Seeks to exempt Central Government's share of Profit Petroleum from Union Territory Tax
Notification on Exemption of Union Territory Tax for Petroleum Mining (Notification No. 5/2018)
The Government of India, through the Ministry of Finance's Department of Revenue, issued Notification No. 5/2018 on January 25, 2018. This notification, exercising the powers under sub-section (1) of section 8 of the Union Territory Goods and Services Tax Act, 2017, announces a tax exemption. Specifically, it exempts the intra-State supply of services related to the granting of licenses or leases for exploring or mining petroleum crude or natural gas from the Union territory tax. This exemption applies to the portion of the tax that would be levied on the payment made to the Central Government, which is the Central Government's share of profit petroleum as defined in relevant contracts. The exemption is provided in the public interest and based on the recommendations of the Council. The notification is signed by Ruchi Bisht, Under Secretary to the Government of India.
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Government of India
Ministry of Finance
(Department of Revenue)
Notification No. 5/2018- Union Territory Tax (Rate)
New Delhi, the 25th January, 2018
G.S.R (E).- In exercise of the powers conferred by sub-section (1) of section 8 of the Union Territory Goods and Services Tax Act, 2017 (14 of 2017), the Central Government, on being satisfied that it is necessary in the public interest so to do, on the recommendations of the Council, hereby exempts the intra-State supply of services by way of grant of license or lease to explore or mine petroleum crude or natural gas or both, from so much of the Union territory tax as is leviable on the consideration paid to the Central Government in the form of Central Government’s share of profit petroleum as defined in the contract entered into by the Central Government in this behalf.