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) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
Latest Expert Exchange
« Direct Tax »
 Here's a list of things to remember while filing income tax returns this year
 How to fill salary details in ITR1 for FY 2017-18
 Filing income tax returns? You need to disclose these assets to the taxman
 Here's why you should not delay filing your income tax returns
 Six changes in ITR 1 form that you must know ITR 2018-19
 Here are top 5 ways to save money, and you won’t even feel the pinch
 Why checking Form 26AS is necessary Income tax return (ITR) filing
 Central Board of Direct Taxes signs three more unilateral Advance Pricing Agreements with taxpayers
 5 different ways to e-verify Income Tax Return
 CBDT warns Income Tax Department (ITD) over "high-pitched" assessments against taxpayers
 A step by step guide on how to pay due income tax ITR 2018-19

Rupee payment for Iranian crude oil exempted from tax
June, 19th 2012

The government has exempted refiners from paying withholding tax on the purchase of crude oil from Iran. This would reduce costs for Indian refiners, while facilitating payments to Iran in rupees.

The finance ministry issued a notification under the Income tax Act to exempt in the national interest the National Iranian Oil Company from paying taxes of up to 40 per cent. Indian refiners were required to withhold the tax while making payments to the Iranian company. This would raise costs of importing crude oil from Iran.

The Central Board of Direct Taxes (CBDT) said the exemption would be provided as long as the foreign company did not engage in any activity in India, other than the receipt of income under the agreement between the Indian government and the Central Bank of Iran in January.

This notification shall be deemed to have come into effect from the 1st day of April 2012, and shall, accordingly, apply in relation to the income of the assessment year 2012-13 and subsequent years, it added.

In December 2010, the Reserve Bank of India had scrapped a long-standing mechanism for payments to Iran. The issue of payment to Iran was resolved through UCO Banks rupee payment mechanism earlier this year.

India would pay 45 per cent of the value of its oil exports from Iran in rupees, while the rest would continue to be paid in euros through a bank in Turkey. India is set to import 15.5 million tonnes of crude oil from Iran this financial year, against 17.44 million tonnes in 2011-13.

In Budget 2012-13, Finance Minister Pranab Mukhejree had announced exemption of taxes on payments to Iran.

Sanctions on Iran by the US had disrupted Irans trade with many countries, including India, the third-largest importer of oil from Iran.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2018 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Content Management System development CMS development Content Management Solutions CMS Solutions Content Management Services CMS Services CMS Software

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