INCOME TAX SUNSET CLAUSE EXTENDED FOR REFINERIES

In the Budget 2008-09, the finance ministry had proposed to withdraw the tax holiday for all refineries that begin operations after April, 2009.The finance ministry ruled out introduction of Advance Pricing Agreement (APA) programme for deciding tax liability of companies. An APA
is a binding contract between a taxpayer and the tax authority under which the two parties agree on the transfer pricing policy for some transactions of the taxpayers over a period of time.