There is a Lump Sum payment scheme in LBT Rules similar to what we have composition scheme in Service Tax.
This is governed by Rule 27. Below are the bare wordings of the provisions of the rule.
See also : Lump Sum payment explained
Lump sum Payment of Local Body Tax.-
(1) Subject to the provisions of this rule, if a registered dealer whose turnover of all purchases during a year, is less than rupees five lakhs opts for the payment of a lump sum amount of local body tax as specified in the table below he shall furnish a declaration in Form R prescribed under this rule. On a declaration in form R being furnished by him, the Commissioner shall, on being satisfied that the slab from the table specified below, as opted for by the applicant dealer is correct, grant him permission to pay a lump sum amount of local body tax in accordance with the table specified below, for such period and by such date, as he may specify in his order granting such permission and the dealer shall pay such lump sum amount of local body tax within fifteen days from the date of receipt by him, of such an order:
Provided that, if a dealer to whom permission for payment of lump sum amount of local body tax is granted under this rule, fails to pay such amount within time stipulated in this rule, the permission granted by the Commissioner for this purpose, shall be deemed to be withdrawn immediately on expiry of such time:
Provided further that, the Commissioner may treat the payment of such amount to be in accordance with the permission granted under this rule earlier, if such payment is made together with the interest chargeable thereon, under the provisions of clause (a) of sub-rule (3) of rule 48 within a further period of three months from the time stipulated for this purpose in this rule, or before the end of the year in which such permission was granted, whichever is earlier.
(2) If, during the year in which permission is granted by the Commissioner to a dealer, to pay a lump sum amount of local body tax under the provisions of sub-rule (1), or as the case may be, during any subsequent year in which such permission is in force, the turnover of all purchases of such dealer exceeds the limit of such slab, he shall pay such differential amount of local body tax as to equal the amount of local body tax payable by him in such year,in accordance with the slab of the table specified below, applicable to him due to such turnover exceeding such limit or in the event of his turnover of all purchases during such year exceeding rupees five lakhs, such differential amount oflocal body tax as is necessary to insure that the local body tax paid by him is not less than the amount that would be payable by him otherwise than under this rule.
(3) If the Commissioner has reason to believe that the turnover of purchases of a dealer to whom permission to pay lump sum amount of local body tax has been granted under the provisions of this rule, exceeds the limit of turnover declared by him in Form R•submitted for the purpose of this rule, and that such dealer has failed to comply with the provisions of sub rule (2) of this rule, he may, after giving such dealer a reasonable opportunity of being heard, by an order in writing, cancel such permission from the time such turnover has so exceeded the limit specified in the table below and may proceed to recover from him, the amount of interest chargeable and penalty leviable, if any, in addition to the amount of local body tax payable by such dealer otherwise than under this rule, in a manner prescribed under the other provisions of these rules. A copy of such order shall be served on the dealer.
Below is the table given in the rule, but also see new notification
This is governed by Rule 27. Below are the bare wordings of the provisions of the rule.
See also : Lump Sum payment explained
Lump sum Payment of Local Body Tax.-
(1) Subject to the provisions of this rule, if a registered dealer whose turnover of all purchases during a year, is less than rupees five lakhs opts for the payment of a lump sum amount of local body tax as specified in the table below he shall furnish a declaration in Form R prescribed under this rule. On a declaration in form R being furnished by him, the Commissioner shall, on being satisfied that the slab from the table specified below, as opted for by the applicant dealer is correct, grant him permission to pay a lump sum amount of local body tax in accordance with the table specified below, for such period and by such date, as he may specify in his order granting such permission and the dealer shall pay such lump sum amount of local body tax within fifteen days from the date of receipt by him, of such an order:
Provided that, if a dealer to whom permission for payment of lump sum amount of local body tax is granted under this rule, fails to pay such amount within time stipulated in this rule, the permission granted by the Commissioner for this purpose, shall be deemed to be withdrawn immediately on expiry of such time:
Provided further that, the Commissioner may treat the payment of such amount to be in accordance with the permission granted under this rule earlier, if such payment is made together with the interest chargeable thereon, under the provisions of clause (a) of sub-rule (3) of rule 48 within a further period of three months from the time stipulated for this purpose in this rule, or before the end of the year in which such permission was granted, whichever is earlier.
(2) If, during the year in which permission is granted by the Commissioner to a dealer, to pay a lump sum amount of local body tax under the provisions of sub-rule (1), or as the case may be, during any subsequent year in which such permission is in force, the turnover of all purchases of such dealer exceeds the limit of such slab, he shall pay such differential amount of local body tax as to equal the amount of local body tax payable by him in such year,in accordance with the slab of the table specified below, applicable to him due to such turnover exceeding such limit or in the event of his turnover of all purchases during such year exceeding rupees five lakhs, such differential amount oflocal body tax as is necessary to insure that the local body tax paid by him is not less than the amount that would be payable by him otherwise than under this rule.
(3) If the Commissioner has reason to believe that the turnover of purchases of a dealer to whom permission to pay lump sum amount of local body tax has been granted under the provisions of this rule, exceeds the limit of turnover declared by him in Form R•submitted for the purpose of this rule, and that such dealer has failed to comply with the provisions of sub rule (2) of this rule, he may, after giving such dealer a reasonable opportunity of being heard, by an order in writing, cancel such permission from the time such turnover has so exceeded the limit specified in the table below and may proceed to recover from him, the amount of interest chargeable and penalty leviable, if any, in addition to the amount of local body tax payable by such dealer otherwise than under this rule, in a manner prescribed under the other provisions of these rules. A copy of such order shall be served on the dealer.
Below is the table given in the rule, but also see new notification
| Slab No | Turnover of all purchases | LBT Payable |
|---|---|---|
| 1 | Up to Rs. 1,00,000/- | Nil |
| 2 | 1,00,001 to 2,00,000 | 2,000/- |
| 3 | 2,00,001 to 3,00,000 | 3,000/- |
| 4 | 3,00,001 to 4,00,000 | 4,000/- |
| 5 | 4,00,001 to 5,00,000 | 5,000/- |
