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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