Mumbai to get LTU for corporate tax payers this week

Finally, Mumbai will get its large tax payers unit (LTU) which opens for customers (corporate tax payers) on March 28.

As of now, 18 assessees have given their consent to be assessed under the LTU. These include Union Bank of India, Bank of India, Bajaj Auto, Bayers' Crop Science , Cipla , Lupin, Supreme Industries, Rashtriya Chemical and Fertilisers, Monsanto Chemicals, Hindusthan Organics, among others.

An LTU would serve as a single-window facility for all matters related to central excise duty, service tax, corporation and income-tax.

However, the companies which have not opted to join the LTU have a different story to tell.

According to sources close to the development, most of the companies are used to being assessed under a given system.

They will wait for others to join and see how it performs over a period of time, said sources. Moreover, there has been no incentive for any company to join LTU.

Sources said the LTU should offer some relaxation in terms of cutting down the penalty structure or enhancing the process of refunds or bring down the hierarchy of appeals to lure companies to join the LTU.

At present LTUs are operational in Chennai and Bangalore. A company becomes eligible to pay taxes at such a unit by fulfilling any of the three criteria, such as either it pays at least Rs 5 crore central service tax or pays at least Rs 5 crore central excise duty or at least Rs 10 crore advance tax.