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: Central Excise rule to resale the machines to a new company :: VAT RATES :: TDS :: cpt :: due date for vat payment :: articles on VAT and GST in India :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: empanelment :: TAX RATES - GOODS TAXABLE @ 4% :: list of goods taxed at 4% :: ARTICLES ON INPUT TAX CREDIT IN VAT :: form 3cd :: ACCOUNTING STANDARDS :: ACCOUNTING STANDARD :: VAT Audit
« News Headlines »
 ICAI to organise two-day international conference in Hyderabad
 Here's how to calculate tax payable on your capital gains
 Income Tax calculations for the financial year 2016-17
 CPE Events 17 October - 22 October 2016
 High Court raps I-T Department for wrong tax demand
  CBDT signs 5 advance pricing pacts with Indian taxpayers
 Finance ministry warns tax officials of action against GST protest
 Big changes for small units under GST
 Parliament’s winter session to begin on November 16 to expedite GST rollout
 Income-tax (27th Amendment) Rules, 2016 - 92/2016
 Announcement - Clarifications in Respect of MEF 2016-17

Tax exemption on gas output unlikely soon
February, 03rd 2009

Energy firms may have to wait a little longer to avail a seven-year tax holiday on natural gas production. The Income-Tax department
is unwilling to allow tax benefit on production of natural gas as the matter is sub judice.

Companies producing crude oil, however, enjoy the tax incentive.

The issue is sub judice and it would only be appropriate to allow the courts to resolve this issue, a government official said, quoting a statement of the finance ministry. "This has been abundantly clarified by the finance minister in his reply to the debate on the Finance Bill, 2008 in the Lok Sabha," the statement, issued on July 1, 2008, said.

Petroleum minister Murli Deora had said on Sunday the government was considering a proposal to grant the tax incentive to companies engaged in production of natural gas in India.

At the time of inviting bids for exploration blocks under the seventh round of new exploration licensing policy (Nelp-VII) in June 2008, petroleum ministry had warned investors. "The ministry of finance has clarified that income tax relief of seven years will be available only on commercial production of 'crude oil'. In the light of the above clarification, IT-related provisions in the notice inviting offer (NIO) and petroleum tax guide issued by this ministry for the Nelp-VII bidding round may be read accordingly. The ministry has clarified that all the potential bidders may submit their bids under Nelp-VII, keeping the above clarification in mind."

Under the Nelp and coal bed methane policy, the ministry had been assuring potential bidders of income tax rebate for a seven year period from the beginning of commercial production.

The controversy over taxation issue under Nelp regime started after the Finance Bill 2008-09 proposed to include a new definition of mineral oil in the section 80-IB(9). Accordingly, the Budget memorandum said, "the term 'mineral oil' does not include petroleum and natural gas." The move would have a direct bearing on explorers like RIL, Niko and ONGC who have made gas discoveries in KG and Mahanadi basins.

Later finance ministry withdrew the definition of 'mineral oil' for the purpose of section 80-IB(9) stating that the proposed change in the bill was aimed at clearing the ambiguity as different tax tribunals had taken varied positions on the issue.

But situation didn't change even after this. The current provision provides for tax holiday only to exploration of crude oil and not of natural gas.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - Our Portfolio

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