Association of Unified Service Providers of India (AUSPI), the industry body representing CDMA and dual-technology telecom operators has sought rationalisation of multiple levies on the sector in the upcoming Budget.
As per AUSPI, the Indian telecom industry offers the cheapest tariffs in the world even though it has to pay very high taxes. The Indian telecom sector, facing penalties to the tune of Rs 65 billion, is subject to service tax, license fees including levy for Universal Service Obligation Fund, and spectrum charges. Further, several other charges in the form of state-level additional taxes such as Octroi, value-added tax (VAT), stamp duty, entry tax and levies on towers as well as right-of-way (RoW) and other municipal charges are applicable.
These levies affect the growth of mobile services and add to the cost of services. AUSPI, has, therefore, requested that multi levies imposed on telecom sector should be rationalised. It further hopes that an industry-friendly single taxation regime in the telecom sector will be a key highlight of the upcoming Budget.
AUSPI has also noted that it is important to establish a suitable appellate process, such that the Department of Telecommunication (DoT) can independently review the imposition of penalties and conclude on the matter.
Auspi represents pure play CDMA operators like Sistema Shyam TeleServices Limited and dual technology players such as Reliance Communications and Tata Teleservices.
