Texas Oil denies ST default on Shiv Vani rig
Mumbai-based Texas Oil and Gas has hit back at accusations that it has not paid Rs1cr ($150,000) in Service Tax owed to the government for a two-well drilling campaign at Sintex block CB-ONN-2009/7.
"We are surprised to see your e-mail alleging non-payment of Service Tax amounting to Rs1cr," Texas wrote on May 27 to Petrowatch.com, responding to our email sent a day earlier. "We have not defaulted on any Service Tax payment dues.
We are a private limited company and have a statutory audit and internal audit to make regular tax compliance (sic)." However, a senior Sintex source insists that a consortium led by Rasson Energy, where Texas was partner, failed to pay all Service Tax due to the government after it deployed Shiv Vani's 1000-hp rig ZJ-40 for the drilling programme. Sintex hired the consortium for a four-well campaign on April 17, 2015 at an EDR (Effective Day Rate) of Rs11 lakhs ($16,000) including mobilisation and demobilisation charges.
"From our side we've paid the consortium in line with the contract," confirms Sintex. "We don't want any controversy because of wrongdoing by our contractors and refuse to work with any company on the wrong side of the law." A senior Rasson source blames Texas.
"There are no problems from Rasson but Texas has breached the contract by not paying its dues," he says. "It is unwilling to pay."
