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naroo (accountant) (184 Points)

16 March 2011

hi, all

I have few queries pl help me to come out of it.

1) who is large taxpayer. ?

2) who is input service distributor. ?

3) who are allowed to claim abatement and at what rate ?

4) what is service tax rate to be charged on renting cab? ( is there any way to know all service tax rate and abatement rate applicable on different kinds of services )

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2 Replies

Lalit Kumar (Vice President ) (2213 Points)
Replied 16 March 2011

THE CONCEPT OF LTU

Large Taxpayer unit i.e. LTU can be understood as a combined tax office acting as a single window clearance point for the three taxes i.e. Income Tax (personal and corporate), Central Excise and Service Tax in which returns of all these three taxes can be filed and assessed. LTU are administered by the Department of Revenue.

These units are set up to reduce the tax compliance cost of the Big tax payers and give them facility to fulfill their tax responsibilities at single place.

Big and eligible taxpayers who have more than one units working under them at different geographical sites and cities can file their returns at the LTU covering all such units irrespective their locations. The Formalities related to Assessment, rebate, refunds and appeals will also be completed at LTUs.

To avail the facility of LTU, the criteria are the cash tax paid during the FY and the units, which have paid: -

1. Excise duty in cash (account current) of Rs. 5 Crore or More; or

2. Service Tax in cash (account current) of Rs. 5 Crore or More; or

3. Advance Income Tax or corporate tax of Rs. 10 Crore or More.

The major Facilities at LTU are: -

1.The tax payer will file all his return i.e. Income tax return, Central excise return and Service Tax return to the LTU only i.e. at a single window. After getting membership of the LTU the units will file their quarterly TDS returns at LTU only.

2. Facility to pay service tax, income tax and central excise at LTU through Internet.

3. Inter unit transfer (Under the same PAN) of transfer of Cenvat credit, excess payment of service tax and excise duty under the same accounting head will be allowed.

4. All the rebate and refunds claims will be settled and disposed off within 30 days of their filing.

5.Digital signature certificate will be issued to the Taxpayer on his request free of cost and after that there will be no requirement to file the paper documents.

6. The taxpayer can take the help of the “Client executive” appointed at each LTU for tax matters connected with these three taxes. At every LTU a “Client executive” will be appointed and this client executive will help the taxpayers so that they need not to go every department of LTU for help.

7. The erstwhile jurisdictional field officers would not suo motuvisit or interact with the units having membership of the LTU.

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Lalit Kumar (Vice President ) (2213 Points)
Replied 16 March 2011

An ‘input service distributor’ is an office or establishment of a manufacturer of excisable goods or provider of taxable service. It receives tax paid invoices/bills of input services procured (on which CENVAT credits can be taken) and distributes such credits to its units providing taxable services or manufacturing excisable goods. The distribution of credit is subject to the conditions that,- (a) the credit distributed against an eligible document shall not exceed the amount of service tax paid thereon, and (b) credit of service tax attributable to services used in a unit either exclusively manufacturing exempted goods or exclusively providing exempted services shall not be distributed. An input service distributor is required (under section 69 of the Act, read with notification no.26/2005-ST) to take a separate registration.