Anand Limaye: "We oppose the draconian guidelines for LBT"

Senior printer and head of India Printing Works, Anand Limaye, said, "We welcome the abolition of octroi check-posts and conversion of octroi but not as LBT. It should be merged in VAT as declared and promised by the government. We are not afraid of octroi as we have nothing to suppress. In my opinion, majority of traders also will agree with this opinion. But we certainly should oppose the government, which is going back on their promises and betraying the traders." 

He added, "We certainly oppose the draconian guidelines for LBT rules and regulation imposed by the corporation."

He explained, "The profit and loss A/C and balance sheet have to be submitted for annual assessment to the Municipal Corporation. After the scrutinised balance sheet, the staff of Municipal Corporation will visit the registered dealer and ask the dealer to submit additional details. If assessees are unable to furnish the purchase and expenditure details, then they demand additional LBT on 20% of undisclosed amount in balance sheet."

Limaye feels this is detrimental to good and fair business practice in our industry.

The documents which are required for yearly assessment are:
1. Copy of LBT Registration Certificate
2. Form E-1 Return (Half Yearly)
3. From E-2 Return (Annual)
4. Audited balance sheet, profit and loss A/C, Tax Audit Report
5. LBT Payment Challan (showing all the information)
6. Purchase invoice for verification
7. VAT/CST Return (Form 231)
8. Purchase Register including purchase of fixed assets (month wise/item wise as shown in Annexure A, showing month-wise sub total)
9. Sales register month-wise
10. Stock register month and item-wise
11. Part IV- Month wise detail of goods imported for processing on job 
work basis, sub-rule 4 of Rule 28
12. Part V- Month-wise detail showing job work along with LR copies showing goods
inwards and out words.
13. Part VI – details of goods imported for export U/R 32, copy of exemption 
certificate U/R 32
14. Claim for LBT Refund under U/R 32 (Export within six months)
15. Bank statement of all bank accounts for the period of assessment.
16. Detail of fixed assets purchase.

Limaye stated, "On scrutinising the profit, loss A/C and balance sheet submitted for assessment, the following additional details are demanded by municipal corporations". He added a caveat that this "may vary from assessee to assessee."

The additional details are:

1. Consumables and general stores (Tea, coffee, sugar purchase)
2. Business promotion expenses
3. Development charges
4. Festival expenses (poojas or religious ceremonies goods purchase)
5. Loading and unloading charges.
6. Motor car expenses.
7. Miscellaneous expenses
8. Hamali, luggage and staff conveyance.
9. Printing, stationery and photocopy bills.
10. Packing material bills
11. Refreshments, snacks and tea expenses
12. Repairs and maintenance charges
13. Furniture fixtures, office automation purchase bills
14. Software expenses
15. Staff welfare (gifts, bonus)

Limaye asked, "The million dollar question is whether BMC is equipped to receive all this information and is in a position to go through the submissions and do the assessments properly?"

He concluded by saying, "The government should honour their words if they expect others to honour it."