LTU to be instrument of better tax compliance: Chidambaram

Mumbai, May 28 (UNI) Union Finance Minister P Chidambaram has said that the first Large Taxpayers Units (LTU) will be functional from July this year with a view to provide a single window clearance point for all matters.

Speaking at a seminar on 'Large Taxpayers Units in India'' here on friday, Mr Chidambaram said the LTU will provide single window clearance for all matters pertaining to Central Excise, Income Tax, Corporate Tax and service tax. Those who have paid excise duty in cash of Rs five crore or more or service tax of Rs 5 crore of more or advance income tax/corporation tax of Rs 10 crore or more during the financial year 2004-05 would be eligible for LTU. This however would be voluntary, he added.

He further said the LTU will create new relationship between the taxpayers and tax collector, which would be based on mutual trust and transparency. It will also help to improve quality of tax administration and level integrity in the department of revenue.

The taxpayer would have the option to transfer any excess CENVAT credit of Central excise duty or service tax, accumulated in one manufacturing unit or service providing unit to any other eligible unit of his choice through a simple mechanism. They will also have the facility of removing capital goods and inputs from one unit to any other unit of its choice, he added.

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