Guidelines for LBT and Regulation - Accounting, Assessment & Scrunity

Profit & loss A/C and balance sheet to be submitted for annual assessment to Municipal Corporation.

After the scrutinized balance sheet, the staff of Municipal Corporation visits the registered dealer and asks to submit additional details. If assesses are unable to furnish the purchase and expenditure details, they demand additional LBT on 20% of undisclosed amount in balance sheet.

Yearly Assessment
1. Copy of LBT Registration Certificate
2. Form E-1 Return (half yearly)
3. From E-2 Return (Annual)
4. Audited balance sheet, profit and loss A/C, Tax Audit Report
5. LBT Payment Challan (showing all information clearly)
6. Purchase invoice for verification
7. VAT/CST Return (Form 231)
8. Purchase Register including purchase of fixed assets (month wise/item wise as shown
in annexure A, showing month wise subtotal)
9. Sales register month wise.
10. Stock register month and item wise.
11. Part IV- Month wise detail of goods imported for processing on job work basis, sub-
rule 4 of Rule 28.
12. Part V- Month wise detail showing job work along with LR copies showing goods
inwards and out words.
13. Part VI – details of goods imported for export U/R 32, copy of exemption certificate
U/R 32.
14. Claim for LBT Refund under U/R 32 (Export within 6 months).
15. Bank statement of all bank accounts for the period of assessment.
16. Detail of fixed assets purchase.

On scrutinizing the Profit, Loss A/C and Balance sheet submitted for Assessment.

The following additional details are demanded by municipal corporations. (may vary from assesses to assesses):
1. Consumables and general stores. (Tea, coffee, sugar purchase).
2. Business promotion expenses.
3. Development charges.
4. Festival expenses (poojas or religious ceremonies goods purchase).
5. Loading and unloading charges.
6. Motor car expenses.
7. Miscellaneous expenses.
8. Hamali, luggage and staff conveyance.
9. Printing, stationary and photocopy bills.
10. Packing material bills.

11. Refreshments, snacks and tea expenses.
12. Repairs and maintenance charges.
13. Furniture fixtures, office automation purchase bills.
14. Software expenses.
15. Staff welfare (gifts, bonus).