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LTUs to come up in Bangalore, Chennai: CBDT
August, 10th 2006
The Finance Ministry on Tuesday said the first Large Taxpayers Unit (LTU), a single window facility for big corporates, will be set up in Bangalore on October 1 and the second unit is expected to come up in Chennai subsequently. Opening of offices in Delhi, Kolkata and Mumbai and then to smaller ones would depend on receipt of sufficient participation from the large taxpayers, Central Board of Direct Taxes (CBDT) Chairperson M H Kherawala said at a CII seminar. The government is committed to make LTUs model unit for the world, she said. Finance Minister P Chidambaram had proposed setting up LTUs in Budget 2005-06, with a view to reduce the tax compliance costs and delays for the LTUs. The scheme entails opening up of a single window facilitation centre for all large entities paying excise duty, corporate tax /income tax and service tax. It would cover those units who paid excise duty or service tax of Rs five crore or more or a corporation tax of Rs 10 crore or plus. Customs and Central Excise Director General (Systems) V Sridhar said, to begin with, the returns of the company and its units could be filed electronically and the payment of tax/duty could be made electronically. Gradually there is a proposal to provide these units with required software and infrastructure to enable them to submit other documentations electronically, he added. He said since the corporates could choose to opt out of the LTUs scheme after a year of registration, there would be pressure on the government to ensure that the assured benefits accrue to the industries to hold their interest and participation.
 
 
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