Monday, March 10, 2008

Drilling at an oil field may yield crude oil, natural gas or a combination of both.

Oil & gas cos mystified by ‘mineral oil’

Oil and gas companies have been bamboosled by an observation in the Memorandum and the Notes on Clauses accompanying the Finance Bill, 2008, says Mr Pritin Kumar, Senior Manager, Deloitte Haskins and Sells, Mumbai. And, at the core of their problem is ‘mineral oil.’

Oil and gas companies engaged in exploration and production activities are currently entitled to claim 100 per cent tax holiday for a period of seven years under Section 80-IB of the Income-tax Act, 1961; this tax holiday is the subject matter of the controversy, elaborates Mr Pritin.

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