Large Taxpayer Unit may fall short of target by Rs. 600 crore
October, 10th 2011
The Large Taxpayer Unit (LTU), Chennai, is likely to fall short of its central excise revenue target for the current fiscal by Rs.600 crore, while it might surpass in the case of service tax, according to Naresh Penumaka, its Commissioner.
While hiking the diesel prices by Rs.3 a litre on June 25, the Centre also announced a cut in central excise duty on diesel from Rs.4.60 a litre to Rs.2 a litre. This, it said, would result in an overall deficit of Rs.1,000 crore for 2011-12.
Target In the first six months of the current year, LTU Chennai has collected about Rs.2,658 crore through central excise and Rs.617 crore through service tax. The six-month target for central excise was Rs.2,801 crore against Rs.2,412 crore in the corresponding period last year. The service tax collection target was Rs.548 crore against Rs.515 crore last year.
Talking to The Hindu here on Sunday, he said, The central excise target for the entire year has been fixed at Rs.6,222 crore. We might lose about Rs.1,000 crore due to cut in central excise duty on diesel. However, we will recover about Rs.400 crore through new levies such as clean cess and one per cent duty on lignite, resulting in a shortfall of Rs.600 crore.
The LTU might still end the year with an overall collection of Rs.5,600 crore and this would be slightly higher than the previous year collection of Rs.5,561 crore, he observed.
On service tax, he said the unit was confident of achieving the target of Rs.1,390 crore. Last year's collection stood at Rs.1,073 crore.
In terms of income tax, LTU Chennai has been given a target of Rs.5,100 crore for 2011-12 against Rs.4,372 crore for the corresponding period last year.
The income tax collection from LTU last year was around Rs.5,000 crore, but the final sum was put at Rs.3,841 crore after deducting tax refunds.
In the first six months of the current year, we have collected around Rs.1,900 crore. Though it might sound small, we are confident of achieving the target, another official said.
Established on December 1, 2007, LTU Chennai acts as a single window facilitation centre for all large entities paying excise duty, corporate tax/income tax and service tax.
It caters to 45 large taxpayers with more than 200 manufacturing units across the country and 400 service tax registrations having a combined turnover of Rs.50,000 crore.