Nation Building Tax (NBT)

 

Who should Pay

Importers, Manufacturers, Service Providers, and Whole sale and retail Trade – with effect from 1st January, 2011.

Registration threshold.

For any quarter commencing on or after 01.04.2016 – Rs. 3 m.

Where the liable turnover for the quarter commencing on 01.04.2016 exceeds Rs. 3. m. and does not exceed Rs. 3.75 m., the tax shall be charged only on the liable turnover accrued on or after 02.05.2016 but prior to 11.07.2016 (and on or after the date on which new Act comes in to force)

Special registration threshold given to the following activities w.e.f. 01.01.2011 (Rs. 25 m. or less per quarter) will not be applicable on or after 01.04.2016 –

  • operating a hotel, guest house, restaurant or other similar business.
  • providing educational services by any institution established
  • supply of labour (manpower).

From 01.04.2016 any person carrying on any of the above activities cannot enjoy the increased registration threshold.

Where the liable turnover for the quarter commencing on 01.04.2016 exceeds Rs. 3 m. and  does not exceed Rs. 25 m. the tax shall be charged only on the liable turnover accrued on or after 02.05.2016 but prior to 11.07.2016.(and on or after the date on which new Act comes in to force )

Rs. 25 m registration threshold will be applicable even after 01.04.2016 to any person engaged in the processing of any locally procured agricultural produce in the preparation for sale.

NBT Rate

Rate of NBT is 2%.

 

Credit for NBT 

NBT credit is available only for manufacturers on the purchases made from any other manufacturer who registered for NBT.