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: VAT RATES :: form 3cd :: ACCOUNTING STANDARDS :: due date for vat payment :: VAT Audit :: list of goods taxed at 4% :: empanelment :: ACCOUNTING STANDARD :: articles on VAT and GST in India :: TAX RATES - GOODS TAXABLE @ 4% :: Central Excise rule to resale the machines to a new company :: cpt :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: TDS :: ARTICLES ON INPUT TAX CREDIT IN VAT
 
 
General »
 Simplified one page Income Tax Return Form: Changes to keep in mind before filing tax return for AY2017-18
  No proposal to replace Income Tax with Banking Cash Transaction Tax
 GST coming July 1 despite calls for delay: Revenue Secretary Hasmukh Adhia
 Centre introduces provision of taxation on NPS in Income Tax Act
 Income Tax Department Clarifies On Cash Withdrawal From Banks, Post Offices
 The Goods And Services Tax (Compensation To States) Bill, 2017
  Goods and Service Tax (GST) and Real Estate Sector
 New Income Tax Rules On Home Loan Come Into Effect
 Here's how late filers can save on stress and taxes
 Clarifications on the Taxation and Investment Regime for Pradhan Mantri Garib ?Kalyan Yojana, 2016
 Companies should invest in upgradation of tax technology

Additional cess, service tax will impact ONGC by Rs 5-k cr
March, 19th 2012

Budgetary measures will impact Oil and Natural Gas Corp' ( ONGC ) by Rs 5,000 crore on PBT level (profit before tax), said Sudhir Vasudeva, chairman and managing director, ONGC in an interview to CNBC-TV18.
On Friday, while announcing the Union Budget 2012-13, Finance Minister Pranab Mukherji highlighted that the cess on crude would go up to Rs 4,500/bbl from Rs 2500. Going by last year's estimates, the company produced 27 million metric tonnes of crude and incremental cess will dent topline by Rs 4,600 and higher service tax would add another Rs 400 crore outgo.
Vasudeva also pointed that the firm needs atleast USD 55-USD 60/bbl in realization to support its capex plans for this year. However, he also remarked that Budget is not the platform for announcing fuel price hike as demanded by oil retailers. But he does hope for a price hike in petroleum products soon.
Below is an edited transcript of his interview with Udayan Mukherjee and Mitali Mukherjee. Also watch the accompanying video.
Q: What would you do to your net realizations, the cess now and what could be the additional payout in rupee terms?
A: In terms of rupee payout I think we will be burdened by another 4,600 or 4,700 crore. Along with that the excise duty and service duty increase, total impact on PBT would be of the order of about 5,000 crore.
Q: Could you just quantify as well in terms of the impact per barrel for ONGC?
A: It is Rs 2,000 increase per barrel. So it comes to about USD 5.5-6 per barrel.
Q: Before we talk a little bit about the impact from Budget, I want an update as well on what is happening with ONGC's bid for Gujarat Gas. It is a very high profile bid and whether ONGC has been able to take any lead position?
A: I would rather not comment on that. We keep trying on various things. We keep trying acquisitions etc, it is premature to talk about any such thing.
Q: Given the kind of subsidy sharing that you are planning or that you are expecting this year in FY13 and the cess what kind of average realizations per barrel do you expect to have this year?

A: Your guess is as good as mine. All we need is remunerated prices. My predecessors along with me absolutely have no issue on paying this in subsidy on this nominated field because the government is well within their rights. They would take this since we don't pay any profit on petroleum etc but at the same time since we support all our outlays based on our internal resources, we need to get remunerative prices. So something like between USD 55 and USD 60 is a bare minimum which we need to support our approvals.

Q: There was a large offer of sale of ONGC stock just a few days back, within a fortnight of that to make an announcement which is materially detrimental to your performance this year. Do you think it is in the spirit of corporate governance?

A: This was not only for ONGC. This is for the hydrocarbon sector.

Q: Any indications from either the oil ministry or the finance ministry that they will engage in some dialogue with ONGC about the subsidy burden sharing issue? This time as well the kind of money that has been allocated for fuel subsidies seems short at least of what happened last year. Do you fear ONGC might again have to bear a greater part of the burden and that that one-third equation?

A: I would like to take a positive interpretation of this. If the honourable Finance Minister has allocated something like 43,500 crore against 68,000 crore, it is only an indication and also the statement of the honourable Prime Minister that we have to bite the bullet and subsidy burdens have to reduce. That means part of this burden would be passed on to consumers and we will not be unduly burdened.

Q: I am sure you would also be privy to any recommendations from the oil marketing companies with regards to price increases, any headway on that? Any hope that there maybe movement even on a decontrolled commodity like petrol or perhaps on LPG and diesel?

A: I cannot comment on that. OMCs have always been asking for increase on petrol price and also they are huge under recoveries both on diesel and LPG as far as liquid fuels are concerned.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Enterprise Resource Planning Solutions ERP Solutions Enterprise Resource Planning Software Solutions ERP Software Solutions Supply Chain Management Solutions SCM Solutions Supply Chain Management Software Solutions SCM Software Solutions Enterprise Resource Planning Solutions India ERP Solutions India Enterprise Resource Planning Software Solutions India ERP Software Solutions India Supply Chain Management Solutions India SCM Solutions India Supply Chain Management Software Solutions India SCM Software Solutions India

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