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Revenue from Commercial taxes set to cross Rs. 30,000 crore

January 13, 2011 10:56 pm | Updated 10:57 pm IST - CHENNAI:

Commercial Taxes Minister S. N. M. Ubayadullah inaugurating Large Taxpayer Unit in Chennai on Thursday. ( From left) Commercial Taxes Secretary Md. Nasimuddin, Commissioner of Commercial Taxes, S. Krishnan and Director of Treasuries and Accounts V. Palanikumar are in the picture. Photo: V. Ganesan

The revenue from Commercial Taxes in the State is all set to cross the Rs.30,000-crore mark in the current year, said S.N.M. Ubayadullah, Commercial Taxes Minister, on Thursday.

Inaugurating a Large Taxpayers' Unit (LTU) of Commercial Taxes Department, he told The-Hindu that in the last five years, the commercial taxes collection had increased from Rs.16,616 crore and it was set to cross the Rs.30,000-crore mark.

With the inclusion of VAT compensation of Rs.3,040 crore and CST Rs.2,400 crore, it would be well over Rs.35,400 crore.

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According to the Minister, the monthly collection was around Rs.2,500 crore and it represented a 25.94 per cent growth over the corresponding period last year.

Up to December 2010, the department collected Rs.22,890 crore. It was decided to form an LTU to provide better services to dealers under one roof, as they contributed 60 per cent of the State's tax receipt.

“Income Tax LTU gave us the inspiration to form this LTU. Nearly 170 dealers, who have a taxable turnover of more than Rs.200 crore, would be provided service by 43 dedicated officers. It would be headed by S. Kumaraguruparan, Commercial Tax Joint Commissioner.

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The dealers largely represented big manufacturing houses and sectors such as petroleum firms, sugar, distillery, pharmaceuticals and automobile,” said Md. Nasimuddin, Commercial Taxes Secretary. Of the total collections, the electronic mode of payment accounted for Rs.1,400 crore per month. So far, the dealers were making payment of taxes electronically through State Bank of India.

It was being extended to Indian Bank, Indian Overseas Bank and Bank of Baroda. Another five banks would be added soon, said S. Krishnan, Commissioner of Commercial Taxes.

The LTU is located on the 5th floor of Dugar Towers on Marshals Road. It will function from 9 am to 5 pm from Monday through Friday.

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