ITC may not qualify for Kolkata LTU facility
Cigarette to diversified conglomerate, ITC Ltd, may not qualify for entry into the proposed Large Taxpayers Unit (LTU) here for association with tobacco.
Kolkata: Cigarette to diversified conglomerate, ITC Ltd, may not qualify for entry into the proposed Large Taxpayers Unit (LTU) here for association with tobacco.
"There is prohibition of entry to the LTU on companies engaged in tobacco and gutka," Chief Commissioner of Income Tax (Kolkata) D Dasgupta said Tuesday.
"But, we will have to look into the issue as ITC is not just a tobacco company and has many other products," he said on the sidelines of an awareness campaign on LTU organised by the Bengal Chamber.
ITC is a large taxpayer of the country and in FY12, its income tax was close Rs 2,800 crore.
Attempt to contact the ITC spokespersons on the issue proved futile.
The Kolkata LTU, fifth in the country will be operational in June, 2013.
An excise official said so far two companies have joined LTU.
The Union Finance Ministry introduced the concept of LTUs in 2005-06 as a single window to handle all matters relating to central excise, income tax, corporation tax and service tax.
Taxpayers assessed in a city where an LTU is located and who have paid excise duty or service tax exceeding Rs 5 crore or income tax above Rs 10 crore could optionally register with the LTU.
Four LTUs in Delhi, Mumbai, Bangalore and Chennai are operational.
Meanwhile, Parthasarathi Shome -- adviser to Finance Minister P Chidambaram -- who was also present at the event expressed, hope about the success of the LTU for its inherit benefit of service.
He hinted that at one point the government might make LTUs mandatory for eligible entities.