Local body tax is a tax levied on entry of goods within the limits of municipality. Local body tax has been placed on the place of octrai duty. Local body tax is already operational in cities like Pune, new Mumbai, Nandal, Aurangabad, Kolhapur, Pimpri, Jalgaon, Nagpur, Chinchwud etc. local body tax will be introduced in Mumbai in second phase. Local Body tax is governed by the by the Maharashtra Municipal Corporations Act, 1949 (?MMC Act’), it has already been adopted by 19 out of 26 municipal corporations of Maharashtra. LBT or local body tax is imposed on the entry or import of product in municipal limits for the purpose of consumption, sale or use, hence the taxable events under LBT and octrai duty regime continues to be the same.