Traders from the Sangli Miraj Kupwad areas have intensified their opposition to the local civic body's firm stand on collecting Local Body Tax (LBT).
Last week, the Sangli Miraj Kupwad Municipal Corporation's (SMKMC) had asked all traders under its jurisdiction, to pay LBT at the earliest. This decision irked the traders' community that has been raising demands with the state government against the tax. The LBT had come into effect in the jurisdiction of the Corporation in May last year, after the abolition of centuries old Octroi system.
A senior SMKMC official said "The corporation received Rs 40 crore from some traders, after they were served a notice. We do not have details of the traders, their business activities and turnover. So, a self-assessment clause was introduced in the new tax regime and traders are expected to assess their own business and pay tax."
The official added that the corporation should have earned Rs 60 crore, ideally.
The SMK civic body was one of the last corporations to introduce the tax. Earlier, traders had opposed the tax structure, but more than 5,000 have enrolled for it. The corporation is expecting a similar number of traders to obtain their registration numbers and start paying the tax. The official also said the corporation has received total tax worth Rs 40 crore this month.
"Around 500 traders were summoned to appear for the hearing, but only a few attended it. The traders who preferred to skip the hearing, will be served a notice for the final hearing. If they continue to be uncooperative, actions such as assessment of the business, tax calculation and collection and a severe fine will be taken up. The corporation is also authorized to seal their bank accounts ."
The official added that these traders would have paid Rs 9 crore a month as octroi, but have not paid LBT as they are against the new tax structure. This deficit is now more than Rs 20 crore. The corporation made several appeals to traders to register for tax payment, but only 60% registered so far.
The corporation also held awareness programmes for traders on calculation and assessment of tax. The LBT rules have put the onus of tax assessment on traders. The SMK corporation was the last in the state to come under LBT cover. The SMKMC official underwent training sessions from the Kolhapur Municipal Corporation, where the LBT was implemented two years ago.
Kolhapur: The traders in Sangli Miraj Kupwad areas have intensified their protest against the municipal corporation's (SMKMC) firm stand of collection of Local Body Tax (LBT). The tax was introduced after the abolition of centuries old Octroi system.
The Sangli Miraj Kupwad Municipal Corporation in the last week had asked all traders, who have not paid the local body tax since its introduction in May, to pay it at the earliest. It irked the traders' community that has been raising their demands with the state government.
The tax had come into effect in the jurisdiction of the Corporation in May last year.
"The corporation has received Rs 40 crore so far from some traders, who were served the notice to pay the tax. The notice has worked for some in the case. The corporation does not have details of the traders, their business activities and turnover. Hence, the self-assessment clause was introduced in the new tax regime. A trader is expected to assess his or her own business and pay the tax," a senior official from SMKMC said.
Ideally, the corporation should have earned Rs 60 crore, said the officials.
The SMK civic body was one of the last corporations to introduce the tax in areas under its jurisdiction. The traders had first opposed the tax structure, but more than 5,000 have businessmen have got enrolled for it. The corporation is expecting a similar number of traders to obtain their registration numbers and start paying the taxes. The official said the corporation has received total tax worth Rs 4 crore in this month.
The officials said, "Close to 500 traders were summoned to appear for the hearing but only few attended it. The traders who preferred to skip the hearing will be served with a notice for a final hearing. If the traders continue non-cooperation with the corporation, actions such as assessment of the entire business, calculation of the tax and collection of it with severe fine would be taken against them. The corporation is also authorized to seal the bank accounts of the non-cooperating traders."
Corporation officials said these traders would have paid Rs nine crore a month in the form of octroi, but have not paid the LBT in protest against the new tax structure. The deficit created by the non payment of the tax is now more than Rs crore, it is an important amount for the Corporation. The corporation had made several appeals to the traders for getting registered with the authority for tax payment, but only 60% have registered so far.
The corporation officials also held some awareness programmes for the traders on calculation and assessment of taxes. The LBT rules have put the onus of tax assessment on the traders, who earlier used to criticize that corporation officials deliberately formulate higher amount of taxes. The SMK corporation is the last one in the state to come under LBT cover. The officials also underwent training sessions from officials in Kolhapur Municipal Corporation, where the LBT was implemented two years ago.
