Wednesday, December 28 2005 15:14 Hrs (IST) - World Time -

New Delhi: Disfavouring 'blunt' steps like search and seizures, Finance Minister P Chidambaram today (Dec 28, 2005) invited 582 top corporates to avail a single-window tax payment facility and promised to set up a National Tax Tribunal next year to cut disputes and improve collections.

"Taxes must be paid...I don't believe in blunt measures like search and seizures. Sometimes we have to use blunt instruments," he said flagging off the road show for Large Taxpayers Unit here.

Corporates can confirm their participation in LTUs before January 10, so that the tax departments could assess the taxes from next fiscal. "I promise you that LTUs will be modern offices and assessment and payment will be through electronic media. Senior officials will assist you", he said.

"LTUs will give an opportunity to taxpayers and collectors to discharge obligation in a hassle-free and dispute-free manner. The cost of compliance will also come down", Chidambaram said.

The facility of filing Excise, Corporate Tax and Service Tax under one roof would be 'optional' for companies paying excise over Rs 5 crore and assessed by Income tax in any of the five cities; Delhi, Mumbai, Chennai, Bangalore and Kolkata, where LTUs would be set up initially.

Chidambaram said geographical reach and eligibility criteria could be extended. Of the 582 large corporate tax payers, 145 can avail the LTU facility in Delhi, 196 in Mumbai, 101 in Kolkata, 84 in Chennai and 56 in Bangalore.

The minister said a bill for setting up a National Tax Tribunal was introduced in the winter session and is now with Standing Committee of Finance and is expected to be taken up in the Budget session.