New Delhi, Feb 28: It's good news for companies setting up new units fortelecom, ISP, and broadband projects, since the five-year tax holiday -available to telecom undertakings set up on or before March 2000 - has nowbeen extended to include all telecom, ISP, and broadband companies or unitsset up on or before March 2003. This holiday allows a further deduction of25 per cent of profits (30 per cent in case of companies), under the section80-IA.The proposed amendment will take effect retrospectively from April 1, 2001,and will apply in relation to assessment year 2001-2002 onwards.
Reacting to the Budget proposals, chairman of Telecommunications Committeeof Assocham and president, Telecom Industry Services Association (TISA), MrPK Sandell, said that allowing five-year tax holiday and 30 per centdeduction to telecom, ISP, and broadband networks is an excellentproposal.
"However, the time limit of March 31, 2003, will not result in the benefitactually enjoyed by the companies because of the bureaucratic delay thatexists for licensing and clearance procedures," he added.
According to Mr Manoj Chugh, president - India & SAARC Region, CiscoSystems, "The tax holiday being extended to telecom service providers, ISPsand broadband players will help trigger rapid spread of communicationnetworks across the country."
Mr Rajeev Mehrotra, president Association of Basic Telecom Operators, (ABTO)also welcomed the extension of the tax-holiday to infrastructure projects:"This had been one of our key demands since very few companies had been ableto start operations in any significant manner in the last five years."
Copyright © 2001 Indian Express Newspapers (Bombay) Ltd.
