India must focus on data mining: Shome

"There is need to strengthen LTUs and focus on data mining and analysis of tax administration," Shome who is also a professor at the Delhi based-think tank Indian Council for Research on International Economic Relations (ICRIER) said.

LTUs are self-contained tax administration offices under the Department of Revenue acting as a single window clearance point for all matters relating to central excise, income tax/corporate tax and service tax.

Entities would be able to file their excise return, direct taxes returns and service tax return at such LTUs and for all practical purposes will be assessed to all these taxes at these LTUs.

Shome, who is the head of the panel on GAAR set up by Prime Minister, was addressing the delegates at a seminar organised jointly by FICCI and International Chamber of Commerce (ICC) here.

Finance Minister P Chidambaram had earlier proposed setting up LTUs in Budget 2005-06, with a view to reduce the tax compliance costs and delays for the LTUs.

Currently, LTUs function in Bangalore, Chennai, Mumbai and Delhi, but the scheme has not been successful as not many taxpayers volunteer for fear of closer scrutiny.

The scheme entailed opening up of a single window facilitation centre for all large entities paying excise duty, corporate tax/income tax and service tax.

It was supposed to cover those units who paid excise duty or service tax of Rs 5 crore or more or a

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