PROFIT BEFORE TAX
Main Business Activities
- Upstream and Integrated Gas
- New Energies
- Trading and Supply
- Other support activities
Shell has been present in India for almost 27 years, mostly in downstream activities through Shell India Markets Private Ltd. In 2008, Shell started its business operations and Projects & Technology activities. In 2019, Hazira Port Private Ltd. and Shell Energy India Private Ltd. (formerly known as Hazira LNG Private Ltd.) became 100% Shell owned with activities in Integrated Gas and Trading and Supply. Shell in India has an interest in companies operating in solar power, electric-vehicle charging and biofuels. Shell is also present in India through a non-Shell-operated venture in Downstream, Shell MRPL Aviation Fuels and Services Ltd. (Shell interest 50%) and Tiki Tar and Shell India Private Ltd. (Shell interest 50%).
In 2019, Shell ended its 25-year production-sharing contract between BG Exploration and Production India Ltd. and the Government of India and sold its 10% shareholding in Mahanagar Gas Limited.
Country Financial Analysis
The statutory corporate income tax rate for domestic entities in India is between 25% and 30% depending on type of business activity, profits and whether exemptions and deductions are claimed. The effective tax rate for foreign entities, for example BG Exploration and Production India Ltd., is 43.68%.
Tax paid during the year relates to profits arising from business activities, including on services rendered through Shell Business Operations and Projects & Technology operations.
Shell claims tax exemption for its Shell Business Operations relating to information technology activities as it is located in a special economic zone.
Our Payments to Governments Report for 2019 also shows that Shell paid around $251.2 million in production entitlements and royalties.