Reliance Jio, Bharti Airtel, and Vodafone Concept (Vi), the highest telecom operators in India, need the federal government to take away the Common Service Obligation Fund (USOF) from the upcoming price range to scale back the burden on their enterprise. USOF was established to financially help the rollout of telecom providers within the rural areas of the nation. However the telcos need to shell out a major sum of cash in direction of the fund at common intervals, and it’s hurting their money movement.
Based on a PTI report, the telecom operators additionally need the enter tax credit score (ITC) of round Rs 35,000 crore to be returned by the federal government.
The Mobile Operators Affiliation of India (COAI) has requested for the refund of unutilised ITC of Rs 35,000 crore that can’t be put to make use of within the close to future.
Telcos Request the Authorities to Waive GST of LF and Cut back Levies
To get additional ease with their funds, the telcos have requested the authorities to waive off the Items and Companies Tax (GST) from the license charges and the spectrum utilization. Together with this, the telcos have requested a discount in levies within the upcoming price range.
It’s price noting that the federal government has already eliminated loads of prices for the telcos that was included within the adjusted gross income (AGR) dues and in addition abolished the spectrum utilization prices (SUC) for the frequencies that the telcos buy in future auctions.
The present license payment for the telcos is 8% of their AGR. Out of the 8%, the 5% payment is for USOF. COAI desires the USOF charges to be faraway from the upcoming price range.
The federal government final 12 months got here out with a aid package deal for the telecom sector, which gave the struggling operators some room to breathe. There’s nonetheless an extended technique to go for fixing the reforms within the sector, and the federal government is engaged on that with the related stakeholders.