Circular No. 833/10/2006-CX
Government of India
Ministry of Finance
Department of Revenue
Central Board of Excise & Customs
October 5, 2006
All Chief Commissioners of Customs and Central Excise
All Director Generals
All Commissioners of Customs and Central Excise
All Commissioners of Customs and Central Excise (Appeals),
Subject: Creation of a Large Taxpayer Unit (LTU) & Function and Powers of Chief Commissioner, LTU-reg.
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, which would service large taxpayers paying excise duty, corporate tax/income-tax and service tax under a single window. The Government has decided to implement the LTU scheme in a phased manner. The first Large Taxpayer Unit has been set up at Bangalore. LTUs will also be established in a phased manner in Chennai, Delhi, Kolkata, and Mumbai. The Chief Commissioner, Central Excise and Service Tax will head the LTU in Bangalore.
2. 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 the threshold limit as specified in the notification no. 20/2006 C.E (NT) dated 30.09.2006. It is a single office that would deal with central excise/service tax/ income tax/ corporate tax issues of all units holding a single PAN. All aspects of business in relation to Central Excise and Service Tax assessees such as filing of returns, scrutiny of returns, audit, giving various permissions, etc., shall be carried out by LTU for all the constituent units of a large taxpayer through out the country
3. A LTU will be headed by a Chief Commissioner (either from CBDT or from CBEC). The Chief Commissioner, LTU is expected to undertake following functions,-
Overall administration of LTU.
Co-ordination between the direct tax and the indirect tax wings of LTU.
Distribution of work amongst the LTU officers.
Monitoring of revenue collection.
Conducting Quality Assurance Checks/ taxpayer feedback system.
Devising effective taxpayer assistance system
Review of the orders passed by the Commissioners as adjudicating authority (as a member of Review Committee).
Issuance of trade notices/ circulars to bring about uniformity in tax administration as well as determination of amount of tax payable.
Coordination with the Boards (CBEC and CBDT), Directorates and with other field formations in the matters such as audit verification, revenue recoveries, etc.
4. There will be Commissioners posted in LTU, who would be holding executive and appellate charges. The powers and duties would be 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 will be posted by CBDT and CBEC. The Chief Commissioner, LTU will assign a Client Executive for each taxpayer from among the Additional/Joint/Deputy/Asstt. Commissioner posted in LTU, and the said Client Executive will be the single point interface with the large taxpayer for all purposes.
5. The officers posted in LTU will 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 will have concurrent jurisdiction. However, the interaction with these units will be limited to specific functions requiring physical presence of the officers for purposes as warehousing, sealing or any other work as assigned by the LTU.
6. The notifications prescribing jurisdiction and procedure regarding the functioning of the LTU have been issued on 30.09.2006
7. This issues with the approval of the Chairman, Central Board of Excise and Customs.
8. Receipt of the Circular may be acknowledged.
9. Hindi version will follow.
Under Secretary to the Government of India
Copy for information to:
1. J.S(Admn), CBEC
2. J.S(Admn). CBDT
3. PS to FM/MOS/PPS to RS
4. D.G. (Systems)
5. Shri Vikram Sahay, D.S. (IT-Inv.I), CBDT
6. Pr CCA
7. All sections of CBEC
Under Secretary to the Government of India