(a) whether the Government are providing customs duty and
income tax exemption to the foreign companies with whom
agreement have been signed for exploration of petroleum
products;
(b) if so, the details thereof;
(c) the total exemption granted to such companies during
the last three years;
(d) the total loss suffered by the Government exchequer on
this account; and
(e) in which way the Government are filling this gap of
customs duty and income tax exemption?
MINISTER OF STATE IN THE MINISTRY OF FINANCE & COMPANY AFFAIRS (SHRI GINGEE. N. RAMACHANDRAN)
(a) Yes, Sir.
(b) The Government is providing customs duty exemption to foreign
companies in respect of raw materials/parts used for manufacture
of goods for the purposes of off-shore oil exploration. Exemption
is also available on specified goods required in connection with
petroleum operations and coal-bed methane operations undertaken
under specified contracts subject to certain conditions. Under
the provisions of the Income Tax Act, expenditure by way of
infructuous or abortive exploration expenses in respect of any
area surrendered prior to the beginning of commercial production
is allowed as a deduction. Foreign companies are also entitled to
tax benefits as per the provisions of bilateral Double Taxation
Avoidance Agreements (DTAAs) between India and various other
countries.
(c) The information is being collected and will be laid on the
Table of the House.
(d) Exemption granted does not amount to revenue loss.
(e) Does not arise.