(ET)
Resolving the contentious Paradip refinerytax incentive row between Indian Oil Corp (IOC), the country’s largest fuel retailer and the government of Odisha, IOC today made payment of Rs 2,935 crore towards Value Added Tax (VAT) payment for the period between November 2015 and July 2017, the company said in a statement today.
“With the active support and engagement of the Ministry of Petroleum & Natural Gas, Government of India, in the resolution of the issue of VAT deferment for Indian Oil Corporation’s Paradip Refinery in Odisha, IndianOil has paid Rs. 2,935 crore to the Government of Odisha today towards VAT payment for the period Nov. 2015 to July 2017. The Refinery had commenced commercial operations in November 2015,” IOC said. The company added that the meeting between Oil and Skill Development Minister Dharmendra Pradhan and Chief Minister of Odisha last month was instrumental in resolving the pending issue.
Odisha government, as per the revised tax incentive agreement, agreed upon extending the deferment of VAT on products produced by Paradip Refinery and sold in the state to 15 years from 11 years decided earlier with a cap of Rs 700 crore per year.
