LTU DRAFT NOTIFICATION
With hardly fifteen days left for the first LTU to start functioning from Bangalore, the Government has announced the draft rules and Notification. They want the comments of the citizens by 15th of September. They have given whole of three days time to the people to send their suggestions and comments, So hurry up and get ready with your comments.
Here are the highlights of the Scheme:
1. Large taxpayer has been defined as a person who has one or more premises registered under Central Excise or one or more premises under Service Tax and is an assessee under Income Tax and satisfy the conditions and observe the procedure.
2. Conditions: Other than Tobacco and Pan Masala manufacturers should have
i. paid more than 5 Crore Rupees of Excise Duty in cash or through account current (or)
ii. Paid more than 5 Crore Rupees of Service Tax in cash or through account current (or)
iii. Paid more than Rupees 10 hundred lakhs of advance tax under Income Tax
And is assessed to Income Tax under the Chief Commissioner of Income Tax -I Bangalore and Chief Commissioner of Income Tax – II Bangalore.
DDT’s observation:
1. How do you pay Central Excise duty by cash? Go and give it to the Chief Commissioner
2. How do you pay Service Tax through account current? Is there any account current for Service Tax
3. What is 10 hundred lakhs? In the Indian system there is a word for hundred lakhs unlike the western system.
4. Is it necessary for the assessee to be under the jurisdiction of both the Chief Commissioners of Income Tax Bangalore- I and Bangalore – II ?
5. Why specifically mention Bangalore ? Is it going to be the first and last LTU
Procedure:
i. Application in the proper form to be filed with the Chief Commissioner LTU (Draft Application Form has not been issued).
ii. Details of all premises to be furnished.
iii. Chief Commissioner, LTU will communicate acceptance in writing.
iv. Existing Central Excise and Service Tax registration to continue. New Registrations to be granted by Chief Commissioner LTU.
Draft Amendment to Central Excise Rules – New Rule 12BB
Inter unit Transfer without payment of duty: A new rule 12 BB is being inserted in the Central Excise Rule to allow transfer of intermediate goods from one factory to another within the LT. This facility will not be available for those availing certain exemptions like North East , Kashmir, Uttaranchal, Oil Refineries and EOUs.
Self credit of excess Excise duty:- if any LT has paid excess duty due to arithmetical error, this can be adjusted against future duty liability.
Records to be made available in Electronic media. An LT will be required to make available records of productions, credit etc in Electronic media.
Quit but with 30 days notice: if you are not happy with LTU, you can opt out by giving 30 days notice but from the first day of the next financial year.
All other rules to apply: all other provisions of the Central Excise rules will apply mutatis mutandis to a large tax payer.
Proposed amendments to Cenvat Credit Rules
Definition: Large Taxpayer to have the same meaning as in the Central Excise Rules.
Movement of inputs: Inputs on which credit has been taken can be sent to any other registered premises of the LT.
Transfer of Credit: Cenvat credit can be transferred within units owned by the same LT.
Draft Amendments in Service Tax Rules 1994
Similar amendments are proposed in the Service Tax Rules.
Comments may be sent to hema.priya@nic.in