sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
Latest Expert Exchange
Direct Tax »
 Direct tax collection exceeds target in FY18
 Taking the 1st five steps to saving taxes Income Tax
 TDS on interest income: Want to avoid? Here’s how you can do this
 CBDT to modify advance ruling forms for transparency in cross-border deals
 New ITR forms for 2018-19 notified by CBDT
 Income Tax Return form: There are many changes you need to know
 Procedure For Registration And Submission Of Statement Of Financial Transactions (Sft) As Per Section 285ba Of Income-Tax Act, 1961 Read With Rule 114e Of Income-Tax Rules, 1962
 Income tax return forms for FY 2017-18 released
 10 benefits of filing ITR even if you are below taxable bracket
 How to file Income Tax Returns online in five simple steps
 Income tax returns (ITR) deadline over; how belated returns filing will impact you

Tax department changes rule for accommodating deductions for deferred spectrum payment
October, 08th 2016

In view of the telecom spectrum auctions that concluded on Thursday, the income tax department has suitably amended the deductions provision to accommodate deferred payments allowed to acquire airwaves.

It has allowed telecom companies to claim deductions for expenditure made in instalments.

The current rule provides that payment actually made would be taken for consideration for allowing deductions, which is given in equal instalment a year. The changed rule would accommodate deferred instalments as well, and allow deductions spread over the useful life of spectrum.

Had the change not been made and if the payments were to be made over say, three years, it would cause difficulties for taxpayers in the claiming the expenditure over the useful life of the spectrum.

The government allows operators to pay spectrum fee in instalments. In the just concluded auction telecom operators are not required to pay the full amount upfront. They have to pay only 50 per cent of the total amount of spectrum sold in bands of over 1GHz and 25 per cent for airwaves under that.

“It is interesting to note that the government has resorted to amending the Income-Tax Rules to provide for a wider definition of a phrase which is already specifically defined in the Act. Given the practical issues involved, it was probably unavoidable. The question still remains whether the law should have been drafted better, considering all practical issues involved at the outset,” said Rahul Jain, partner, Nangia and Co.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2018 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - Careers

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions