Fifth Schedule – Petroleum and mineral deposits
Ring-fences exploration and production of petroleum (and mineral deposits) as a separate undertaking with its own rules for losses, development costs and depletion.
Who it applies to
Petroleum exploration and production companies, and mineral concession holders
Structure and contents
| Part / area | What it covers |
|---|---|
| Part I | Exploration and production of petroleum: separate business; dry-hole and surrendered-area costs; pre-production expenditure allowed up to 10% a year onshore or 25% offshore; depletion; tax rate under the concession agreement |
| Part II | Exploration and extraction of mineral deposits (other than petroleum) |
| Super tax | 10% above Rs 150 million for income under Part I (s.4C) |
How it works in practice
Applies only under a petroleum concession or agreement with the Federal Government. Losses can be carried forward for up to 6 or 10 years, depending on the agreement.