i think this is how it will end...
After a month or two, Govt will declare No LBT, but additional percentage in VAT. seeing it as a victory, most shopkeepers will go back to their "businesses" and govt will get what it originally wanted.
LBT might just be a decoy.
FROM DNA
We don't want to do this paperwork. We had requested the government to increase VAT by 1% which will serve their purpose but this petition was rejected by the municipal corporation.
http://www.dnaindia.com/mumbai/1832...l-us-why-they-are-opposing-local-body-tax-lbt
Govt promised the removal of Octroi Tax in 2005, post VAT. that did not happen, and A-listed city corporations started earning from VAT as well as Octroi. Now if they give up LBT and Octroi, they will have to have huge cuts in their budgets as one revenue source will be gone (which should have happened in 2005). These BMC, TMC, PMC etc have become addicted to a huge chunk of money coming in through two gates, octroi and VAT. w/o octroi they can not fund the corruption. eg Mumbai corporators and high ranking officers just got new Iphone, galaxy Tab, laptops etc for free. even most officers have pick up and drop facility from outside mumbai. Who is funding all this. We, the common citizen.
These corrupt corporators and officers can't think of making an honest living out of their salaries ( which are already way high as compared to the work they do, in the time frame that they do it too)
I support "LBT Hatao"
Just don't think the businessmen who are protesting against LBT are the friends of common man. Their only concern is This new LBT is very complicated to pay and involves a lot of paperwork. also LBT will bring back the Inspector Raaj, which they fear the most.
They did not oppose VAT, coz it was very easy to pay. multiply the bill amount by % from the VAT chart, take it from the customer and pay the govt. No need to hire any additional staff, no "magajmaari" of safeguarding any additional books for many years.
Just take example of any corporator's lifestyle. compare before and after winning the election. If you are following NEWS these days, Satish Chikhlikar, Nashik PWD has abt Rs. 20cr/-
We are paying it through taxes and tolls.
Back to the topic
LBT hatao
Why should we (the consumers, not businessmen) support removal of LBT?
FROM DNA
(Prithviraaj) Chavan said that the government is ready to discuss the issue again and remove misconceptions, if any, among the traders about the LBT. “The tax has been imposed on consumers and traders would be the agents collecting it,†he said.
http://www.dnaindia.com/pune/1821562/report-lbt-is-here-to-stay-prithviraj-chavan
-Hatao it coz it's a multipoint tax. the tax is charged at multiple locations for the same item.
-the final total of LBT is allowed to be more than cost of the item/commodity.
-if you sale or stock anything , you should register for LBT this includes selling items on TE. you won't even know when you crossed the turnover limit and the inspectors can start a full fledged investigation against you.
-if the inspectors feels like doing it, he can ask for LBT on the goods I purchased for my friends, who don't have credit card for online shopping.
-LBT doesn't care if you are selling the goods for charity purpose and not for earning profits. Schools are being forced to register for LBT, coz they buy and sell books, uniforms, toys etc to their students. Where is the profit?
-another example is of housing societies. Who works there for a salary of even 1 rupee? Do the secretory and chairman ask for any money for their services and time? but the definition of business ( profession, service etc) is so unclear that the inspector can easily manipulate it and include anything in it.
-abt Rs. 1lac pa turnover limit. My family's online shopping is around 20K+ per month.
-i may get fined for not giving proper receipts and not collecting various taxes from my friends (incl elder family members), for whom I buy things on CC and take cash or cheques from them.
-" importing things in a city limits " this vague definition is the biggest opportunity for corruption. eg you work in Mumbai and stay in Thane. you can be fined for carrying a new mobile in Mumbai which was purchased in Thane.
"how would the inspector know if you are going to sell it or not"
- the situation gets worse for the businessmen, from a big shot Jweller to a paanwala.
Some of the examples are bit extreme, but these baabus can do anything for completing the targets. More dangerous thing is that, most people will offer bribes to avoid the penalties. Just like old days in "Inspector raaj"
please pardon my bad english
read this
http://taxguru.in/goods-and-service-tax/local-body-tax-maharashtra-highlights.html
