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 :: VAT RATES :: cpt :: TAX RATES - GOODS TAXABLE @ 4% :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: articles on VAT and GST in India :: ARTICLES ON INPUT TAX CREDIT IN VAT :: VAT Audit :: ACCOUNTING STANDARD :: form 3cd :: empanelment :: list of goods taxed at 4% :: TDS :: due date for vat payment :: Central Excise rule to resale the machines to a new company
 
 
« Budget Extravaganza »
 With demonetisation inducing tax compliance will PM Modi cut tax rates in Budget 2017?
 State plan budget utilisation in Odisha
 Maharashtra wants budget advanced to February
 Coastal economic zones may get 10-year tax exemption in next Budget
 Why advancing the Union Budget date may not make much difference
 Govt keen 2017-18 budget should not clash with polls: Arun Jaitley
 Finance Ministry seeks industry suggestions on taxation for Budget
 Budget should focus on fiscal firm up
 Finance ministry keen to present Budget on February 2 or earlier
 Poor railway performance may mar merged Budget
 Cabinet’s formal nod to be sought for Budget on Feb. 1

Run-up to the Budget: Hoping for incentives
February, 16th 2010

The telecom sector, probably the only sector that remained unaffected by the recent global economic slowdown, is hoping for some incentives from Union Finance Minister Pranab Mukherjee in his budget proposals for 2010-11.

Apart from its long-standing demand of relaxation of the severe tax regime, telecom players are eyeing some announcements that will give the much-needed push to the telecom equipment manufacturing segment and m-commerce.

The telecom sector, particularly the mobile industry, has been demanding rationalisation of the tax structure. The industry, which pays both Central and State-level taxes, has been seeking a unified tax rate. It shells out almost 30 per cent of its revenues, making the industry the highest tax-paying one.

Most affected are mobile operators. They have seen their profits come down in the past couple of years due to fierce competition, resulting in Indians enjoying the cheapest telecom tariffs globally.

Besides the license fee that is paid to the government, a mobile operator contributes towards the Centre-monitored Universal Service Obligation (USO) Fund meant for the growth of rural telephony. The fund has remained under-utilised, leaving private operators livid.

There is also excise duty, service tax and other cess. Telecom operators say that on the one hand, the government considers them part of the infrastructure sector, but on the other, they pay taxes on a par with the luxury sector.

Industry players want an end to this disparity and the telecom sector accorded status as given to other industries in the infrastructure sector.

Telecom players also want tax holiday benefits granted to new entrants who have started providing service after March 31, 2005. Pointing out that this could hinder the rapid growth of the sector which is now adding almost 1.5 crore subscribers every month operators say that the cut-off date for new operators should be extended to the end of current financial year (March 31, 2010) and income-tax exemptions being given to old operators extended from the current 15 years to 20 years.

To maintain its profitability, the industry is also going to see major mergers and acquisitions within the country. But the absence of a clear-cut policy and the complex tax structure created obstacles in the path of this much-awaited consolidation, which the industry leaders say the government needs to address urgently.

Similarly, m-commerce is an area the government needs to focus on through regulatory framework to facilitate business and day-to-day transactions, besides helping rural people become a part of it.

The telecom manufacturing industry, meanwhile, is looking forward to some incentives and the availability of cheap and easy credit, besides some lowering of taxes and boost to exports.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - Our Portfolio

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