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: empanelment :: cpt :: TAX RATES - GOODS TAXABLE @ 4% :: ACCOUNTING STANDARDS :: list of goods taxed at 4% :: articles on VAT and GST in India :: VAT RATES :: TDS :: due date for vat payment :: ACCOUNTING STANDARD :: ARTICLES ON INPUT TAX CREDIT IN VAT :: form 3cd :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: Central Excise rule to resale the machines to a new company :: VAT Audit
 
 
« General »
 India should cut corporate tax, opt for inheritance levy: OECD
 Tax savings that do not actually help save much
 Indirect tax officers seek PM Modi’s intervention for smooth roll-out of GST
 Income Tax and Budget 2017: Here’s all you need to know about tax maths for let-out property
 Tax Department To Launch 2nd Phase Of Bank Accounts' Scrutiny Next Month
 How to claim tax benefit on tuition fees under Section 80C
 Online Income Tax grievance redressal facility launched at 60 offices
 Demonetisation impact on government tax revenue marginal; direct tax personal income grew at above budget estimates
 ICAI seeks more accountability, transparency in defence sector
 Will Budget help double farmers’ income?
 Verify online deposits made post demonetisation, income tax department asks taxpayers

Direct fuel import may not be easy for Kingfisher
November, 17th 2011

Kingfisher Airlines chief, Mr Vijay Mallya, might end up buying more trouble if the Government actually accepts his plea to be allowed to directly import jet fuel.

High infrastructure and product transportation costs could negate the benefits which Mr Mallya is looking to gain from saving sales tax paid on the product.

Reeling under a severe financial crunch, Kingfisher had approached the Directorate-General of Foreign Trade for direct import of jet fuel to save sales tax.

Oil industry officials said that merely importing the product would not be enough. The company will need to spend a significant amount on building port/airport infrastructure, transport, facility to fuel the aircraft, and skilled manpower. For instance, the existing infrastructure, built years ago, had cost the oil companies around Rs 60-100 crore at each centre.

They wondered whether Kingfisher has enough resources, including land, to build the infrastructure. Also, oil industry sources wondered whether Kingfisher would be able to pay for the imports in dollars, when it is unable to clear its mounting domestic fuel bills.

If Kingfisher does not create its own fuel-handling infrastructure, it would have to pay the oil companies to use their infrastructure, which may prove both difficult and expensive.

If allowed to import directly, Singapore could be the cheapest source, industry experts said. Reports suggest that jet fuel cost in some States is around 70 per cent more than what it is overseas. Jet fuel import is currently canalised through state-owned oil companies. Kingfisher would need to get a No-Objection Certificate' from them for direct import. Official sources said there have been cases where the Government has given exemption for some other items.

MAY TRIGGER CHANGE IN POLICY

The Government may consider changing its policy on jet fuel if it finds merit in Kingfisher Airlines' application to directly import the fuel, according to top Commerce Ministry sources.

While maintaining that they were not aware of any such application so far from either Kingfisher Airlines or any other airline company, the sources admitted Kingfisher's plea could become a test case for allowing airlines to directly import fuel.

If it comes to such a stage, then the Government will have to consider the reasons behind the restriction on import and whether it was valid in today's scenario.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Software Reengineering Software Re-engineering Software Reverse Engineering Software Reverse Development Software Change Modulation Software Conversion Software Re-creation Software Re-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