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 Audit :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: VAT RATES :: Central Excise rule to resale the machines to a new company :: ACCOUNTING STANDARD :: form 3cd :: due date for vat payment :: empanelment :: articles on VAT and GST in India :: TDS :: cpt :: list of goods taxed at 4% :: ACCOUNTING STANDARDS :: TAX RATES - GOODS TAXABLE @ 4% :: ARTICLES ON INPUT TAX CREDIT IN VAT
Direct Tax »
 Salaried taxpayers to get SMS alerts for TDS deductions
 Salaried tax payers to get SMS alerts on TDS deductions
 Mumbai zone direct tax collection flat in H1 FY17
 CBDT issues final rules for taxing share buy back by companies
 CBDT issues final rules for taxing share-buyback
 The direct tax collections up to September, 2016 are at Rs. 3.27 lakh crore which is 8.95% more than the net collections for the corresponding period last year.
 IDS is tremendous success: CBDT chief Rani Singh Nair
 Submit monthly data of appeals disposed of: CBDT to officers
 Direct tax mop-up jumps 9 per cent in H1, indirect tax up 26 per cent
 Income tax department slams notice on five Mumbai-based exporters over offshore accounts
 Redress TDS mismatch grievance of taxpayers: CBDT

Cess on taxes among options to bail out oil marketing cos
May, 28th 2008

To bail out the public sector oil marketing companies (OMCs) from the estimated under recoveries of Rs 2,25,000 crore for the current fiscal due to continued surge in global crude prices, the Government is considering a combination of measures including an option of a cess or surcharge on income-tax and corporate tax.

At a meeting between the Finance Minister, Mr P Chidambaram, and the Petroleum Minister, Mr Murli Deora, the proposal of a cess on the lines of the education cess was discussed among other relief options, which include issuance of more oil bonds, rationalisation of duties and an increase in auto fuel prices.

However, the Petroleum Ministry officials said the levy idea may not find many takers within the Government. The proposal was not well received by the Finance Minister, sources said.

If the Government considers a one per cent cess on direct taxes estimated at Rs 3,65,000 crore for 2008-09, then the revenue earned through the cess would be close to Rs 3,650 crore.

A cess of three per cent (the rate of the education cess) would mop up close to Rs 10,950 crore. Oil companies have been suggesting a cess on the lines of education cess, which is levied both on direct and indirect taxes, and this would mop up close to Rs 20,000 crore on the estimated tax revenue of over Rs 6,00,000 crore.
Brooks no delay

Talking to newspersons after his meeting with the Finance Minister, Mr Deora said, we dont want to see scarcity of petroleum products, particularly kerosene and LPG. Oil companies are in a precarious state and we need to find solutions urgently.

The three OMCs Indian Oil Corporation, Hindustan Petroleum Corporation, and Bharat Petroleum Corporation are losing Rs 580 crore daily in selling petrol, diesel, LPG and kerosene below the market price.

Later in the day, Mr Deora also met the Prime Minister, Dr Manmohan Singh, and the External Affairs Minister, Mr Pranab Mukherjee.
Suggested price hikes

The Petroleum Ministry is understood to have proposed a hike in petrol price by Rs 10 a litre, diesel by Rs 5/litre and that of LPG by Rs 50/cylinder to bring down the revenue losses suffered by the OMCs.

The proposal to impose a cess follows the Finance Ministrys reluctance to cut duties on crude oil and petroleum products as it would have to forgo revenues.

Mr S Sundereshan, Additional Secretary in Petroleum Ministry, said oil companies cannot wait for another week for the decision. We are hopeful that a decision will be taken soon.

The Petroleum Ministry has been seeking cut in customs duty on crude oil to zero from five per cent and that on petrol and diesel to 2.5 per cent from the current 7.5 per cent.

It is also seeking a cut in excise duty on petrol and diesel by half.

The excise duty on petrol at present is Rs 14.35 a litre and diesel Rs 4.60 a litre. Currently, the revenue loss on petrol is Rs 16.34 a litre and diesel Rs 23.49 a litre.

The Petroleum Ministry sources said while HPCL and BPCL have cash to import crude oil only till July, IOC can buy till September.

The upstream contribution for the fiscal can be limited only to Rs 30,000 crore and marketing companies have a capacity to absorb oil bonds worth Rs 35,000 crore.

Another Rs 15,000 crore can be absorbed by refining-cum-marketing companies. If the customs duty is made nil and excise duty reduced by half, there would still be a gap of Rs 51,000 crore that would need to be met through other measures, sources said.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Desktop Application Development Outsourcing Desktop Application Development Offshore Desk

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