The Hindu Business Line : 33 cos opt for large taxpayer unit scheme in Bangalore

The first large taxpayer unit (LTU) in the country is all set to get off the ground in Bangalore on Tuesday. About 33 companies have so far opted for this LTU, which has been designed to render single-window services for large taxpayers.

A taxpayer opting for this scheme will be able to file returns on excise duty, service tax and income-tax at the LTU and for all practical purposes be assessed to all these taxes at the unit itself.

The Revenue Department had, earlier this year, estimated that there were about 95 large taxpayers in Bangalore who could opt for the LTU scheme.

Besides reducing compliance and transaction costs for such taxpayers, the LTUs are also expected to help enhance the efficiency of tax administration.

The Government proposes to implement the LTU scheme in four other cities of Mumbai, Chennai, Kolkata and Delhi next year.

The scheme had recently been broad-based to even allow services-based organisation to opt for such a facility. A taxpayer (single PAN-based entity) who has paid in cash (or account current) excise duty of Rs 5 crore; or service tax of Rs 5 crore or more; or paid advance income-tax/corporation tax of Rs 10 crore or more in financial year 2004-05 and assessed to income-tax in Bangalore is entitled to opt for the scheme.

However, companies engaged in the manufacture of tobacco products or pan masala will not be eligible to avail themselves of this facility.

A Chief Commissioner, who has been drawn from the Central Excise Department, would head the LTU at Bangalore and be the overall in-charge.

The CBDT has already authorised the Chief Commissioner (LTU) at Bangalore to take up income-tax assessments of those companies who have opted for this scheme.

The Finance Ministry initially wanted the scheme to be a mandatory one, but later decided to keep it optional for large taxpayers. Under the LTU scheme, there would be no `mandatory' audit and cases would be taken up on selected basis.

In Asia, 13 countries including Pakistan, Sri Lanka, Bangladesh and Nepal have implemented LTUs. In India, LTUs are being implemented in a phased manner.

More Stories on : Policy | Taxation

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Bar on remote access irks global telecom cos

Service tax on international roaming?

Fertiliser Dept seeks panel nod to float SPV

Radio route to care for the aged

New drug policy in place, but relief to consumers sometime away

33 cos opt for large taxpayer unit scheme in Bangalore

Gujarat Govt plans retail store format for fair price shops

Bajaj Auto Sept sales up 38 pc

Satyam plans foray into joint R&D in auto sector

Paper size & print area reduction

`Female car buyers consider more models before buying'

IPOs lose sheen as market sentiments evoke caution

Energy, metals may hit new peaks in Q4

Defaulters beware! You can be `Cibilled' !

`Googled' just in time