to pay local body tax, including any interest, penalty or sum forfeited due from such dealer, upto the time of the termination of the guardianship or trust, whether such local body tax, including any penalty or interest has been assessed or quantified before the termination of the guardianship or trust but has remained unpaid, or is assessed or quantified thereafter.

(7) Where a dealer, liable to pay local body tax under these rules, is succeeded in the business by any person, in the manner described in clause (a) of sub-rule (1) or in sub-rule (5), then, such person shall, notwithstanding anything contained in rules 3 and 4, be liable to pay local body tax on and after the date of such succession or transfer and shall, unless he already holds a certificate of registration, within thirty days thereof, apply for registration.

6. Liability of firm: Notwithstanding any contract to the contrary, where any firm is liable to pay local body tax under these rules, the firm and each of the partners of the firm, shall be jointly and severally liable for such payment. Provided that ,where any such partner retires from the firm, he shall intimate the date of his retirement within sixty days thereof, to the Commissioner, by a notice in that behalf ,in writing and he shall be liable to pay the local body tax, including any interest, penalty and sum forfeited, if any, remaining unpaid at the time of his retirement, and also any local body tax due or interest or penalty payable or leviable in respect of any period prior to the date of retirement, though the assessment oquantification thereof is made after the date of his retirement.  Provided further that, if no such intimation is given within sixty days from the date of retirement, the retiring partner shall continue to be   jointly and severally liable to pay local body tax, including any interest, penalty and sum forfeited, in respect of the period after the date of retirement, till the day such intimation is received by the Commissioner, as if the retiring partner had not retired till such day.

7. Commission agent etc., liable to pay local body tax on account of principals:

(1) Where a commission agent or any other agent, by whatever name called, or an auctioneer imports any goods on behalf of his principal, into the limits of the City for consumption, use or sale therein, such commission agent, other agent, or, as the case may be, the auctioneer and the principal shall, both jointly and severally, be liable to pay localbody tax in respect of such goods.

(2) If the principal, on whose behalf the commission agent, any other agent or auctioneer has imported any goods into the limits of the City for consumption, use or sale therein, shows to the satisfaction of the Commissioner that the local body tax has been paid by his commission agent, other agent or auctioneer, on such goods, under sub-rule (1), the principal shall not be liable to pay local body tax again in respect of same goods.

(3) Where a manager or agent of a non-resident dealer imports any goods into the limits of the City for consumption, use or sale therein, then the non-resident dealer, and the manager of such agent residing in the City, shall be jointly and severally liable to pay local body tax in respect of such goods.

(4) If the non-resident dealer shows to the Commissioner, that the local body tax has been paid by the manager or agent residing in the City, then the non-resident dealer shall not be liable to pay local body tax again in respect of the same goods.

8.  Applicability of the provisions of the rules to the persons liable to pay local body tax under rule 5:

Where, in respect of any local body tax, including any penalty or interest or both, due from a dealer or a person under these rules, any other person is liable for the payment thereof under rule 5, all the relevant provisions of these rules, shall, in respect of such liability, apply to such person also, as if he was the dealer or the first mentioned person himself.

 

 

 

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