The recently released new Direct Tax Code which is slated to replace the Income Tax Act, 1961 will have far reaching implications for all companies, including those in the oil & gas sector.
Several provisions have a direct impact on the hydrocarbon sector like levying minimum alternate tax (MAT) on gross assets, withdrawal of MAT credit, changes in tax residency rule of foreign company and introduction of branch profits tax for foreign companies, withdrawal of profit-based and location-based tax holiday, introduction of limitation on usage of old plant and machinery in E&P, general anti-avoidance measures etc.
To enable prepare a representation on behalf of the industry for submission to the Government an interaction was organised by PetroFed with member company & knowledge partner PricewaterhouseCoopers. The discussion was led by PwC Head of Direct Tax Practice and Executive Director, Mr. Rahul Garg on October 1, 2009 at New Delhi.
A detailed presentation was made on the occasion was debated. Industry members were requested to send further inputs for developing a representation to be circulated before submission to Government.
Mr. Rahul Garg, Head of Direct Tax Practice and Executive Director, PwC being greeted by Mr. A. K. Arora, Director General, PetroFed
Seated (R-L): Mr. Rahul Garg, Head of Direct Tax Practice and Executive Director, PwC; Mr. Naresh Kumar, Managing Director, Jindal Drilling; Mr. R. A. Agarwal, Vice President, Jindal Drilling; Mr. V. K. Duggal, CFO (India), Niko Resources and Mr. Sanjay Shah, Sr. Manager (Finance), Niko Resources.
Mr. Rahul Garg making his presentation.
DG, PetroFed, Mr. A. K. Arora (extreme left) and other participants engrossed in the presentation.
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