Government has reduced VAT on Oil tankers from 14.5% to 5% in November 2011. After this, in an agreement with State government officials, Oil companies have agreed to pay 5% VAT on tankers transporting diesel, petrol, and LPG cylinders. But Oil companies did not mention any VAT clause in the tender book. This made conflicts between Oil companies, AP petroleum dealers and Tank Truck Operators Association.
According to general secretary of the Association, they will help in transporting Oil from Oil depots to respective destinations but they won’t pay any VAT on Oil and gas cylinders transportation. He demanded Oil companies to submit/give written document saying that they pay 5% VAT, on or before 20th February 2013. If they fail or betray, AP Petroleum Dealers and Association of Tank Truck Operators may stop transporting petroleum and LPG gas cylinders from 21st Feb 2013. It is also demanded that, Oil companies should clear VAT dues from 2nd November 2011.
Source: New Indian Express