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: empanelment :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: TAX RATES - GOODS TAXABLE @ 4% :: ACCOUNTING STANDARDS :: list of goods taxed at 4% :: due date for vat payment :: VAT RATES :: VAT Audit :: articles on VAT and GST in India :: Central Excise rule to resale the machines to a new company :: cpt :: ARTICLES ON INPUT TAX CREDIT IN VAT :: form 3cd :: TDS :: ACCOUNTING STANDARD
News Headlines »
 CBDT issues second round of Certificates of Appreciation to tax payers for their contribution towards Nation building
 FinMin looks at cut in corporation tax
 Draft Rules for prescribing the method of valuation of fair market value in respect of the trust or the institution-Chapter XII-EB of the Income-tax Act, 1961- reg.
 India is moving towards a flawed GST
 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

Tax sops for refiners to stay
May, 02nd 2008

OIL companies building refineries can now heave a sigh of relief. The government has decided to extend the deadline for seven-year tax holiday to March 31, 2012. The extension under Section 80 IB (9) is through an amendment in the Finance Bill 2008-09. The move is expected to help companies like IOC, BPCL and the Mittal-HPCL combine who are promoting these refineries.

Finance minister P Chidambaram had introduced a sunset clause in the Finance Bill 2008-09 under which tax holiday enjoyed by refiners were to end on March 31, 2009. This had put upcoming refineries in a quandary as removal of tax sops would reduce cost-competitiveness. Major players like L N Mittal, who has a JV with HPCL for a 9 million tonne refinery, had taken up the issue with the oil ministry. BPCL and IOC, which are developing the Bina and Paradip refineries, had also made representations to the government.

With a view to ensuring that the benefit to these refineries is not denied on account of their inability to adhere to this deadline, it is proposed to amend the proposal to provide that such refineries would be eligible to avail of the benefit if they begin refining not later than the March 31, 2012, Mr Chidambaram said.

He, however, left the E&P companies high and dry by not providing a clear definition of mineral oil. The Bill excluded natural gas for the purpose of tax holiday. Section 80 IB(9) of the Income-Tax Act allows 100% exemption in respect of an undertaking which begins commercial production or refining of mineral oil for seven consecutive assessment years.

The scope of this Section is under adjudication since Assessment Year 2001-02 before different tax authorities. In my view, we should allow the disputed issues to be resolved in the normal course by the tribunals and courts, Mr Chidambaram said.

PwC associate director Deepak Mahurkar said: FMs statement has undone some damages. I wish that FM would have resolved the issue rather keeping it open and uncertain.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - We Bring IT. Offshore software outsourcing company. We use Global Delivery Model (GDM) and believe in Follow The Sun principle

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