The Central Government has notified the following 3 foreign companies and agreements, in order to exempt the income accruing or arising to these Foreign Companies on account of storage of crude oil in a facility in India and sale of crude oil therefrom to any person resident in India.
The three Companies are:
As per Section 10, Clause 48A of the Income Tax Act, 1961, in computing the total income of a previous year of any person, any income accruing or arising to a foreign company on account of storage of crude oil in a facility in India and sale of crude oil therefrom to any person resident in India shall not be included. However, there are two conditions for exempting such income.
They are provided as proviso to Clause 48A. The first condition is that the storage and sale by the foreign company should be based on an agreement or an arrangement entered into by the Central Government or approved by the Central Government. The Second condition is that, the Central Government having regard to the national interest should notify the said foreign company and the agreement or arrangement.
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