Large Tax Payer Units :

The Finance Minister in his Budget Speech 2005-06 announced the proposal to set up Large Taxpayer Units (hereinafter referred to as LTUs) in the country in line with the international practice to service large taxpayers paying excise duty, corporate tax/income-tax and service tax under a single window. LTU is a trade facilitative measure seeking to address and deliver appropriate solutions to the unique compliance issues that may arise.

The first Large Taxpayer Unit was set up at Bangalore. The Chief Commissioner, Central Excise and Service Tax heads the LTU in Bangalore. Currently, LTUs are functioning from Chennai, Delhi and Mumbai also.

Conceptually, LTU is a self-contained tax office that provides single point interface with the tax administration to the large taxpayers who pay direct and indirect taxes above a specified threshold limit. It is a single office that deals with central excise/service tax/ income tax/ corporate tax issues of all units holding a single PAN. Once a taxpayer acquires the status of LTU, the entire jurisdiction of central excise, service tax and income tax matters stand transferred to the said LTU in respect of all his manufacturing units, service providing premises, and other registered premises located throughout the country. Some of such activities are as given below: –

(a) Filing of returns

(b) Filing of refund/rebate claims

(c) Audit, Adjudication and Appeals

(d) Filing of intimation, permissions

(e) Visit to units

(f) Acceptance of proof of export

A LTU is headed by a Chief Commissioner (either from CBDT or from CBEC). The Chief Commissioner, LTU is expected to undertake following functions-

(a) overall administration of LTU;

(b) co-ordination between the direct tax and the indirect tax wings of LTU;

(c) distribution of work amongst the LTU officers;

(d) monitoring of revenue collection;

(e) quality Assurance Checks/ taxpayer feedback system;

(f) devising effective taxpayer assistance system;

(g) review of the orders passed by the Commissioners as adjudicating authority (as a member of Review Committee);

(h) issuance of trade notices/ circulars to bring about uniformity in tax administration as well as determination of amount of tax payable;

(i) coordination with the Boards (CBEC and CBDT), Directorates and with other field formations in the matters such as audit verification, revenue recoveries, etc.

The Chief Commissioner, LTU intimates the jurisdictional Central Excise, Service Tax and Income Tax Commissioners regarding the transfer of the specified units f rom their jurisdiction to the LTU. The Commissioners posted in LTU hold executive and appellate charges. The powers and duties are similar to that of other field Commissioners. However, they are required to play a pro-active role in ensuring the fulfilment of objectives of a LTU. The Commissioners of Direct and Indirect Taxes are expected to work in a coordinated manner. Other Group ‘A‘, ‘B‘, ‘C‘ officers along with supporting staff are posted by CBDT and CBEC. The Chief Commissioner, LTU assigns a Client Executive for each taxpayer from among the Additional/Joint/Deputy/Asstt. Commissioner posted in LTU, and the said Client Executive becomes the single point interface with the large taxpayer for all purposes.

The officers posted in LTU have all India jurisdiction in respect of all registered premises of a large taxpayer registered in that particular LTU. The erstwhile Central Excise or Service Tax Commissionerate Officers have concurrent jurisdiction. However, the interaction with these units is limited to specific functions requiring physical presence of the officers for purposes such as warehousing, sealing or any other work as assigned by the LTU.