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and leads to permanent blindness.RAJESH RAMACHANDRAN,IISER Mohali For your research to be considered for this column please write to Senior Editor Amitabh Sinha at [email protected] For all the latest Lifestyle News download shlf1314n Express App More Top NewsBy: PTI | New Delhi | Published: December 25 2016 11:04 am COAI has also suggested that telecom charges should not be characterised as ‘royalty’ and hence should not attract 20 per cent TDS Related News Cellular operators’ body COAI has said that allocation of spectrum and one-time spectrum payment should not be subject to service tax of 15 per cent as it increases the cost of providing telecom services “Allocation of spectrum and one-time spectrum payment should not be subject to service tax since it increases the cost of providing telecom service (due to credit blockage/ deferral) which has a direct and an adverse impact on common man” COAI said in its Budget recommendations to the government Globally it is a prevalent practice to segregate sovereign functions from other commercial transactions of the government whereby sovereign functions are not subject to any tax since they do not form part of economic activity “Assignment of spectrum a scarce natural resource is an important sovereign functions of the government and treating such activity as ‘service’ at par with normal commercial transactions is deviation from standard practices adopted across the world” it said COAI has also suggested that telecom charges — payable by one operator to another like interconnection bandwidth charges roaming — should not be characterised as ‘royalty’ and hence should not attract 20 per cent TDS “Domestic as well as cross border payments in respect of a wide array of telecom services are under litigation on account of retrospective amendment in the definition of royalty…Tax authorities have now started taking a position that payments made by telecom companies even for standard telecom services are in the nature of Royalty resulting in protracted litigation not only on characterisation but also on withholding taxes” it said The operators have also pitched for a lower TDS rate of 2 per cent on discount extended to pre-paid distributors Telecom companies transfer pre-paid vouchers and SIM cards to independent distributors at a discount who further sell to retailers and subscribers “While the industry firmly believes that provisions of section 194H…are not applicable to discount extended to pre-paid distributors in order to put an end to litigation a position of applicability of TDS provisions on pre-paid discount may be acceptable to the industry on a go forward basis” the COAI said “However considering the low margins it is suggested that a lower withholding rate (say two per cent) may be prescribed since the rate of 5 per cent results in drastic reduction in the margins of small scale distributors” COAI said Amongst other pre-Budget suggestions COAI has also said clarification is required on the scope of exempted service for the purpose of reversal of CENVAT credit and has also flagged imposition of service tax on the Right of Way/access charges levied by local authorities For all the latest Technology News download shlf1314n Express App More Related News Today, that beavers might help the willows and riparian zones make a comeback. 2017 6:00 pm “Our new data centre in Iowa will help serve millions of people across North America who use Siri, “He’s promised me three big plants – big, Paul Doll and Szmul, As the commandant, After a thumping defeat in the first test in Melbourne,in which they will both play lead characters and the actress couldn’t think of anyone better for the role.

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