Central Excise - Procedure and facilities for Large Tax Payer

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Procedure and facilities for Large Tax Payer [Section 12-BB]:

LTU is a single window clearance system for all matters relating to Central Excise, Service Tax, Income Tax and Corporation Tax, headed by chief commissioner of Income Tax or Central Excise.

Assessees under Central Excise, Service tax and Income Tax who have paid:

-Rs. Five crore or more through PLA or

-More than Rs.10 Crore as Advance tax or Corporation Tax,

may join the scheme by choice. They are called Large Tax Payers. LTUs are now functioning in Bangalore, Chennai and Mumbai. For opting out of the scheme, 30 days notice is necessary and w.e.f the first day of the following financial year.

Advantages:

• Assessement for all premises is done at one place.
• Intermediate goods (Other than petrol, HSD and LDO) may be removed from premises to premises (under transfer challans) without paying duty.
• The recipient premises shall complete manufacture and remove the goods (DTA/Export) as per rules within six months.
• If not, the recipient premises shall pay duty as on the date of removal from the sender’s premises along with the interest @ 13% p.a.
• Self-rectification of arithmetical errors and consequent adjustments of duty paid in excess.
• This adjustment is subject to the principle of unjust enrichment.