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: articles on VAT and GST in India :: TAX RATES - GOODS TAXABLE @ 4% :: VAT Audit :: list of goods taxed at 4% :: empanelment :: form 3cd :: Central Excise rule to resale the machines to a new company :: due date for vat payment :: VAT RATES :: cpt :: ARTICLES ON INPUT TAX CREDIT IN VAT :: TDS :: ACCOUNTING STANDARDS :: ACCOUNTING STANDARD :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes
General »
 Banks warn share tax hike threatens Paris' post-Brexit appeal
 PMC may decide on property tax rebate for IT firms this week
 I-T Dept is giving out certificates of appreciation. Have you received yours?
 Government works on ironing out benefits refund mechanism for exportersa
  Tax officials are using an IDS provision to question transactions beyond six-year-limit
 Tax-free bonds rally like midcap funds
 Senior citizens do not have to pay advance tax on salary and interest income
 GST: Audit commissioners to get adjudication powers
 Interest on NRE rupee account can be exempt from tax under FEMA
 Impact of GST on Real Estate Sector
 GST regime: Tax payers allowed to take option of third-party interfaces

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.


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 2016 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