Local Body Tax

[Ganeshan Kalyani]

Local Body Tax is to be paid by the purchaser. Whether it can be collected & paid through Invoicing. Since LBT is payable by purchaser, whether the dealer can charge LBT on invoice while selling to pay LBT on purchases.

[DR.MARIAPPAN GOVINDARAJAN]

Whether you have got clarified in the above issue? If not please inform.

[Ganeshan Kalyani]

It is good that you have touched upon this query. I have got this resolved much earlier. Now LBT is payable in Maharashtra for turnover more than 500 million.

[DR.MARIAPPAN GOVINDARAJAN]

Thank you for your information.

AI Summary

Local body tax liability: purchaser bears LBT, suppliers may collect via invoicing under threshold-based rules. Local Body Tax (LBT) is payable by the purchaser, prompting whether suppliers may collect and remit LBT by charging it on sales invoices. The issue concerns supplier-led collection mechanics where legal liability lies with the buyer. A discussion participant reports that in Maharashtra LBT applies subject to a turnover threshold, reflecting territorial applicability and threshold-based compliance.