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India Equity Research Reports, IPO and Stock News
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TELECOM
BUDGET HIGHLIGHTS & IMPACT
With gross subscriber base reaching 770 million and revenues crossing USD 20 bn,
Indian telecom sector has reached its maturity phase with incremental growth
coming from increasing penetration in rural/semi-urban areas.
In the budget, government has specified that it expects to raise Rs 296.5 bn
through recurring license fees and other usage charges from the telecom sector.
The usage charges include license fees from the telecom operators, receipts on
account of spectrum usage charges and auction of third generation (3G) and
broadband wireless access (BWA) spectrum.
n Status Quo for section 80IA (12A) of IT act.
Impact: Telecom sector has been looking forward for the extension of the
tax holiday benefits under Section 80IA of the I-T Act especially for the new
players in the industry. Such extension would have provided thrust to the industry
in the short to medium term in terms of the potential tax savings.
n Status Quo for section 80IA (12A) of IT act.
Impact: Amidst hyper-competition in the sector that has been forcing telecom
companies to streamline their operations, consolidation appears to be a viable
and inevitable option. However, the restrictive provisions in Section 80IA(12A)
of the I-T Act denying tax holiday to undertakings in the event of amalgamation
has been deterrent to such consolidations in the sector.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
TELECOM
BUDGET HIGHLIGHTS & IMPACT
With gross subscriber base reaching 770 million and revenues crossing USD 20 bn,
Indian telecom sector has reached its maturity phase with incremental growth
coming from increasing penetration in rural/semi-urban areas.
In the budget, government has specified that it expects to raise Rs 296.5 bn
through recurring license fees and other usage charges from the telecom sector.
The usage charges include license fees from the telecom operators, receipts on
account of spectrum usage charges and auction of third generation (3G) and
broadband wireless access (BWA) spectrum.
n Status Quo for section 80IA (12A) of IT act.
Impact: Telecom sector has been looking forward for the extension of the
tax holiday benefits under Section 80IA of the I-T Act especially for the new
players in the industry. Such extension would have provided thrust to the industry
in the short to medium term in terms of the potential tax savings.
n Status Quo for section 80IA (12A) of IT act.
Impact: Amidst hyper-competition in the sector that has been forcing telecom
companies to streamline their operations, consolidation appears to be a viable
and inevitable option. However, the restrictive provisions in Section 80IA(12A)
of the I-T Act denying tax holiday to undertakings in the event of amalgamation
has been deterrent to such consolidations in the sector.
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