Definition of large tax payer:
Rule 2(ea) of the Central Excise Rules, 2002, defines “large taxpayer” as a person who-
(i) has one or more registered premises under the Central Excise Act, 1944; or
(ii) has one or more registered premises under Chapter V of the Finance Act, 1994;
and is an assessee under the Income Tax Act, 1961, who holds a Permanent Account Number issued under section 139A of the said Act, and satisfies the conditions and observes the procedures as notified by the Central Government in this regard. Notified persons to be eligible to opt as large taxpayer:
(i) Any person engaged in the manufacture or production of goods, except the goods falling under chapter 24 or Pan Masala falling under chapter 21 of the First schedule of the Central Excise Tariff Act, 1985, or
(ii) a provider of taxable service,
who has paid during the financial year 2004-05 or during the financial year preceding the year of filing of application for large tax payer-
(a) duties of excise of more than `500 lakhs in cash or through account current; or
(b) service tax of more than `500 lakhs in cash or through account current; or
(c) advance tax of more than `1000 lakhs, under the Income Tax Act, 1961,
and is presently assessed to income tax or corporate tax under the Income Tax Act, 1961, under the jurisdiction of prescribed income tax authorities.
Notified procedures to be followed to be eligible to opt as large tax payer:
(i) A large taxpayer who satisfies the conditions mentioned above may file an application in the prescribed form duly completed in all respects to the Chief Commissioner of Central Excise, Large Taxpayer Unit for the city where the large taxpayer is presently assessed to income tax or corporate tax indicating his willingness to be a large taxpayer.
(ii) A person willing to operate as large taxpayer shall furnish details of each of the premises already registered under the Central Excise Act, 1944 including the premises of first and second stage dealers and each of the premises registered under Chapter V of the Finance Act, 1994 including the premises of input service distributor.
(iii) The Chief Commissioner of Central Excise, Large Taxpayer Unit may after due verification of the application form, grant the acceptance in writing. The process of acceptance would not normally take more than 7 days.
(iv) Existing registrations under the Central Excise Act, 1944 or Chapter V of the Finance Act, 1994 shall continue. However, in case a new factory or service provider, input service distributor or first or second stage dealer which becomes liable to be registered, after opting as large taxpayer, the application for such new registration shall be made before the Assistant Commissioner of Central Excise or the Deputy Commissioner of Central Excise, Large Taxpayer Unit, in case of registration under the Central Excise Act, 1944 and the Superintendent, Large Taxpayer Unit, in case of registration under the Finance Act, 1994, as the case may be.
(v) After registration for each Large Tax Payer, the Chief Commissioner of LTU shall appoint an Officer (Additional/Joint/Deputy/Assistant Commissioner) who shall facilitate these units for any clarification, assistance or grievance redressal. The officer appointed as client executive can either be from Income Tax Department or Central Excise Department. The main purpose of appointing client executive is to enable the large taxpayer to have a single point interface.