PwC India has suggested the government to give some tax benefits to the oil and gas sector.
Deepak Mahurkar, Leader Oil & Gas, PwC India recommended the government to make all petroleum sector transactions eligible for classical GST benefit.
He proposed the government to include natural gas and coal bed methane in the ‘mineral oil’ category, in order to qualify for the tax holiday period.
He suggested the government to waive customs duty on import of LNG by power generators. He added that clear guidelines on CST or sales tax are requested in case of gas swapping to avoid double taxation.
He recommended the government to give benefits for goods required to build natural gas pipelines under section 8(I)(b) within section 8(3) of CST act. (i.e. against form C, CST of 2% is applicable).
Mahurkat proposed that tax exemption sunset for refinery under 80 (IB) (9) be extended to March 2015 instead of March 2012.
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