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: form 3cd :: ACCOUNTING STANDARD :: Central Excise rule to resale the machines to a new company :: VAT RATES :: list of goods taxed at 4% :: TAX RATES - GOODS TAXABLE @ 4% :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: due date for vat payment :: ACCOUNTING STANDARDS :: cpt :: ARTICLES ON INPUT TAX CREDIT IN VAT :: articles on VAT and GST in India :: TDS :: empanelment :: VAT Audit
 
 
News Headlines »
 Looking for last-minute tax planning with Section 80C investments? Here's help
 Aadhaar mandatory for filing income tax return
 Will Aadhaar linkage solve India's income tax woes?
 GST roll out from July 1 will make goods cheaper: Jaitley
 Aadhaar To Be Mandatory For Filing Income Tax Return, PAN Application
 7 best tax-saving solutions which can help you save money
  No proposal to replace Income Tax with Banking Cash Transaction Tax
 How to Make Tax Saving Investments Less Taxing with an SIP in ELSS
 NRIs having only investment income may not file tax returns
 With income tax returns filing deadline near, here are 3 major things to do before March 31
 When public becomes tax gatherer

Excise rejig in pipeline to cool oil
November, 13th 2007

The government is considering an excise duty rejig to minimise the impact of soaring crude oil pirces on both consumers and oil companies. At present, the excise duty on petrol and diesel has two components: a 6% ad valorem duty that varies with the basic price and another duty specified per litre.

The oil ministry has proposed that the ad valorem duty be replaced by a larger specific duty. It has also proposed that the new specific duty rate should be lower than the combined duty by Rs 2 per litre. Currently, the excise duty is 6% plus Rs 13 per litre for petrol and 6% plus 3.25 per litre for diesel. This is inclusive of the road cess but excludes the 3% education cess.

Sources said the petroleum ministry has been pressing for an excise duty restructuring to provide immediate relief to public sector oil marketing companies (OMCs) that are losing over Rs 240 crore everyday on the sale of petroleum products. The ministry has argued that the move could also provide a cushion against international crude oil price volatility.

Global crude prices are nearing $100 per barrel. On Wednesday, oil had touched a record $98.62 per barrel-mark in the US. The Standing Committee of Parliament on petroleum has also recommended the removal of the ad valorem component of the excise duty on petroleum products.

Advocates for an excise duty rejig also cite the Rangarajan Committee report on pricing and taxation of petroleum products, which states that ...imposing ad valorem duties during a time of persistent price increase is debatable.

Not only do ad valorem levies exacerbate the burden on the consumer, but they also result in the government willy nilly benefiting through higher tax yields, making it vulnerable to the criticism of profit at the expense of consumers. There is, therefore, need for both softening and smoothing the impact on the consumers of international price variations and for the government sacrificing windfall gains in revenue.

The Centres total revenue earning in 2006-07 stood around Rs 93,800 crore from petroleum, of which over 55% (Rs 51,920 crore) was excise duty mop up.

As per an estimate, the current incidence of excise duty on petrol is about Rs 15 per litre and is Rs 5 per litre on diesel. Officials supporting the move argued that the high excise duties on fuel were inconsistent with the current scheme where the government, on the one hand, was providing compensation to oil marketing companies and on the other, levying high excise duty on petrol and diesel.

The government had earlier eliminated excise duties on both PDS kerosene and domestic LPG. Perhaps there is a case to lower taxes on petrol and diesel, an official said.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Web Application Development Web based Software Solution Web Application Deployment Web Application Solutions Web Application Software Development Web Application Deployment Web Application Programming Web Application Design and Development

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