Dec 04:
The days of pre-budget memorandums are upon us. The following recommendations are being forwarded 8To avoid uncertainty, the government should clarify that for the eligibility to avail tax holiday under Section 80-IB of the Act, the definition of ‘mineral oil’ would include natural gas retrospectively irrespective of NELP round and that the benefit should also be available to Coal Bed Methane (”CBM”). 8The scope of an "undertaking" for the purposes of a tax holiday should be redefined for the E&P industry 8The sunset clause under Section 80-IB(9) should also be redefined 8Definition of ‘Infrastructure Facility’ should include exploration and refining activities 8Introduction of Safe Harbour Rules for LNG imports 8Extension of Deduction under Section 35AD be extended to City Gas Distribution entities 8Extension of Section 42 also be expanded to investment in Foreign E&P blocks 8Exemption from MAT be given 8Remove ceiling on profits for Site Restoration Fund (SRF) contribution 8Allow setting off of losses of Specified Business from profits of other businesses 8100% deduction of revenue expenditure should be allowed in the year of incurrence of the expenditure for mineral exploration and production 8No requirement to pay any customs duty for LPG used for non-domestic purposes be done away with as long as there is sufficient indigenous product available at the given time for such use on which appropriate excise duty is paid. 8Zero customs duty for new refineries/refinery expansions and other imports 8CENVAT Credit be allowed on OIDB Cess on Crude 8Exemption from customs duty for supply of goods under International Competitive Bidding contracts under certain conditions 8Exemption of service tax on “Royalty” and “Profit Petroleum” for E&P companies Click on Reports for more