Soon, it’ll be easy for large taxpayers

Inspired by the project’s success in Bangalore, The Income Tax department may soon set up the Mumbai chapter of the Large Taxpayer Unit (LTU) scheme. 

A seminar in this regard was held in the city on Friday. Experts and senior tax officials spoke about the nuances of the single-window LTU scheme and how the facility could be replicated in Mumbai. The city accounts for 40 per cent of the country’s total direct tax collections.

The LTU plan aims at creating a favourable ambience, thereby facilitating greater voluntary compliance on the part of taxpayers. Tax payers with tax obligations of over Rs5 crore can opt for this scheme.

“It is about ensuring the hassle-free enforcement of tax laws. The LTUs are self-contained tax administration offices and act as a single interface point relating to I-T, excise, corporate and service tax matters,” said Sunil Ramani, a partner in Ramani Legal Services — who carried out a feasibility study for the project. 

Speakers at the seminar also hailed the LTU as the single most significant innovation in the tax administration system.
Speakers also felt that the LTU has been implemented in most developed and some developing countries. 

The scheme aims at reducing tax compliance costs and delays and ushering in uniformity. The LTUs are likely to be manned by representatives drawn from the customs, excise and I-T departments, and will also sport’client relationship executives.