NEW DELHI: Cellular operators' body COAI<\/a> has said that allocation of spectrum and one-time spectrum payment should not be subject to service tax<\/a> of 15 per cent, as it increases the cost of providing telecom<\/a> services.
\n
\n\"Allocation of spectrum and one-time spectrum payment should not be subject to service tax, since it increases the cost of providing telecom service (due to credit blockage\/ deferral), which has a direct and an adverse impact on common man,\" COAI said in its Budget recommendations to the government.
\n
\nGlobally, it is a prevalent practice to segregate sovereign functions from other commercial transactions of the government whereby sovereign functions are not subject to any tax since they do not form part of economic activity.
\n
\n\"Assignment of spectrum, a scarce natural resource, is an important sovereign functions of the government and treating such activity as 'service' at par with normal commercial transactions is deviation from standard practices adopted across the world,\" it said.
\n
\nCOAI has also suggested that telecom charges -- payable by one operator to another like interconnection, bandwidth charges, roaming -- should not be characterised as 'royalty', and hence should not attract 20 per cent TDS.
\n
\n\"Domestic as well as cross border payments in respect of a wide array of telecom services are under litigation on account of retrospective amendment in the definition of royalty...Tax authorities have now started taking a position that payments made by telecom companies, even for standard telecom services, are in the nature of Royalty, resulting in protracted litigation not only on characterisation but also on withholding taxes,\" it said.
\n
\nThe operators have also pitched for a lower TDS rate of 2 per cent on discount extended to pre-paid distributors. Telecom companies transfer pre-paid vouchers and SIM cards to independent distributors at a discount, who further sell to retailers and subscribers.
\n
\"While the
industry<\/a> firmly believes that provisions of section 194H...are not applicable to discount extended to pre-paid distributors, in order to put an end to litigation, a position of applicability of TDS provisions on pre-paid discount may be acceptable to the industry on a go forward basis,\" the COAI said.
\n
\n\"However, considering the low margins, it is suggested that a lower withholding rate (say two per cent) may be prescribed since the rate of 5 per cent results in drastic reduction in the margins of small scale distributors,\" COAI said.
\n
Amongst other pre-Budget suggestions, COAI has also said clarification is required on the scope of exempted service for the purpose of reversal of
CENVAT credit<\/a>, and has also flagged imposition of service tax on the Right of Way\/access charges levied by local authorities. \n<\/p><\/body>","next_sibling":[{"msid":56145453,"title":"Bharti Airtel challenges TRAI's permission to Reliance Jio to continue free offer","entity_type":"ARTICLE","link":"\/news\/bharti-airtel-challenges-trais-permission-to-reliance-jio-to-continue-free-offer\/56145453","category_name":null,"category_name_seo":"telecomnews"}],"related_content":[],"msid":56145571,"entity_type":"ARTICLE","title":"COAI asks govt to remove service tax on spectrum allocation","synopsis":"Amongst other pre-Budget suggestions, COAI has also said clarification is required on the scope of exempted service for the purpose of reversal of CENVAT credit, and has also flagged imposition of service tax on the Right of Way\/access charges levied by local authorities.","titleseo":"telecomnews\/coai-asks-govt-to-remove-service-tax-on-spectrum-allocation","status":"ACTIVE","authors":[],"Alttitle":{"minfo":""},"artag":"PTI","artdate":"2016-12-23 22:47:45","lastupd":"2016-12-23 22:48:03","breadcrumbTags":["Telecom","industry","Service tax","COAI","spectrum auction","Cenvat credit","Budget 2017"],"secinfo":{"seolocation":"telecomnews\/coai-asks-govt-to-remove-service-tax-on-spectrum-allocation"}}" data-authors="[" "]" data-category-name="" data-category_id="" data-date="2016-12-23" data-index="article_1">

COAI要求政府消除频谱分配服务税

在其他预算建议,COAI也表示需要澄清豁免的范围服务为目的的逆转CENVAT信贷,并标记服务税的征收权/访问当地政府征收费用。

  • 更新于2016年12月23日晚上10点是

新德里:手机运营商的身体COAI说的频谱分配和一次性光谱付款不应受服务税增加15%的,因为它提供的成本电信服务。

“频谱分配和光谱一次性付款不应受服务税,因为它增加的成本提供电信服务(由于信贷堵塞/延期),直接和普通人造成负面的影响,”COAI在政府预算建议说。

在全球范围内,这是一个普遍的实践隔离主权功能其他商业交易的政府,即主权功能不受任何税收,因为他们并不会形成经济活动的一部分。

“频谱分配稀缺的自然资源,是一个重要的主权政府的功能和治疗“服务”等活动,与正常商业交易偏离标准实践采用世界各地,”它说。

COAI也建议电信费用付款,运营商之间互联,带宽费用,漫游,不应定性为“皇室”,因此不应该吸引TDS 20%。

“国内和跨境支付的一系列广泛的电信服务正在诉讼的回顾性修正案在皇室的定义……税务机关已经开始支付由电信公司的位置,即使对电信服务标准,在皇室的性质,导致了旷日持久的诉讼不仅在人物塑造也预扣税,”它说。

