Latest Expert Exchange Queries
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) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
 
 
 
 
Popular Search: cpt :: ACCOUNTING STANDARD :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: empanelment :: list of goods taxed at 4% :: form 3cd :: due date for vat payment :: Central Excise rule to resale the machines to a new company :: articles on VAT and GST in India :: ARTICLES ON INPUT TAX CREDIT IN VAT :: VAT Audit :: ACCOUNTING STANDARDS :: TDS :: VAT RATES :: TAX RATES - GOODS TAXABLE @ 4%
 
 
« News Headlines »
 Securities excluded from GST ambit in revised Bill
 GST dilemma: Hope fades for new tax regime
 5nance.com launches tax investment platform
 Is government tapping your phone?
 Income tax department to use analytics to look for discrepancies in bank accounts
 GST Council fails to break deadlock over indirect tax regime, next meet on Dec 11 and 12 to hammer out differences
 Invoking Writ Jurisdiction For Income Tax Matters
 How to file income-tax returns online
 How Income Tax Returns Are Scrutinised
 All About New Income Disclosure Scheme to make Demonetisation successful
 Your deposit may draw income tax notice

Wrong Number: Taxmen on trail of telcos to find missing revenues
November, 05th 2007
The telecom sectors growth story has not translated into increased tax revenues for the government. Service tax collections have declined 45% to Rs 1,190.61 crore in the first half of the fiscal year, even as service providers added 44 million new users during the period. As a result, the sector is under the scanner of the tax department.

The overall service tax collections (all sectors combined) grew by about 35% during the period under review. However, tax officials are concerned as collections from the financial services sector and the telecom sector form the major chunk of the service tax kitty, and a massive decline in collections from the telecom sector could have repercussions on overall service tax collections as well.

All telcos pay a little over 12% of their aggregate gross revenues (AGR) as service tax. The subscribers base of all companies combined has increased by about 24% during this period from a total of about 166 million cellular users at the end of March to about 210 million at the end of September. The tax department is analysing why the growth in the sector is not reflected in tax collections. The Director General of Service Tax has asked field units to undertake special audits of the sector.

Although the telcos have been adding about 7 million users every month, AGR reported by them has been coming down. While AGR of all operators combined for the second quarter of this fiscal is not available, the figure for the first quarter was Rs 22,945 crore. Total AGR was about Rs 23,196 crore in the last quarter of the previous fiscal year.

Sources said increased Cenvat credit by telecom companies on account of large capital expenditure may have contributed to the decline. The tax department is likely to examine this in detail. Cenvat credit allows companies to take credit for the duty paid on inputs, which means it can offset its tax liability using the credit. The tax department is likely to check if Cenvat claims by these companies were actually made for permitted capital goods. The department is also likely to scrutinise pre-paid card schemes.

The capital expenditure by the telecom companies are increasing and stands at about Rs 70,000 crore for this fiscal. Bharti Airtel and Reliance Communications have announced capex of Rs 15,000 crore each, while BSNL and Vodafone are estimated to spend over Rs 10,000 crore, and Idea Cellular and Tata Teleservices about Rs 6,000 crore each to expand their networks during this fiscal.
 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
System Testing Solution Manual Software Testing Solutions Automation Software Testing Solutions System Workflow Testing System Manual Testing

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