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: ACCOUNTING STANDARDS :: list of goods taxed at 4% :: VAT Audit :: cpt :: ACCOUNTING STANDARD :: Central Excise rule to resale the machines to a new company :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: TDS :: VAT RATES :: articles on VAT and GST in India :: form 3cd :: due date for vat payment :: TAX RATES - GOODS TAXABLE @ 4% :: empanelment :: ARTICLES ON INPUT TAX CREDIT IN VAT
 
 
« News Headlines »
 Seven things you must do before 31st March
 Income Tax saving investments: Top 5 options available for high-income individuals
 How to use zero tax rule on long term capital gains on stocks
 GST Returns - Furnishing details of inward supplies
 5 ways to maximise you income tax return
 Income-tax (2nd Amendment) Rules, 2017
 Soon, Faster PAN, An App For Filing Tax Returns
 Changes in income tax return filing process
 New Income Tax Rates And Deductions Applicable From April 1, 2017
 Tax and transparencya
 No decision yet on imposing tax on cash transactions

Govt rakes in moolah via tax on cell phones
December, 12th 2006
If you buy a mobile phone worth Rs 4,000 today, you will be paying about 123 per cent of the cost of the mobile (which works out to Rs 4,942) as tax to the government over the next four years. 
 
At a macro level, the nearly 65 million handsets that have been sold this year will generate the government a revenue of about Rs 32,123 crore in the next four years. 
 
The basis of this calculation is simple. A study by the Indian Cellular Association (ICA) pegs the average selling price of a mobile phone in the country at Rs 4,000 and the average utility span of such a gadget at four years. 
 
An average bill per user of Rs 400 a month adds up to Rs 19,200 over the four-year utility span of a mobile phone. 
 
Now, service tax of 12.5 per cent on Rs 19,200 works out to Rs 2,350, and other revenues the government earns as access deficit charge, revenue share, and spectrum charge collectively add up to 13.5 per cent of Rs 19,200, which is Rs 2,592. 
 
Hence, a mobile user ends up paying Rs 4,942 to the government in four years. Multiply that with the number of users and you get the astronomical sum of Rs 32,123 crore 
 
The study makes it clear that the common man is bearing a hidden burden of 123 per cent on his mobile, the report says. 
 
The ICA feels that telecom services and products should be included in the consumer price index (CPI), as they will positively affect the rising figure. 
 
A mobile is an essential item now, used by even carpenters and auto drivers, and forms an important component of consumer spending. An updated construction of the CPI will show that the continuous fall in the prices of telecom products and services is having a beneficial impact on the otherwise rising CPI, the study adds.
 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - Achievements

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