New Delhi, June 24: Government is considering making it mandatory for companies paying advance tax of over Rs 10 crore annually to register with the LTU (Large Taxpayers Unit), a move likely to augment and streamline tax collection.
A four-member committee has been set up to look into the various aspects of LTU, a single window clearance for all matters relating to central excise, income tax/ corporate tax and service tax.
"The committee is also examining whether to make it mandatory for companies who are paying advance tax more than Rs 10 crore in a fiscal year or service tax more Rs 5 crore to register under LTU," a senior finance ministry official said.
At present, it is voluntary for large tax payers to register under LTU.
The first LTU was set up at Bangalore in 2006 followed by Chennai, Mumbai and Delhi.
As a measure of facilitation and in line with international practices, the government has announced setting up of the LTUs in 2005-06.
LTUs, as per the Finance Ministry, provide better service to the taxpayer, through personalised attention, quality of service and transparency in transactions.
These units reduce tax compliance cost, delays and ensure uniformity in the matters of tax/ duty determination.
A LTU is headed by a Chief Commissioner, either from Central Board of Direct Taxes (CBDT) or Central Board of Excise and Customs (CBEC).
Government has set a Rs 12.35 lakh crore total tax revenue target (direct and indirect taxes) for the current fiscal, up from Rs 10.38 lakh crore estimated in the previous fiscal.
Last month, Parthasarathi Shome – adviser to finance minister P Chidambaram – had hinted that at one point the government might make LTUs mandatory for eligible entities.