Article | - Feb 20, 2013 | 19:16 PM
Budget 2013-14: GST benefit may turn petroleum sector profitable
Deepak Mahurkar - Leader Oil & Gas, PwC India .
- All petroleum sector transactions be included to become eligible for classical GST benefit
- Natural gas and coal bed methane are proposed to be included in the 'mineral oil' category, in order to qualify for the tax holiday period
- Power generators seldom import LNG themselves, hence custom duty of 0% be allowed for power sector without restriction on who imports.
- Clear guidelines on CST/sales tax are requested in case of gas swapping to avoid double taxation.
- Goods required to build natural gas pipelines be allowed benefit under section 8(I)(b) within section 8(3) of CST act. (i.e. against form C, CST of 2% is applicable)
- Tax exemption sunset for refinery under 80 (IB) (9) be extended to March 2015 instead of March 2012.
- Heads of post well head costs be clarified for computation of well head price as base for royalty on gas
- North East Industrial and Investment Promotion Policy be made applicable to the E&P industry