Latest Expert Exchange Queries

GST Demo Service software link:
Username: demouser Password: demopass
Get your inventory and invoicing software GST Ready from Binarysoft
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
Popular Search: articles on VAT and GST in India :: due date for vat payment :: ACCOUNTING STANDARD :: VAT Audit :: cpt :: Central Excise rule to resale the machines to a new company :: ACCOUNTING STANDARDS :: TDS :: list of goods taxed at 4% :: empanelment :: form 3cd :: VAT RATES :: ARTICLES ON INPUT TAX CREDIT IN VAT :: TAX RATES - GOODS TAXABLE @ 4% :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes
News Headlines »
 How to save income tax? Best tips for young earners
 Forgot to verify your income tax return? Here's help
 Notification of Government e-Marketplace (GeM) under section 138 of the Income-tax Act
 Income tax returns can be filed even if you missed deadline
 What is the difference between a tax return and a tax refund?
 Improving tax compliance in India
 How to invest in the new LTCG tax regime
 5 Tips to help you save tax
 Why to file income tax return?
  Income Tax For Individuals – Assessment Year 2019–20
 RBI mentions 5 tax implications on investments and savings

MTNL, BSNL get Rs 2,500 cr tax refund
November, 16th 2006
Following a decision by an inter-government dispute settlement committee a couple of days ago, public sector telecom service providers Mahanagar Telecom Nigam Ltd and Bharat Sanchar Nigam Ltd have got a bonanza in the form of tax refunds of around Rs 2,500 crore. 
The committee upheld the view that the fee paid to the government annually for telecom licences be treated as a deductible expenditure for tax treatment purposes, as is the case with private telecom service providers. 
While the Bombay Stock Exchange and Nasdaq-listed MTNL expects to get a refund of nearly Rs 1,400 crore, an amount that will reflect in its balance sheet for the current financial year, unlisted BSNL expects a refund of around Rs 1,083 crore. 
The conflict dates from 1996-97 onwards and started with the then telecom minister Sukh Ram levying a rural telecom fee on MTNL and Videsh Sanchar Nigam Ltd. 
The companies used to pay a licence fee of Re 1 in those days and the tax authorities said this was a form of connivance between the PSU and its parent, the department of telecommunications. VSNL protested and won relief subsequently. 
Recalling this, RSP Sinha, the then director, finance, VSNL, and the present chairman and managing director, MTNL, said VSNL fought the case as it did not agree with the view of the tax assessing officer. 
When VSNL was divested, the law ministry agreed that licence fee was expenditure and the money was returned to the company, he said. 
However, MTNL did not get a relief at that stage and has been treating it as a contingent liability on the balance sheet ever since. 
Around two months ago, the attorney general gave an opinion that led to the committee of disputes recent decision. 
We are expecting to get about Rs 1,083 crore as refund. We are thankful to the government for accepting our request to consider licence fee as expenditure. This will be good for BSNL, SD Saxena, finance director, BSNL, said. 
Expecting a positive impact on its bottom line, MTNL director, finance, Anita Soni, said: According to our estimate, we will get Rs 1,400 crore as refund as well as Rs 400 crore as interest according to income-tax department rules. We will also be able to save about Rs 100 crore each year. 
The move seems to be a major boon for both operators who are faced with stiff competition from private operators like Bharti Airtel and Reliance Communications. 
MTNL declared a 25.53 per cent dip in net profit to Rs 121.02 crore in the quarter ended September 30, 2006, from Rs 162.53 crore in the corresponding period last year, on the back of stiff competition from private players and its reduced tariff plans. Total income declined 4.65 per cent to Rs 1,376.76 crore for this quarter, from Rs 1,444.05 crore in the comparable quarter last year.
Home | About Us | Terms and Conditions | Contact Us
Copyright 2018 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Software Development Software Programming Software Engineering Custom Software Development Requirement Based Software Development Software Solutions Software Serv

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