The Indian Oil Corporation (IOC) has informed the Nepal Oil Corporation (NOC), that it would settle the double taxation issue by the end of March.

According to reports, IOC needs to refund Rs 1.12 billion to NOC as per the agreement on avoidance of double taxation between two parties that was signed three years ago.

As per the agreement, the IOC has to refund the tax imposed on import of crude oil at Indian customs.

Report quoted sources at the NOC as saying that the IOC would adjust the sum with the past dues that NOC owes to the IOC. However the NOC would still have about Rs 3 billion to pay to the IOC as past dues even after adjusting the sum.

The NOC has started consultation with the Ministry for Industry, Commerce and Supply and Finance Ministry for the fund after it failed to get positive response from the leading commercial banks in the country in response to call for a short-term loan of Rs two billion.

The IOC has asked the NOC to clear all outstanding dues within March, citing that it needs to settle/close accounts before the end of the Indian fiscal year, which ends in March.