Corporate

Payment of Local Body Tax (Thane)

If someone is doing business of trading, where servicing and made to order jobs are done in Mumbai. His office address is at Thane, which is also his residence. If he purchases items in Mumbai and uses them to make made to order jobs in Mumbai only and does not bring those articles to Thane. He sells those articles in Mumbai only. Then why does he have to pay Local Body Tax (LBT) to Thane Municipal Corporation (TMC). Just because his office address is in Thane, is it compulsory for him to pay LBT to TMC. Please advise me about the LBT-TMC law.

Expert Advice


Sir/Madam, Local Body Tax is imposed by local municipal bodies on the entry of goods into a local limits of the municipal corporation for consumption, use or sale. LBT is paid by the trader to the local municipal corporation as per the rules and regulation of that particular state. If your registered office is located under the jurisdiction of Thane Municipal Corporation (TMC) then payment of LBT to TMC is compulsory. Even if purchases, made to order jobs and sale is done in Mumbai you are still liable to pay LBT because your business is registered in TMC.

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