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Tax rulings that have implications for oil & gas sector
Aug 21:
Some recent oil & gas sector tax ruling have widespread implications
8One such case, the court held that the authorities did have the right to separate Technip's contract for offshore construction work into mobilization and demobilization and installation services as the company executed the job on a composite contract. This has implications for other service providers
8Then again, it was clarified that GST will be payable by the refinery only on the net quantity of petroleum gases retained by the recipient manufacturer for the manufacture of petrochemical and chemical products. Though, the refinery would be liable to pay GST on such returned quantity of petroleum gases, when the same is supplied by it to any other person. It was reiterated that this clarification would be applicable mutatis mutandis on other cases involving supply of goods, where feed stock is retained by the recipient and remaining residual material is returned back to the supplier. The net billing is done on the amount retained by the recipient.
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8One such case, the court held that the authorities did have the right to separate Technip's contract for offshore construction work into mobilization and demobilization and installation services as the company executed the job on a composite contract. This has implications for other service providers
8Then again, it was clarified that GST will be payable by the refinery only on the net quantity of petroleum gases retained by the recipient manufacturer for the manufacture of petrochemical and chemical products. Though, the refinery would be liable to pay GST on such returned quantity of petroleum gases, when the same is supplied by it to any other person. It was reiterated that this clarification would be applicable mutatis mutandis on other cases involving supply of goods, where feed stock is retained by the recipient and remaining residual material is returned back to the supplier. The net billing is done on the amount retained by the recipient.
Click on Reports for more