Source : http://articles.timesofindia.indiatimes.com/2014-01-16/kolhapur/46263071_1_local-body-tax-lbt-traders
Last week, the Sangli Miraj Kupwad Municipal Corporation's (SMKMC) had asked all traders under its jurisdiction, to pay LBT at the earliest. This decision irked the traders' community that has been raising demands with the state government against the tax. The LBT had come into effect in the jurisdiction of the Corporation in May last year, after the abolition of centuries old Octroi system.
A senior SMKMC official said "The corporation received Rs 40 crore from some traders, after they were served a notice. We do not have details of the traders, their business activities and turnover. So, a self-assessment clause was introduced in the new tax regime and traders are expected to assess their own business and pay tax."
The official added that the corporation should have earned Rs 60 crore, ideally.
The SMK civic body was one of the last corporations to introduce the tax. Earlier, traders had opposed the tax structure, but more than 5,000 have enrolled for it. The corporation is expecting a similar number of traders to obtain their registration numbers and start paying the tax. The official also said the corporation has received total tax worth Rs 40 crore this month.
"Around 500 traders were summoned to appear for the hearing, but only a few attended it. The traders who preferred to skip the hearing, will be served a notice for the final hearing. If they continue to be uncooperative, actions such as assessment of the business, tax calculation and collection and a severe fine will be taken up. The corporation is also authorized to seal their bank accounts ."
The official added that these traders would have paid Rs 9 crore a month as octroi, but have not paid LBT as they are against the new tax structure. This deficit is now more than Rs 20 crore. The corporation made several appeals to traders to register for tax payment, but only 60% registered so far.
The corporation also held awareness programmes for traders on calculation and assessment of tax. The LBT rules have put the onus of tax assessment on traders. The SMK corporation was the last in the state to come under LBT cover. The SMKMC official underwent training sessions from the Kolhapur Municipal Corporation, where the LBT was implemented two years ago.
Kolhapur: The traders in Sangli Miraj Kupwad areas have intensified their protest against the municipal corporation's (SMKMC) firm stand of collection of Local Body Tax (LBT). The tax was introduced after the abolition of centuries old Octroi system.
The Sangli Miraj Kupwad Municipal Corporation in the last week had asked all traders, who have not paid the local body tax since its introduction in May, to pay it at the earliest. It irked the traders' community that has been raising their demands with the state government.
The tax had come into effect in the jurisdiction of the Corporation in May last year.
"The corporation has received Rs 40 crore so far from some traders, who were served the notice to pay the tax. The notice has worked for some in the case. The corporation does not have details of the traders, their business activities and turnover. Hence, the self-assessment clause was introduced in the new tax regime. A trader is expected to assess his or her own business and pay the tax," a senior official from SMKMC said.
Ideally, the corporation should have earned Rs 60 crore, said the officials.
The SMK civic body was one of the last corporations to introduce the tax in areas under its jurisdiction. The traders had first opposed the tax structure, but more than 5,000 have businessmen have got enrolled for it. The corporation is expecting a similar number of traders to obtain their registration numbers and start paying the taxes. The official said the corporation has received total tax worth Rs 4 crore in this month.
The officials said, "Close to 500 traders were summoned to appear for the hearing but only few attended it. The traders who preferred to skip the hearing will be served with a notice for a final hearing. If the traders continue non-cooperation with the corporation, actions such as assessment of the entire business, calculation of the tax and collection of it with severe fine would be taken against them. The corporation is also authorized to seal the bank accounts of the non-cooperating traders."
Corporation officials said these traders would have paid Rs nine crore a month in the form of octroi, but have not paid the LBT in protest against the new tax structure. The deficit created by the non payment of the tax is now more than Rs crore, it is an important amount for the Corporation. The corporation had made several appeals to the traders for getting registered with the authority for tax payment, but only 60% have registered so far.
The corporation officials also held some awareness programmes for the traders on calculation and assessment of taxes. The LBT rules have put the onus of tax assessment on the traders, who earlier used to criticize that corporation officials deliberately formulate higher amount of taxes. The SMK corporation is the last one in the state to come under LBT cover. The officials also underwent training sessions from officials in Kolhapur Municipal Corporation, where the LBT was implemented two years ago.
Source : http://articles.timesofindia.indiatimes.com/2014-01-16/kolhapur/46263071_1_local-body-tax-lbt-traders
