First LTU at Bangalore on Oct 1

NEW DELHI: The much-delayed Large Taxpayer Unit (LTU) will be operational at Bangalore from October 1, while the second unit would come up at Chennai on January 1, 2007.

LTUs are designed to act as a single window facilitation centre for all large entities paying excise duty, corporate tax, income tax and service tax.

However, corporates in Delhi, Mumbai and Kolkata would have to wait for the LTUs till some time next year.

"The LTU at Bangalore will start functioning from October 1," Central Board of Excise and Customs chairman V P Singh said who added that the LTU in Chennai was scheduled to come up on January 1, 2007.

The government had announced in Budget 2005-06 that initially LTUs would be set up in five metros - Delhi, Mumbai, Bangalore, Chennai and Kolkata - in the beginning of fiscal 2006-07.

But the project is delayed and is running behind schedule in almost all the cities.

"Delhi LTU would hopefully come up in the first half of next year," Singh said, adding that the responsibility to set up LTUs at Bangalore, Chennai and Kolkata lies with the CBEC.

Central Board of Direct Tax (CBDT) will be setting up LTUs at Delhi and Mumbai as well.

Entities that have paid excise duty or service tax of Rs five crore in cash, or Rs 10 crore as advance income or corporate tax in 2004-05 are eligible for getting single window clearance facility in LTUs.