Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
 
 
 
 
Popular Search: TDS :: list of goods taxed at 4% :: VAT RATES :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: ARTICLES ON INPUT TAX CREDIT IN VAT :: ACCOUNTING STANDARDS :: articles on VAT and GST in India :: due date for vat payment :: TAX RATES - GOODS TAXABLE @ 4% :: cpt :: VAT Audit :: ACCOUNTING STANDARD :: form 3cd :: Central Excise rule to resale the machines to a new company :: empanelment
 
 
Sales Tax »
 India finalises bills to launch new sales tax in July
 NMC to implement new tax system from Apr 1a
 13 per cent sales tax boost post demonetisationa
 Arun Jaitley May Lower Corporate And Income Tax Rates But Hike The Service Tax Rate
 Tax on high seas sales becomes dispute area
  State extends GST enrolment deadline
 State extends GST enrolment deadline
 To protect its status, state forms panel to draft legislation on GST
 India Fails to Break Deadlock on New Sales Tax
 Sales tax staff protest against goods service tax council
 Income tax survey on city jeweller

RIL withdraws notice to suspend gas supply to UP plants
October, 07th 2011

After threatening to cut supplies, Reliance Industries today withdrew the notice for suspension of natural gas supplies to four fertiliser plants in Uttar Pradesh saying it will work with urea manufacturers to resolve outstanding issues.

RIL had on October 1 served a notice for suspension of supplies to plants of Indo Gulf Fertiliser, IFFCO, KRIBHCO Shyam Fertilisers and Tata Chemical from 0600 hours today if they failed to enhance the financial guarantees to cover for state sales tax.

"In view of the assurances given by Director General, Fertiliser Association of India that immediate steps would be taken to address the concerns raised by RIL, we are, without prejudice to our rights and contentions, not immediately implementing the suspension of supplies but retain the right to suspend the supplies without any further notice," RIL wrote to the fertiliser firms today.

The fertiliser firms, which produce about 2 million tons of urea from gas sourced from RIL, had previously opposed providing financial guarantees in form of letter of credits to cover for liability arising from levy of local sales tax on gas sales, as it would increase cost of production and subsidy payout.

RIL supplies some 4 million standard cubic meters per day of natural gas from its eastern offshore KG-D6 fields to these plants. Like elsewhere in the country, it has been charging central sales tax of 2 per cent from users in Uttar Pradesh.

However, the state government has refused to accept it as interstate sale and has demanded local sales tax of 21 per cent.

Tax is a liability of consumers which had been clearly enshrined in the Gas Sales and Purchase Agreement (GSPAs) RIL had signed with fertiliser and other users.

Naturally, users should have contested the demand for higher sales tax but strangely, RIL went to the Allahabad High Court challenging the demand.

The High Court on July 26, 2010 stayed the Uttar Pradesh government demand.

The state government has appealed against the stay in Supreme Court.

Sources said RIL is demanding that users in Uttar Pradesh enhance value of Letter of Credits, that had been previously submitted as guarantee against default, to cover for payments in case the state sales tax liability was to materialise.

So far, only state power utility NTPC is the only firm that has enhanced LCs while fertiliser firms have not done so, leading to the notice for suspension of supplies.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Enterprise Resource Planning Solutions ERP Solutions Enterprise Resource Planning Software Solutions ERP Software Solutions Supply Chain Management Solutions SCM Solutions Supply Chain Management Software Solutions SCM Software Solutions Enterprise Resource Planning Solutions India ERP Solutions India Enterprise Resource Planning Software Solutions India ERP Software Solutions India Supply Chain Management Solutions India SCM Solutions India Supply Chain Management Software Solutions India SCM Software Solutions India

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions