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 :: ACCOUNTING STANDARD :: ARTICLES ON INPUT TAX CREDIT IN VAT :: articles on VAT and GST in India :: VAT RATES :: cpt :: VAT Audit :: due date for vat payment :: TAX RATES - GOODS TAXABLE @ 4% :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: ACCOUNTING STANDARDS :: form 3cd :: list of goods taxed at 4% :: TDS :: Central Excise rule to resale the machines to a new company
General »
 Banks warn share tax hike threatens Paris' post-Brexit appeal
 PMC may decide on property tax rebate for IT firms this week
 I-T Dept is giving out certificates of appreciation. Have you received yours?
 Government works on ironing out benefits refund mechanism for exportersa
  Tax officials are using an IDS provision to question transactions beyond six-year-limit
 Tax-free bonds rally like midcap funds
 Senior citizens do not have to pay advance tax on salary and interest income
 GST: Audit commissioners to get adjudication powers
 Interest on NRE rupee account can be exempt from tax under FEMA
 Impact of GST on Real Estate Sector
 GST regime: Tax payers allowed to take option of third-party interfaces

ONGC refuses to reimburse service tax
August, 15th 2008

Oil explorers like Oil and Natural Gas Corp(ONGC) have refused to reimburse service tax on offshore vessels they hire, giving foreign flag vessel owners an edge over Indian shipowners.    
Shipping Secretary A P V N Sarma has sought intervention of his counterpart in Petroleum Ministry for "suitable directives to E&P operators for reimbursement of service tax."    

"E&P operators like ONGC who have charter hired Offshore Supply Vessels (OSVs) have declined to reimburse the Service Tax on the basis of their own interpretation (of rules)," he wrote to Petroleum Secretary last month.    

The vessel owners are to pay service tax to government irrespective of the position taken by oil firms.    

"Indian OSVs owners are unable to participate in any tender of E&P operators because they have to factor the Service Tax component too in their quote with the result the rate quoted by Indian owners are bound to be on higher side as compared to foreign vessel owners who do not have to pay service tax at all," he wrote.    

Finance Ministry had this year included shipping industry under the ambit of the Service Tax.     
Under the new directive, any services provided for the supply of tangible goods, that includes machinery equipment and appliances for use and does not transfer right of possession and effective control, is liable to service tax. OSVs, as per Finance Ministry, fall under this category.    

E&P (exploration and production) firms like ONGC that hire OSVs, refuse to shell out service tax on use of the vessels.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Web Application Development Web based Software Solution Web Application Deployment Web Application Solutions Web Application Software Development Web Application Deployment Web Application Programming Web Application Design and Development

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