Take the pledge to vote

For a better tommorow#AajSawaroApnaKal
  • I agree to receive emails from News18

  • I promise to vote in this year's elections no matter what the odds are.
  • Please check above checkbox.

    SUBMIT

Thank you for
taking the pledge

Vote responsibly as each vote counts
and makes a diffrence

Disclaimer:

Issued in public interest by HDFC Life. HDFC Life Insurance Company Limited (Formerly HDFC Standard Life Insurance Company Limited) (“HDFC Life”). CIN: L65110MH2000PLC128245, IRDAI Reg. No. 101 . The name/letters "HDFC" in the name/logo of the company belongs to Housing Development Finance Corporation Limited ("HDFC Limited") and is used by HDFC Life under an agreement entered into with HDFC Limited. ARN EU/04/19/13618
LIVE TV DownloadNews18 App
News18 English
News18 » Business
2-min read

Telecom Services Cost May Rise by 10% in Absence of Tax Relief

The Tower and Infrastructure Providers Association (TAIPA) has sought an extension of some tax benefits that are granted to some non-telecom infrastructure firms and amendments in Goods and Services Tax.

PTI

Updated:January 9, 2018, 9:17 PM IST
facebookTwitter Pocket whatsapp
Telecom Services Cost May Rise by 10% in Absence of Tax Relief
Image used for representation only.

New Delhi: Telecom body TAIPA expects 50,000 mobile tower installations in coming fiscal with considerable tax implications and in absence of concessions from the government, cost of mobile services may become dearer by 10 percent.

"The passive infrastructure industry is expecting to install around 50,000 towers during the coming fiscal and the taxes paid on each tower is around Rs 1-1.5 lakh. This could result in an increase in the cost of providing the telecom service by approximately 10 percent," TAIPA Director General Tilak Raj Dua said in a letter to Central Board of Excise and Customs Chairperson Vanaja N Sarna.

The Tower and Infrastructure Providers Association (TAIPA) has sought an extension of some tax benefits that are granted to some non-telecom infrastructure firms and amendments in Goods and Services Tax.

The industry body sought inclusion of telecom tower in the definition of plant and machinery for the purpose of input tax credit, extension of deduction allowed under under Section 35AD of the Income Tax Act to telecom infrastructure firms for investment made on procuring equipment manufactured in India, levying of GST on transaction value of scrap such as battery banks, air-conditioners, diesel generators etc.

Telecom infrastructure body, whose members include Bharti Infratel, Indus Towers, ATC. Etc., has asked the government to apply same interest rate as paid on the delay of tax refund by the government and charge by it for delay of tax payment made by the assessee.

Dua said that the mobile tower companies have invested over Rs 2.5 lakh crore to set-up over 4.5 lakh towers in the country and make a direct contribution of more than Rs 5,000 crore annually in corporate income tax and service tax.

"Further, our industry invests more than Rs 10,000 crore annually in equipment manufactured in India like towers, shelters, batteries, air-conditioners, DG sets, power management systems etc," Dua said.

TAIPA has sought Krishi Kalyan Cess (KCC), Education Cess(EC), and Secondary and higher education Cess (SHEC) to be used as any other credit of excise or service tax under the GST regime, as the law provides carry forward of Centvat Credit. In the previous indirect tax regime, EC, SHEC and KKC were covered under the definition of centvat credit, the letter said.

The mobile tower body has sought clarity on rate applicable for debit and credit notes pertaining to invoices raised during the pre-GST period and demanded that the applicable tax rates should be at the same rate at which invoice was raised to avoid undue tax benefit.

Get the best of News18 delivered to your inbox - subscribe to News18 Daybreak. Follow News18.com on Twitter, Instagram, Facebook, Telegram, TikTok and on YouTube, and stay in the know with what's happening in the world around you – in real time.

| Edited by: Tarun Bhardwaj
Read full article
Next Story
Next Story

facebookTwitter Pocket whatsapp
Most Active
Company Price Change %Gain
SBI 321.90 5.20
Bharti Airtel 393.05 8.43
ICICI Bank 499.85 0.24
Reliance 1,470.85 0.55
Yes Bank 68.70 -0.07
Company Price Change %Gain
Cipla 463.10 2.57
SBI 322.00 5.19
Bharti Airtel 393.20 8.42
Eris Life 410.15 -0.19
Yes Bank 68.70 -0.07
Top Gainers
Company Price Change %Gain
Bharti Infratel 227.15 8.87
Bharti Airtel 393.05 8.43
SBI 321.90 5.20
Grasim 755.15 2.89
Cipla 463.25 2.63
Company Price Change %Gain
Bharti Airtel 393.20 8.42
SBI 322.00 5.19
Kotak Mahindra 1,623.00 1.60
Sun Pharma 414.90 1.18
Tata Motors 168.60 0.96
Top Losers
Company Price Change %Gain
IOC 131.70 -3.76
Hero Motocorp 2,543.20 -1.87
BPCL 506.55 -1.57
Maruti Suzuki 7,147.20 -1.38
Vedanta 142.10 -1.32
Company Price Change %Gain
Hero Motocorp 2,542.85 -1.85
Maruti Suzuki 7,147.00 -1.38
ITC 250.65 -1.30
Vedanta 142.10 -1.29
NTPC 117.20 -1.14

Live TV

Countdown To Elections Results
To Assembly Elections 2018 Results