Meaning of Large tax payer, their eligibility criteria, and procedure under service tax
Eligibility criteria to become large tax payer
Any person, engaged in the manufacture or production of goods, or a provider of taxable service, has paid during the financial year 2004-05 or during the financial year preceding the year of filing of application under para 3(i), –
a) Duties of excise of more than rupees five hundred lakh (5 crores) in cash or through account current; or
b) Service tax of more than rupees five hundred lakh (5 crores) in cash or through account current; or
c) Advance tax of more than rupees ten hundred lakh (10 crores) under the Income Tax Act, 1961
And is presently assessed to income tax or corporate tax under the Income Tax Act, 1961, under the jurisdiction of Chief Commissioner of Income Tax to any of five cities (Delhi, Mumbai, Chennai, Calcutta, and Bangalore) is an eligible taxpayer for the purpose of being served by LTU.
A large taxpayer who satisfies the conditions mentioned above may file an application form in the format annexed duly completed in all respects to the Chief Commissioner of Central Excise, Large Taxpayer Unit for the city where the large taxpayer is presently assessed to income tax or corporate tax indicating his willingness to be a large taxpayer.
A person willing to operate as large taxpayer shall furnish details of each of the premises already registered under the Central Excise Act, 1944(1 of 1944) including the premises of first and second stage dealers and each of the premises registered under Chapter V of the Finance Act, 1994 including the premises of input service distributor.
The Chief Commissioner of Central Excise, Large Taxpayer Unit may after due verification of the application form, grant the acceptance in writing.
Existing registrations under the Central Excise Act, 1944 or Chapter V of the Finance Act, 1994 shall continue. However, in case a new factory or service provider, input credit distributor or first or second stage dealer which becomes liable to be registered, after opting as large taxpayer, the application for such new registration shall be made before the Chief Commissioner of Central Excise, Large Taxpayer Unit.
Filing of Returns – The taxpayer will be required to file the direct taxes returns in the LTUs with respect to excise matters. Individual returns will be filed for all units (as is being done presently). However, all the unit returns will be filed with LTU office. Option will be given to the taxpayer for e-filing the returns.
Payment of Taxes -The facility for payment of the three taxes through the Internet will be provided by the LTUs. The excise duty/service tax payable will be paid by the taxpayer separately for individual units. As mentioned however, the taxpayer will have the option to transfer any excess CENVAT credit (of central excise duty or service tax) accumulated in one manufacturing unit or service providing unit to any other eligible unit of his choice under cover of a transfer voucher. The credit balances at both the units will have to be suitably adjusted by the respective unit. In case duty/service tax is paid in excess of the amount due, the taxpayer can adjust it againsthis future tax/duty payments. For this purpose he shall take credit of the excess tax/duty, as if the same was tax/duty paid on his inputs, capital goods or input services. However, these adjustments will be allowed only under the same accounting head. In case a taxpayer wants to transfer inputs, capital goods or finished goods from one of his units to another, the same can be done without payment of duty on a challan. Both the units will have to maintain records showing receipt and dispatch.
CONSENT FORM FOR COMPANIES OPTING TO FUNCTION AS A LARGE TAXPAYER
M/s ________________________________, hereby gives consent to be administered as a large taxpayer under the Large Taxpayer Unit situated at _______________________ (Bangalore/Chennai/Delhi/Kolkata/Mumbai). Following information regarding the company is furnished.
Address as in last income-tax return filed :
Jurisdiction of Assessing Officer before whom income-tax return is filed :
Details of registration (under Central Excise Rules, 2002, and Service Tax Rules, 1994) :
Name and address of the Unit Excise Registration No. and particulars of present jurisdiction Dealer Registration No. and particulars of present jurisdiction EOU Registration and particulars of present jurisdiction Service tax Registration and particulars of present jurisdiction Input Service Distribution Registration No. (ISDN) and particulars of present jurisdiction Others* (please specify including particulars of present jurisdiction)
( *including exempted units)
Details of TAN allotted and TDS returns filed in the following format:
S.No. Name and address of the Deductor TAN TDS effected under section(s) ______ of the IT Act, 1961 Jurisdiction of CIT before whom TDS return filed
Details of total taxes paid by the company during financial year 2004-05 or any subsequent financial year preceding the year of filing of consent form.
(i) Financial year
(ii) Excise duty through cash (account current)
(iii) Service tax through cash (account current)
(iv) Advance tax (income tax/corporation tax)
Name, designation, phone and fax numbers and e-mail address of the contact person(s) of the company (to be authorized by the company).
(Name and Designation of the person authorized u/s 140 of the IT Act, 1961)