As per the deal, Indian Oil will immediately remit to the state the VAT collected from consumers since 2015-16. Photo: BloombergNew Delhi: State-owned Indian Oil Corp. Ltd and the Odisha government have amicably settled a tax dispute around the company’s 15 million tonne Paradip refinery, which had threatened to rock the refiner’s future investments in the state. The earlier deal agreed at the time of project implementation was that the state will grant a deferment of VAT payment for 11 years. As per the deal, Indian Oil will immediately remit to the state the VAT collected from consumers since 2015-16. Odisha had moved last December to withdraw the promised VAT deferment citing macroeconomic changes (relatively low oil price), which it claimed improved the project’s viability even without the tax break.

Source: Mint August 19, 2017 13:30 UTC