Tax relief for crude oil purchase from Iran to be notified soon

CHENNAI: The government today assured exporters that tax exemption granted for crude oil purchases from Iran for their captive use would be notified in a 'day or so'.

"...After ascertaining from CBDT (Central Board of Direct Taxes) the necessary notification will be issued in a day or so," Federation of Indian Export Organisations (FIEO) President M Rafeeque Ahmed in a statement here.

According to Ahmed, the flow of funds have been affected due to delay in the issuance of the notification.

Ahmed said he raised the issue with Director General of Foreign Trade (DGFT) Anup Pujari, who assured him that the necessary notification will be issued soon.

In his budget speech, Finance Minister Pranab Mukherjee announced exemption of the payments made for crude oil purchased from the Persian Gulf nation, from any local tax as it would serve in full fledged implementation of the rupee payment mechanism for taking up business with that country.