The government has decided to charge advance tax on sale of petroleum products to a petrol pump operator or distributor at the rate of 0.5 percent for filers and one percent for non filers on ex-depot sale price from July 1, 2018. A tax expert said that the Finance Bill 2018 proposes to charge advance tax on sale of petroleum products to a petrol pump operator or distributor, at 0.5 percent (1 percent for non filers) on ex-depot sale price. The tax so deducted shall be final tax, tax expert added.
Under section 236HA (Tax on sale of certain petroleum products), every person selling petroleum products to a petrol pump operator or distributor, where such operator or distributor is not allowed a commission or discount, shall collect advance tax on ex-depot sale price of such products at the rate specified in Division XVA of Part IV of the First schedule.
(2) The tax deductible under sub-section (1) shall be a final tax on the income arising from the sale of petroleum products to which sub-section (1) applies." it added.
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