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DoT has decided to amend the guidelines governing licence fee for foreign carriers offering services in India using the infrastructure of existing operators.

April 15, 2009
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DoT has decided to amend the guidelines governing licence fee for foreign carriers offering services in India using the infrastructure of existing operators. According to current rules, foreign players have to pay licence fee once they buy bandwidth from existing operators and again when they resell it to enterprises and their customers. DoT is looking at two models –­ application of excise tax or value added tax (VAT) –­ to avoid double taxation. With regard to the excise tax regime, the 6 per cent revenue share applies only to transactions where the service is provided to the end-user. Under the VAT regime, all providers will contribute on the basis of their sales; however, each carrier will be able to deduct the value of any telecom service it has purchased.

 
 
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