Local Body Tax, popularly known by its abbreviation as LBT, is the tax imposed by the local civic bodies of India on the entry of goods into a local area for consumption, use or sale therein. The tax is imposed based on the point 52 of the State List from the Schedule VII of the Constitution of India which reads; “Taxes on the entry of goods into a local area for consumption, use or sale therein.” The tax is to be paid by the trader to the civic bodies and the rules and regulations of these vary from state to state within India. The tax supersedes the “octroi” and “Cess” system of taxing. LBT is being introduced in Maharashtra in a Phased manner. LBT was introduced in the year 2010 i Tier III cities. In 2013 it was made applicable to tier II and I cities. The table below shows where LBT has been made applicable and from when. As of now it is applicable in Thane, Mira Road Bhayander, Nashik, KalyanDombivali, Bhiwandi, Navi Mumbai, Kolhapur, PimpriChinchwad, Pune. The lbt rates are different in every corporation.