Chennai: Large Taxpayers Units (LTU) would soon be set up in New Delhi and Mumbai, similar to the ones opened in Bangalore and Chennai, Finance Minister P Chidambaram has said.
The LTU in Mumbai will come up next month, while in the national capital it will be opened in April, Chidambaram said inaugurating the country’s second LTU here yesterday.
The first LTU was set up in Bangalore in 2006.
“LTUs are being set up to find solutions to the difficulties faced by big organisations having branches or units in many parts of the country. This system is followed in many countries including our neighbours, Sri Lanka and Pakistan,” Chidambaram said.
As many as 25 big taxpayers have already registered themselves with the LTU in Chennai, Chidambaram said, adding that the unit was expected to collect Rs8,000 crore as various taxes.
The Bangalore LTU had collected Rs1,756 crore last financial year, he added.
LTU is a single-window facility for payers of large amounts of tax, including Central Excise, Corporate and Income Tax.
Those who had paid Rs5 crore as Excise Duty or Service Tax and an Advance Income Tax of Rs10 crore in the previous financial year are eligible to join the LTU, an official release said.