Latest Expert Exchange Queries

GST Demo Service software link: https://ims.go2customer.com
Username: demouser Password: demopass
Get your inventory and invoicing software GST Ready from Binarysoft info@binarysoft.com
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) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
 
 
 
 
Popular Search: TDS :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: TAX RATES - GOODS TAXABLE @ 4% :: ACCOUNTING STANDARDS :: VAT Audit :: ACCOUNTING STANDARD :: due date for vat payment :: form 3cd :: list of goods taxed at 4% :: articles on VAT and GST in India :: ARTICLES ON INPUT TAX CREDIT IN VAT :: cpt :: empanelment :: VAT RATES :: Central Excise rule to resale the machines to a new company
 
 
« News Headlines »
 How to respond to a tax notice under section 143
 Income-tax (22nd Amendment) Rules, 2017
 All about Exports under GST
 Have you missed the due date of filing your Tax Returns?
 What you should know about income tax refunds
 Income tax scrutiny to remain limited despite surge in returns filed
 Regarding Filing of online return for first quarter of 2017-18 extension upto 01-09-2017
 Deadline to file returns extended to 28 August for biz with transitional
 GST input tax credit form
  How to rectify income tax returns
 Govt extends tax exemption for industry in North East, hilly states

Service tax waiver for exploration firms likely
February, 22nd 2008
Companies exploring oil and gas in the country are likely to be exempted from paying service tax of 12 per cent in the coming Budget.
 
The tax, which was introduced for oil exploration companies in the last years Budget, has been resisted by the industry since its introduction.
 
The waiver of tax is aimed at encouraging global companies to bid for exploration licences under the upcoming seventh round of the New Exploration and Licensing Policy (Nelp-VII).
 
Since exploration for oil and gas is a high-risk business, and not every project results in a discovery, the finance ministry will take up the issue of waiving the service tax component for oil exploration companies in the coming Budget, said a senior government official. The petroleum ministry has also included this in its Budget recommendations.
 
Total service tax collections in the current financial year are expected to be Rs 50,000 crore, of which around Rs 600 crore have been contributed by the exploration and production companies.
 
If the tax is withdrawn, the impact on tax collections will not be huge, said a senior petroleum ministry official.
 
The country imports almost 75 per cent of its crude oil requirement. The oil import bill rose 29.5 per cent to $48.02 billion in the first nine months of the current financial year, compared with the same period last year.
 
We need to encourage more global companies, which have the right technology to find oil and gas in the country, in order to meet our growing energy needs, the oil ministry official said.
 
Service tax is usually paid by the firms providing services at the drilling locations of the oil companies. The tax is, however, a pass-through, which increases the overall cost of services for the oil firms.
 
Cost of services has anyway more than doubled in the last couple of years. The additional service tax brings in more uncertainty in the sector, said a senior official with an oil exploration company.
 
The shipping costs of oil exploration companies can also increase if the service tax applies to operations of offshore supply vessels transporting materials to and from offshore drilling sites to the shore.
 
Oil and Natural Gas Corporation (ONGC), the countrys largest oil and gas exploration company, currently operates around 125 offshore vessels in the west coast alone. It pays charges between $1,700 and $19,000 per day depending on the type of vessels.
 
The industry has been of the view that the tax net does not extend to supply vessels as they are not included in mining and drilling operations, for which the tax was introduced.
 
The government, however, says that drilling operations cannot be seen in isolation and all allied services also come under the tax net.
 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Application Management Solutions Application Management System Application Management Software System Application Management Development Application Management Software 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