Last week, the Delhi high court allowed CENVAT<\/a> credit or Central Value Added Tax on telecom towers<\/a> and parts including pre-fabricated shelters-- which was under dispute between the tax authorities which argued that on the ground of ‘immovable’ nature of equipment, the tower firms did not qualify for input tax credit<\/a>.
\"The availability of Input tax credit<\/a> (CENVAT<\/a> credit) mechanism will reduce overall billing by IP-1s to telecom service providers,\" Tilak Raj Dua, Director General, Tower and Infrastructure Providers Association (Taipa<\/a>) said.
Dua added that the group honours the Delhi high court verdict for allowing CENVAT credit on telecom towers<\/a> and related shelters, and accessories which was available before the Goods and Service Tax (GST) regime.
Telecom infrastructure industry, according to the Delhi-based group, makes a direct contribution of more than Rs 5,000 crores annually in corporate income tax and service tax and invests more than Rs 10,000 crores annually in equipment procurement such as towers, shelters, batteries, air-conditioners, DG sets and power management systems.
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