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Budget 2013-14: GST benefit may turn petroleum sector profitable

Feb 20 2013, 21:16   |   By Moneycontrol.com

Deepak Mahurkar
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

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  •  Budget Messenger |   Feb 20 2013,07:16