COAI Pushes for Loss Carry Forward, Tax Exemptions, and Fee Reduction

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COAI Pushes for Loss Carry Forward, Tax Exemptions, and Fee Reduction

Telecom Industry Seeks Relief in Budget Recommendations

The Cellular Operators Association of India (COAI), representing major telecom players like Reliance Jio, Bharti Airtel, and Vodafone Idea, has urged the Finance Ministry to introduce a special regime for telecom operators. This regime would allow them to carry forward and set off business losses for up to 16 assessment years, compared to the current limit of 8 years.

COAI argues that the longer recovery period is crucial for companies facing extended financial challenges. The association cites the Supreme Court's 2019 ruling on Adjusted Gross Revenue (AGR) calculations, which resulted in additional AGR dues for telecom operators. This ruling, coupled with the need for substantial capital investments due to technological advancements, has put significant stress on the sector.

Exemption from service tax on the "assignment of right to use natural resources"

Slashing of customs duty on telecom equipment to zero

Suspension of the universal service obligation fund (USOF) until the existing corpus is exhausted

Reduction of the license fee from 3% to 1%

The association highlights the importance of these measures in ensuring the continued growth and development of the telecom sector, which plays a vital role in the Indian economy.

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