Telcos need to pay GST with spectrum charges

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NEW DELHI: Telecom firms could have to pay Goods and Services Tax (GST) alongside with the instalments paid in the direction of spectrum charges, a senior official stated. The Department of Telecom (DoT) will maintain the subsequent spherical of spectrum public sale on June 6 for eight spectrum bands meant for cell phone providers. The base worth for the public sale has been set at Rs 96,317 crore.
The spectrum will probably be assigned for 20 years and profitable bidders will probably be allowed to make funds in 20 equal annual instalments within the coming mega public sale.The official stated GST could have to be paid at 18 per cent by telecom firms alongside with every instalment.
“The GST Council in its next meeting is likely to clarify the procedure for payment of GST by companies winning the bids during the spectrum auction,” the official stated.
The clarification will finish confusion amongst discipline formations concerning the tactic for assortment of GST within the public sale course of. All the obtainable spectrum within the 800 MHz, 900 MHz, 1,800 MHz, 2,100 MHz, 2,300 MHz, 2,500 MHz, 3,300 MHz, and 26 GHz bands are a part of the public sale.
The complete frequencies being put below the hammer are valued at Rs 96,317 crore on base worth. Moore Singhi government director Rajat Mohan stated below the GST regulation, spectrum fee is roofed below licensing providers for the appropriate to use different pure sources on which tax is levied at 18 per cent.
“Spectrum charges are payable in a phased manner over a period of time, and thereby tax payment shall also be staggered. The board should issue a clarification in this respect so as to avoid any litigation in this regard,” Mohan stated.


Nilesh Desai
Nilesh Desaihttps://www.TheNileshDesai.com
The Hindu Patrika is founded in 2016 by Mr. Nilesh Desai. This website is providing news and information mainly related to Hinduism. We appreciate if you send News, information or suggestion.

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