Large Taxpayers Unit exceeds Central Excise revenue target

For the third time in a row, the Large Taxpayers Unit (LTU), Chennai, has exceeded its Central Excise revenue target.

However, it fell short of Service Tax and Income Tax targets.

Talking to

The Hindu , LTU Commissioner Naresh Penumaka said that they initially planned to garner Central Excise of Rs.4,487 crore for 2010-2011, but this was increased to Rs.5,455 crore sensing a revival in economy. The final tally was Rs.5,561 crore.

During 2009-2010, Central Excise collection was Rs.3,997 crore.

In the case of Service Tax, the original target was fixed at Rs.883 crore. LTU Chennai mobilised Rs.1,073 crore but, when compared with the revised target of Rs.1,180 crore, it fell short by Rs.107 crore.

Last year, LTU earned Service Tax of Rs.500 crore.

The Income Tax collection, including Corporate Tax, was Rs.3,841 crore against the targeted Rs.4,372 crore.

During 2010-2011, LTU Chennai refunded about Rs.600 crore as Central Excise and Service Tax refunds to taxpayers, registered evasion cases to the tune of Rs.15 crore and recovered Rs.45-crore drawback taken excessively, he said.

Established on December 1, 2007, LTU Chennai acts as a single window facilitation centre for all large entities paying excise duty, corporate tax/income tax and service tax.

The payment of taxes and filing of returns are done electronically.

LTU Chennai caters to 45 large taxpayers with more than 200 manufacturing units across India and 400 service tax registrations having a combined turnover of Rs.50,000 crore.

The major players are Hyundai, Ford, Chettinad Cement, CPCL, IOB, United Insurance, Simpson & Co. Ltd., EID Parry, Cognizant Technology Solutions and Chemplast Sanmar.

According to Mr. Penumaka, the Chennai zone other than LTU collected Central Excise of Rs.2,350 crore against its revised target of Rs.2170 crore and Service Tax of Rs.3,723 crore (Rs.3,720 crore).

The Central Excise collection from Tamil Nadu Coimbatore Zone was Rs.1,455 crore up by Rs.110 crore, but Service Tax collection was down Rs.92 crore at Rs.798 crore.