By using this site, you agree to the Privacy Policy and Terms of Use.
Accept

Parami News

  • Home
  • Politics
  • India
  • World
  • Business
  • Entertainment
  • Regional
  • Sports
  • Web Stories
Search
© 2024 Parami News. All Rights Reserved.
Reading: SC grants telcos’ interest waiver on tax dues on licence fees | Parami News
Share
Sign In
Notification Show More
Font ResizerAa

Parami News

Font ResizerAa
Search
  • Home
  • Politics
  • India
  • World
  • Business
  • Entertainment
  • Regional
  • Sports
  • Web Stories
Have an existing account? Sign In
Follow US
© 2022 Foxiz News Network. Ruby Design Company. All Rights Reserved.
Parami News > Blog > India > SC grants telcos’ interest waiver on tax dues on licence fees | Parami News
India

SC grants telcos’ interest waiver on tax dues on licence fees | Parami News

Atulya Shivam Pandey
Last updated: May 21, 2024 10:49 am
Atulya Shivam Pandey
Share
3 Min Read
SC grants telcos’ interest waiver on tax dues on licence fees | Parami News
SHARE

The Supreme Court has given a major relief for telecom service providers, including amongst others Bharti Airtel, Reliance and Vodafone Idea, by waiving off interest due on income tax arising from an October 16, 2023 judgment that had held that telecom licence fee should be treated as entirely “capital in nature”.

Contents
Centre objectsNot a precedentTelecom Policy 1999

After hearing the counsel of the assessees (telcos) who said that payment of the tax demand from the year 2000-2001 itself was a “heavy burden”, Judges B.V. Nagarathna and Ujjal Bhuyyan approved a waiver of the interest levy. The telcos had requested for the atleast scrapping of interest payable on the tax for the period.

Centre objects

However, this request was objected to by Additional Solicitor General N. Venkataraman representing Income Tax Department. It was his submission that it was only logical for the assessees to pay interest if they were paying tax.

The Bench having gone through all the arguments carefully in its four-page order dated May 17 directed on Monday stated: “Since the judgment of this court is dated October 16, 2023, and having regard to Telecom Policy which commenced from year 1999; payment of interest for this period during which these cases now have to meet up with tax demand stands waived”.

Not a precedent

Nevertheless, today’s bench made it clear that this order will not be used as a guiding principle.

“This order shall not be called upon as a precedent in any other case as we have passed this order bearing in mind peculiar facts of this case and having regard to passage of time in litigation,” emphasized by bench.

The National Telecom Policy of 1994 was replaced by new Telecom Policy in July 1999.

Telecom Policy 1999

Under this policy issued in year 1999 ,a licensee (telco) would need to make payment of a one-time entry fee and also, pay license fee being a proportionate share of gross revenue generated by the licensee.

According to October 2023 judgment, “payment of license fee is inherent with the identity and existence of the license as well as trade itself. Such payment must only be treated or characterized as capital.”

The Supreme Court had emphasized that “Consequence of non-payment would result in ouster of the licensee from trade” in its October 2023 judgment.

Delhi High Court’s Appeals against which were decided by apex court were based on judgments delivered on December 2013. The High Court affirmed an ITAT finding that variable licence fee paid under policy for year 1999 are not capital but revenue expenses.

You Might Also Like

Graduation ceremony held for university colleges of engineering students

Staff of A.P. Raj Bhavan participate in Sankranthi celebrations

Two dozen workers trapped in Kannauj railway station building collapse

Bihar’s first sports university gets UGC recognition

Singer P. Jayachandran cremated with State honours in Chendamangalam

Sign Up For Daily Newsletter

Be keep up! Get the latest breaking news delivered straight to your inbox.
By signing up, you agree to our Terms of Use and acknowledge the data practices in our Privacy Policy. You may unsubscribe at any time.
Share This Article
Facebook Twitter Copy Link Print
Share
Previous Article Red-hot Royal Challengers Bengaluru ‘clear favourites’ in IPL Eliminator for Ambati Rayudu | Cricket News | Parami News Red-hot Royal Challengers Bengaluru ‘clear favourites’ in IPL Eliminator for Ambati Rayudu | Cricket News | Parami News
Next Article Is Ukraine heading for a defeat against Russia? | Parami News Is Ukraine heading for a defeat against Russia? | Parami News
Leave a comment Leave a comment

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Stay Connected

235.3kFollowersLike
69.1kFollowersFollow
11.6kFollowersPin
56.4kFollowersFollow
136kSubscribersSubscribe
4.4kFollowersFollow

Latest News

Harry Meghan LA Fire Victims: Major outrage over Harry-Meghan’s visit to LA fire victims: ‘You are not royals…merely two nitwit celebrities’
Harry Meghan LA Fire Victims: Major outrage over Harry-Meghan’s visit to LA fire victims: ‘You are not royals…merely two nitwit celebrities’
World January 11, 2025
‘My chapter is over’: Bangladesh veteran Tamim Iqbal retires from international cricket | Cricket News
‘My chapter is over’: Bangladesh veteran Tamim Iqbal retires from international cricket | Cricket News
Sports January 11, 2025
Pakistan anti-terrorism court grants bail to more than 150 workers of Imran Khan’s party

 | Parami News
Pakistan anti-terrorism court grants bail to more than 150 workers of Imran Khan’s party | Parami News
Most Recent Stories January 11, 2025
Virat Kohli and Rohit Sharma will find form again, says England pacer Tymal Mills | Cricket News
Virat Kohli and Rohit Sharma will find form again, says England pacer Tymal Mills | Cricket News
Sports January 11, 2025
//

We influence 20 million users and is the number one business and technology news network on the planet

Quick Link

  • About Us
  • Contact Us
  • Advertise With Us
  • DNPA Code of Ethics
  • Disclaimer
  • Privacy Policy

Top Categories

  • Business
  • Entertainment
  • India
  • Politics
  • Regional
  • Sports

Sign Up for Our Newsletter

Subscribe to our newsletter to get our newest articles instantly!

Follow US
© 2024 Parami News. All Rights Reserved.
Manage Consent
To provide the best experiences, we use technologies like cookies to store and/or access device information. Consenting to these technologies will allow us to process data such as browsing behavior or unique IDs on this site. Not consenting or withdrawing consent, may adversely affect certain features and functions.
Functional Always active
The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
Preferences
The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
Statistics
The technical storage or access that is used exclusively for statistical purposes. The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
Marketing
The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
Manage options Manage services Manage {vendor_count} vendors Read more about these purposes
View preferences
{title} {title} {title}
Welcome Back!

Sign in to your account

Lost your password?