GAIL, CBDT enter advance pricing agreement for LNG sourced from US

10 Feb 2023 , 03:07 PM

GAIL (India) Ltd, a state-owned company, has signed an advance pricing agreement with the Central Board of Direct Taxes (CBDT) to determine the transfer pricing margin payable on long-term LNG sourced from the United States. The agreement was signed by CBDT’s Rasmi Ranjan Das and GAIL’s R K Jain, the company said in a statement.

GAIL and CBDT have reached a pioneering advanced pricing agreement (APA), determining the transfer pricing margin that will be due on their five-year long-term LNG sourcing contract from the USA.

The gas utility company has contracts with US suppliers to purchase 5.8 million tonnes of liquefied natural gas per year (LNG).

GAIL makes history as India’s initial state-owned enterprise in the oil and gas industry to embark on such a pioneering advanced pricing agreement.

At around 3.03 PM, GAIL India was trading at Rs95.75, down by 0.10% against the previous close of Rs95.85 on NSE. So far, the counter touched an intraday high and low of Rs96.25 and Rs94.85 respectively.

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