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: ACCOUNTING STANDARDS :: TDS :: cpt :: ACCOUNTING STANDARD :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: articles on VAT and GST in India :: TAX RATES - GOODS TAXABLE @ 4% :: VAT Audit :: list of goods taxed at 4% :: Central Excise rule to resale the machines to a new company :: form 3cd :: ARTICLES ON INPUT TAX CREDIT IN VAT :: VAT RATES :: due date for vat payment :: empanelment
VAT (Value Added Tax) »
 15% rise in collectionof VAT for Oct-Nov
 China to simplify tax scheme after switch to VAT
 Cabinet clears key proposals on VAT, regularisation of jobs
 Cases of VAT overcharging flood consumer forum
 State seeks relief from Centre
 Flat rate VAT changes for small businesses explained
 Cenvat Credit Of Additional Duties Of Customs [Cvd] On Imported Coal
 Excise Dept puts VAT refund on fast track
 Consumer fora receive 18 VAT plaints
 Appointment of Assistant VATO - F.3(14)/Fin(Rev-I)2012-13/DSVI/334
 Bio-diesel body seeks VAT relaxation

Centre seeking VAT exemption on crude oil stored in Vizag cavern puzzles State
May, 11th 2015

While Andhra Pradesh is awaiting incentives and tax concessions from the Centre as part of the promised special category status, strangely it has got a proposal from the Centre seeking tax exemption on crude oil stored in underground cavern at Visakhapatnam.

The proposal seeking VAT exemption on crude oil was also sent to Tamil Nadu and Karnataka besides Andhra Pradesh. The Union government is setting up three strategic crude oil storages in the underground rock caverns at Mangalore in Karnataka, Padur in Tamil Nadu and Visakhapatnam in Andhra Pradesh.

The underground crude oil storages would serve as energy cushion during emergency situations like wars when crude supplies could be disrupted. The Centre has recently decided to utilise part of crude stored in Visakhapatnam underground facility by supplying it to HPCL for refining purposes and production of petroleum products and earn some returns on the investment on storage facilities.

But as transporting crude for refining purpose would attract VAT in the States where it is stored, Centre wrote to the three States seeking exemption of five per cent VAT imposed on the crude oil.

Being an NDA ally, Telugu Desam government is in a dilemma whether or not to concede the Centre’s proposal given its tight financial situation. Chief Minister N. Chandrababu Naidu recently called for a meeting with the Finance and Revenue Departments to discuss the proposal.

Government sources, however, said the Tamil Nadu almost turned down the Centre’s proposal and the Karnataka government was also apparently not in favour of extending VAT exemption. Andhra Pradesh officials said the State could lose minimum Rs.300 crore if it cleared the VAT exemption on crude. They suggested that the State should wait for the official response of the neighbouring States before taking a decision.

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

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