22399 Investors following IOC. Share this News with them.
0
Like this story, share it with millions of investors on M3
Allahabad High Court orders IOC to pay entry tax on crude
The Allahabad High Court has ruled that India's biggest refiner, Indian Oil Corp., must pay entry tax on the crude it supplies to a plant in Uttar Pradesh, the company told the Bombay Stock Exchange on Wednesday.
The Allahabad High Court has ruled that India's biggest refiner, Indian Oil Corp ., must pay entry tax on the crude it supplies to a plant in Uttar Pradesh, the company told the Bombay Stock Exchange on Wednesday.
IOC said the order could have "financial implications". It did not say when the court gave the verdict.
The state-owned refiner's stocks fell about 6 percent to 271.50 rupees a share, the steepest decline in 14 months.
IOC then appealed against the order in Supreme Court which stayed it on January 17 on the condition that IOC deposit 50 percent of the taxes sought from it and furnish bank guarantees for the balance amount.
IOC said it is examining the matter "legally for further course of action."
"The amount to be furnished is yet to be assessed ... the entry tax is five percent of the crude cost," said P.K. Goyal, head of finance at IOC.
IOC's Mathura refinery in Uttar Pradesh has a processing capacity of 160,000 barrels per day, accounting for about 12 percent of its overall capacity.
