Country Report
India upstream fiscal summary
Report summary
All new upstream licences are awarded through the licensing rounds under Revenue Sharing Model (RSM) terms. Within the RSM regime there is no cost recovery. Revenue after royalty is shared between the government and contractor. Revenue sharing is based on high and low revenue points which are set by the government, with the respective revenue shares biddable by the contractor. Royalty is fixed but varies between 5% and 12.5% depending on a fields location. Corporate income tax is payable at the effective rate of 25.63% for domestic companies and at 43.68% for foreign companies. In February 2019, the government introduced policy reforms to incentivise exploration, which included royalty discounts, elimination of government revenue share for frontier basins and introduction of windfall gain revenue sharing, capped government revenue share and gas marketing and pricing freedom. From 1st July 2022, government introduced windfall levy on gross crude oil revenue at INR10200 per tonne.
Table of contents
- Indirect taxes
-
Royalty
- Ring fencing
- Base
- Rate
- Payment schedule
-
RSM production sharing
- Ring fencing
- RSM cost recovery
-
RSM revenue sharing
- Base
- Rate
- Payment schedule
-
RSM windfall revenue sharing (windfall gain)
- Base
- Rate
- Payment schedule
-
Windfall levy (SAED)
- Ring fencing
- Base
- Rate
- Payment schedule
-
Corporate income tax
- Ring fencing
- Base
- Rate
- Payment schedule
- Fiscal treatment of decommissioning
- Product pricing
- Summary of modelled terms
- Recent history of fiscal changes
- Stability provisions
- Split of the barrel and share of profit
- Effective royalty rate and maximum government share
- Progressivity
- Fiscal deterrence
Tables and charts
This report includes 32 images and tables including:
- Indirect taxes
- Assumed terms by location - oil and gas
- Timeline details
- Split of the barrel - oil
- Split of the barrel - gas
- Share of profit - oil
- Share of profit - gas
- Effective royalty rate and minimum state share - onshore, oil
- Effective royalty rate and minimum state share - onshore, gas
- Effective royalty rate and minimum state share- shelf, oil
- Effective royalty rate and minimum state share- shelf, gas
- Effective royalty rate and minimum state share - deepwater, oil
- Effective royalty rate and minimum state share - deepwater, gas
- Maximum government share and maximum state share - onshore, oil
- Maximum government share and maximum state share - onshore, gas
- Maximum government share and maximum state share - shelf, oil
- Maximum government share and maximum state share - shelf, gas
- Maximum government share and maximum state share - deepwater, oil
- Maximum government share and maximum state share - deepwater, gas
- State share versus Pre-Share IRR - oil
- State share versus Pre-Share IRR - gas
- Investor IRR versus Pre-Share IRR - oil
- Investor IRR versus Pre-Share IRR - gas
- Royalty rates - by basin category and location
- Contractor revenue share
- Contractor revenue share
- Windfall revenue share
- Windfall revenue share
- Windfall levy rates
- Windfall levy rate for 2022
- Effective corporate tax rate
What's included
This report contains:
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