20 April 2013
LBT means Taxes on the entry of goods into a local area for consumption, use or sale therein. LBT is another name of Octroi. Octroi is collected at check posts. In LBT check posts are supposed to be removed. It is a tax which can be collected by Corporations on the basis of books of accounts like VAT. Any goods which are brought into the Corporation area (import) from outside Corporation area for use, consumption or sale are liable for LBT. It is a tax on purchase and not on the sale of goods. It is a self assessment account based tax. If goods are purchased inside Corporation area from unregistered dealer under LBT Act, then also LBT is payable.
CAclubindia
