Large Tax Payer [Rule 10 of Service Tax Rules, 1994] :

LTU scheme is the beneficial scheme which would act as the single window facilitation centre for all large entities paying Central Excise Duty/Service Tax/Corporate tax. This was introduced as there was a need to monitor large tax paying entities in revenue interest [The concept of large tax payer has been discussed in detail in Chapter 5 of Module-1: Central Excise]. Rule 2(1)(cc) of the Service Tax Rules, 1994 defines “large tax payer” to have the meaning assigned to it in the Central Excise Rules, 2002.

Procedures and facilities for large tax payer: Rule 10 of the Service Tax Rules, 1994 lays down the procedure and facilities for the large taxpayer. The provisions of this rule are discussed below:

Notwithstanding anything contained in these rules, the following shall apply to a large taxpayer-

(1) A large taxpayer shall submit the returns, as prescribed under these rules, for each of the registered premises. A large taxpayer who has obtained a centralized registration under rule 4(2) shall submit a consolidated return for all such premises.

(2) A large taxpayer, on demand, may be required to make available the financial, stores and CENVAT credit records in electronic media, such as, compact disc or tape for the purposes of carrying out any scrutiny and verification, as may be necessary.

(3) A large taxpayer may, with intimation of at least 30 days in advance, opt out to be a large taxpayer from the first day of the following financial year.

(4) Any notice issued but not adjudged by any of the Central Excise Officer administering the Act or rules made thereunder immediately before the date of grant of acceptance by the Chief Commissioner of Central Excise, Large Taxpayer Unit, shall be deemed to have been issued by Central Excise Officers of the said unit.

(5) Provisions of these rules, in so far as they are not inconsistent with the provisions of this rule shall mutatis mutandis apply in case of a LTU.