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How LBT is different from octroi?
Local Body Tax gives direct access of accounts and turnovers of merchants. Earlier, octroi was charged on the material that came into the city, but Local Body Tax will be charged on overall turnover of merchants.
Trader has to pay the tax once every 40 days using online portals, cheque, demand draft or cash through a designated bank or counters of the civic bodies. According to traders, the tax will be an addition to the existing Value Added Tax (VAT). |
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The penalty provisions are 10 times the tax evaded. The Officers having power to impose such draconian law will have power over life of any business. Any person not having bill for the goods with him or goods that he is carrying will be liable to LBT and the penalty also. The officers can then demand any amount ( Rs.10,000 to lakhs ) depending on the capacity to pay of that person.
While implementing VAT , the maharashtra govt. promised that the octroi will be removed. But VAT was implemented in 2005 and Octroi was not removed. Government can renege on their promises. Common man cannot do so, he will receive a threatening letter from the govt. |
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