Local Body Tax (LBT) creating havoc in Pune

Status
Not open for further replies.
I am in Mumbai currently and shops are closed here also. Just went to Reliance mart to buy some stuff. So much crowd there.
 
I just cam e back home from manipal, can't even find a xerox shop open... Andheri west area is shut down completely....
 
one of my friend owns jewellery shop , he said to me that it just not the tax but also power given to LBT officer to seize the shop / business if account doesn't talley , plus respected organization will have to keep 10 years of record.
Even panwala , dudhwala & even vada pav wala :P etc etc comes under LBT.

It will increase corruption for sure , a friend asked officer "why LBT " & reply by officer "For City development and infrastructure" :eek: .
Definitely not city but our beloved ministers:greedy:
 
  • Like
Reactions: mpaspc
Question we need to ask is why is Maharashtra the only state in whole of India to want lbt tax for development? Other states are fine without it and earn far less revenue than maharashtra govt. Is Maharashtra too greedy for money? Govt is making life miserable day by day for people and business both.
 
  • Like
Reactions: Sai@tech
I think India ranks something 150+ out of the 200 odd countries for doing business due to lots of red tape and taxes and all.
Might not be related but Mumbai comes under Maharashtra and many new vendors want to setup shop here.
Pune is the IT Hub with lots of people with high disposable income and these taxes will screw up businesses.
 
Shops are open only for akshaya tritiya. They will close after that again. Some festival about buying gold or other metals I think.
 
Its not ONLY about their own sales.......
99% of the traders own only 1 kind of business. But their needs are same as us. They are equal amount of consumer / end user as we all are.
A guy owning a beer shop has to go to other shops for grocery, milk, vegetables, medicines, etc etc etc..... Its the same with any shopkeeper.....
So they have zero benefit in holding the customer at ransom.
They are already sick of the heavy taxes which have ate their profit margins. Now its a stage where most of the business is done on minimum profit/ to keep turnover rolling....
Go and ask a shop keeper how many loans they have.... what about the payments that they have committed to their suppliers for the goods they purchased before the strike and which is still lying in their stores....
People who are being so ignorant towards the LBT issue will only know the consequences when they will have to face it. Like paying insanely high for goods and services which were reasonable before.
Not everything can be ordered online guys..... And keep in mind that the malls and multinational stores in INDIA will also take a grip of this situation and exploit the consumers and charge them more....
 
  • Like
Reactions: mpaspc, sharktale1212 and ch@ts
A traders an entrepreneur running a business for profit ...he isn't a government employee or service that's obligated to provide essential services. If he wants to close his shop in protest because he thinks a new law is making his business non-viable, has he has every right to.
And in the case of LBT, I side with the traders.
The governments levying a tax which makes compliance difficult, but is keeping penalties stiff.
It's creating a need for more government employees, who are economically unproductive, when it should be looking at trimming it's expenses, reducing leakages, etc, instead of penalizing and taxing small businesses.
Instead of multiple taxes, they should have just one, like sales tax, and share the revenue with the center, making life easier for everyone.
Don't blame the traders because you're life's become difficult especially when it's the government that's at fault.
 
  • Like
Reactions: mpaspc, imkaush, sharktale1212 and 1 other person
And the traders who met the CM also proposed that instead of charging LBT add same amount in VAT.
Currently the Maharashtra govt earns Approx 65000 crores in VAT and about 13000 crores in Octroi.
Govt wants to replace octroi with LBT to reap almost same revenue i.e. about 13k CR.
Trade unions and association of chartered accountants have proposed to include the same proportion (15-20% of vat) in the current VAT payable. In this manner the local bodies get their share and the govt need not employ new mechanism or inspector raj to enforce LBT. Every trader today has a sales tax no. And the local civil bodies have detailed reports about the sales tax/VAT paid by every business men.
They can just claim their share every year. But the problem is that this claiming happens a bit slowly (again GOVT fault) and the local bodies are so greedy that they want the money in their pockets directly.
Its not long that Maharashtra will be converted into a remote Assam city or NE state in terms of economy and trade.

Stupid CM says that traders dont pay taxes people do but he is dumb enuf to not understand that once outside his shop every shop keeper/trader is himself a larger consumer paying insane amounts of tax on tax on tax.....
If viewed from a different angle the govt wants to milk the people dry only coz they know ppl will not protest and pay up. They are too weak to fight against govt.
LBT is every citizen's fight which only the traders are taking the lead for us. In other ways they are also facing the maximum hit for these strikes.
 
  • Like
Reactions: imkaush and sharktale1212
Problem lies that the Octroi department has a huge staff.And now once it shuts its on to the government to find way to give salary to this thugs.Hence its just now they wants to make it open.Go search and raid anyone or everyone and fill our coffers and your pocket too.

Just and example of my business.Intodays time, just a few month back a Fevicol product which I used to purchase for 690 without bill and sell the same for 700 just with the understanding that in a month ill purchase 100 quantity and sell those to make a measly profit of 1.45% per month excluding the other storage and expense I borne on labours etc.Even that business have change, I need to purchase the product now in advance in cash for 705 and I need to sell it for 700 still since large big pockets can afford and is selling at same price and after a year they will claim rebate of 15 rupees at year end.And those big fish gets money rebate in time whereas we have to wait for another 4-6 months and we are sure they get much better price than ours to buy.

Now should I concentrate to improve my business or wait and pay just to bribe every thug of them(first they don't understand each and every business).Few years back a sales tax officer send a notice of 4 lakhs(with no logic as half product we use to sell used to be tax free than).And when he understood his mistake without a single rupee to government settled the matter with a bribe all for himself.

Also every year after paying license fees and all the officers visit our shop and every year cancel our security deposit for some reason or another and also collect a good sum as bribe.Negative report is just to show they doing their work properly.
 
  • Like
Reactions: mpaspc and onlyravi
People think shop keepers are the evil Dracula who just takes money and hoards. If he has a shop he doesn't need to spend any. I mean why will a grocery shop owner go elsewhere to buy gold on akshay trithya he owns a shop.......oh wait!! But surely he doesn't need to pay lbt as the other shop keeper is his brother or something.
 
Status
Not open for further replies.
Top Bottom