运营商也为降低折扣TDS 2%的速度扩展到预付费分销商。电信公司转让预付费折价券和SIM卡独立分销商,他们进一步卖给零售商和用户。

”,而行业坚信,第194节的规定h……不适用折扣扩展到预付费经销商,为了终结诉讼,TDS预付费折扣规定的适用性的位置可能是可接受的,这个行业在前进的基础上,“COAI说。

“然而,考虑到低利润率,建议扣缴率较低(百分之二)可以自定率为5%的结果在小规模分销商的利润大幅减少,“COAI说。

在其他预算建议,COAI也表示豁免的范围上都需要澄清服务为目的的逆转CENVAT信贷,也标记服务税的征收权/访问当地政府征收费用。

  • 发布于2016年12月23日下午47点坚持
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NEW DELHI: Cellular operators' body COAI<\/a> has said that allocation of spectrum and one-time spectrum payment should not be subject to service tax<\/a> of 15 per cent, as it increases the cost of providing telecom<\/a> services.
\n
\n\"Allocation of spectrum and one-time spectrum payment should not be subject to service tax, since it increases the cost of providing telecom service (due to credit blockage\/ deferral), which has a direct and an adverse impact on common man,\" COAI said in its Budget recommendations to the government.
\n
\nGlobally, it is a prevalent practice to segregate sovereign functions from other commercial transactions of the government whereby sovereign functions are not subject to any tax since they do not form part of economic activity.
\n
\n\"Assignment of spectrum, a scarce natural resource, is an important sovereign functions of the government and treating such activity as 'service' at par with normal commercial transactions is deviation from standard practices adopted across the world,\" it said.
\n
\nCOAI has also suggested that telecom charges -- payable by one operator to another like interconnection, bandwidth charges, roaming -- should not be characterised as 'royalty', and hence should not attract 20 per cent TDS.
\n
\n\"Domestic as well as cross border payments in respect of a wide array of telecom services are under litigation on account of retrospective amendment in the definition of royalty...Tax authorities have now started taking a position that payments made by telecom companies, even for standard telecom services, are in the nature of Royalty, resulting in protracted litigation not only on characterisation but also on withholding taxes,\" it said.
\n
\nThe operators have also pitched for a lower TDS rate of 2 per cent on discount extended to pre-paid distributors. Telecom companies transfer pre-paid vouchers and SIM cards to independent distributors at a discount, who further sell to retailers and subscribers.
\n
\"While the
industry<\/a> firmly believes that provisions of section 194H...are not applicable to discount extended to pre-paid distributors, in order to put an end to litigation, a position of applicability of TDS provisions on pre-paid discount may be acceptable to the industry on a go forward basis,\" the COAI said.
\n
\n\"However, considering the low margins, it is suggested that a lower withholding rate (say two per cent) may be prescribed since the rate of 5 per cent results in drastic reduction in the margins of small scale distributors,\" COAI said.
\n
Amongst other pre-Budget suggestions, COAI has also said clarification is required on the scope of exempted service for the purpose of reversal of
CENVAT credit<\/a>, and has also flagged imposition of service tax on the Right of Way\/access charges levied by local authorities. \n<\/p><\/body>","next_sibling":[{"msid":56145453,"title":"Bharti Airtel challenges TRAI's permission to Reliance Jio to continue free offer","entity_type":"ARTICLE","link":"\/news\/bharti-airtel-challenges-trais-permission-to-reliance-jio-to-continue-free-offer\/56145453","category_name":null,"category_name_seo":"telecomnews"}],"related_content":[],"msid":56145571,"entity_type":"ARTICLE","title":"COAI asks govt to remove service tax on spectrum allocation","synopsis":"Amongst other pre-Budget suggestions, COAI has also said clarification is required on the scope of exempted service for the purpose of reversal of CENVAT credit, and has also flagged imposition of service tax on the Right of Way\/access charges levied by local authorities.","titleseo":"telecomnews\/coai-asks-govt-to-remove-service-tax-on-spectrum-allocation","status":"ACTIVE","authors":[],"Alttitle":{"minfo":""},"artag":"PTI","artdate":"2016-12-23 22:47:45","lastupd":"2016-12-23 22:48:03","breadcrumbTags":["Telecom","industry","Service tax","COAI","spectrum auction","Cenvat credit","Budget 2017"],"secinfo":{"seolocation":"telecomnews\/coai-asks-govt-to-remove-service-tax-on-spectrum-allocation"}}" data-news_link="//www.iser-br.com/news/coai-asks-govt-to-remove-service-tax-on-spectrum-allocation/56145571">