Single-window for LTUs by Oct

Revenue department may relax the eligibility norms for companies to avail of this facility.

Single-window facility for large taxpayer units (LTUs) is expected to be operational from October. The tepid response from the targeted corporates has prompted the revenue department to consider relaxing the eligibility norms for companies to avail of this facility.

At present, the eligibility norms specify that a taxpayer (PAN-based entity) should be assessed for income or corporation tax in any of the five cities: Bangalore, Chennai, Delhi, Kolkata or Mumbai. The new norms may be a throwback to the original proposal that specified Rs 1 crore excise payment as the only criteria.

This was subsequently changed to the present one, where a taxpayer should have paid either excise of more than Rs 5 crore in cash or a service tax of Rs 5 crore or more, or an advance income or corporation tax of Rs 10 crore or more, during 2004-05.

Joining an LTU is optional. Tax payers will be able to file their direct and indirect tax returns at such LTUs. The concept was first mooted in Budget 2004-05.

The finance ministry reckons that the existing eligibility norms make around 900 units members of the LTU club. The revenue department has asked chief commissioners of excise, Customs, service and income tax to obtain feedback by March-end from eligible taxpayers on the proposed structure of the LTUs.

A detailed note is being sent by the department to each eligible tax paying entity specifying the functions, benefits and facilities offered by the LTUs.

In addition, to avail transfer of excess cenvat credit and refund within 30 days, once a taxpayer opts for the scheme, they will not have to undergo suo-moto visits from field officers.

Also, cases, where show cause or demand notices were issued earlier, would not be adjudicated and shall stand transferred to the LTU.

All documents pertaining to exports and imports can also be filed with the LTUs and taxpayers would be eligible for 'self-sealing' in the case of exports.