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Indirect taxes in the context of Ultra Mega &stock here Insert picture from Mega Power Projects
Conference on EPC contracts Tax and Legal Imperatives 18 - 19 May 2007 | Hotel Imperial | Janpath | New Delhi | India
POLICY BACKGROUND
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Policy background
1995
Policy for Mega Power Projects (MPP) formulated by the Ministry of Power Policy provided that interstate power projects exceeding capacity of 1000 MW would qualify as MPPs No fiscal incentives contemplated
1999
Fiscal incentives notified by Department of Revenue, Ministry of Finance Customs notification provided BCD and CVD exemption for goods required for setting-up of specified interstate MPP of a capacity of 1500 MW or more (in case of thermal power plant) or 500 MW or more (in case of hydel power projects)
Indirect taxes in the context of Ultra Mega & Mega Power Projects
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Indirect taxes in the context of Ultra Mega & Mega Power Projects
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Indirect taxes in the context of Ultra Mega & Mega Power Projects
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Benefits Onshore supplies All goods supplied against International Competitive Bidding to be exempt from Excise duty, provided that the goods are exempted from BCD and ACD Deemed Export Benefits (excise concessions, drawback & advance authorization) to Main as well as Subcontractor Issues Deemed Export benefit
Refund of terminal excise duty (non ICB projects) 700 MW or more in the state of Jammu & Kashmir Non ICB? Would the manufacturer lose its credit?
Indirect taxes in the context of Ultra Mega & Mega Power Projects
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Benefits offshore supplies (Project benefits) All goods required for setting up a Mega Power Project to be eligible for import at NIL BCD and CVD. Exemption available to:
An interstate thermal power plant of 700 MW or more in the state of Jammu & Kashmir or in any of the 7 north eastern states For all other states, exemption available for a 1000 MW interstate thermal power plant An interstate hydel power plant of 350 MW or more in the state of Jammu & Kashmir or in any of the 7 north eastern states For all other states, exemption available for a 500 MW interstate hydel power plant
Indirect taxes in the context of Ultra Mega & Mega Power Projects
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Benefits offshore supplies (Project benefits) Above exemption subject to the condition that:
Joint Secretary or higher ranked officer in the ministry of Power to certify that : The power purchasing state has set up a Regulatory Commission to fix tariffs; The power purchasing state has undertaken to privatize distribution in all the cities which have a population of more than 1 million, within a fixed period In the case of imports by a PSU, the details of the imported goods to be certified by the Chairman and the Managing Director; and In case of a private sector project, the details of the imported goods to be certified by the Chief Executive Officer of the project
Indirect taxes in the context of Ultra Mega & Mega Power Projects
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Customs
Service tax
Who must be the importer? Does it extend to construction equipment also? Integrated Mines would they be eligible Dabhol experience Does it extend to Transmission facility
Stand alone duty exemptions for Coal mining projects under Project Imports & Transmission facility
Indirect taxes in the context of Ultra Mega & Mega Power Projects
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Customs
Service tax
Indirect taxes in the context of Ultra Mega & Mega Power Projects
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Customs
Service tax
Indirect taxes in the context of Ultra Mega & Mega Power Projects
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Challenge Us
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