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Cell tower operators seeks abolition of property tax

Cell tower operators seeks abolition of property tax

Mobile tower corporations have written to telecom regulator TRAI alleging that coercive movement with the aid of neighborhood bodies for taxes, retrograde orders, and no gain under GST is the important thing impediments facing them to run a business.

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Under the umbrella organization of Tower and Infrastructure Providers Association (Taipa), the cell tower corporations have sought the abolition of assets and different taxes imposed in states that aren’t in sync with vital authorities policies.

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“Some municipalities and states do not forget telecom towers best as a source of sales in preference to essential infrastructure essential for the not unusual public. They calculate property taxes based totally upon the leases, not connected to the same old and nicely-established steering/rateable cost for the location,” Taipa said in its submission to Telecom Regulatory Authority of India (TRAI).

The enterprise frame said that assets tax on cellular towers need to be dismissed as the state and nearby government such as corporations, don’t have any competence to levy and gather such tax underneath Indian Telegraph Act.

“The difficulty associated with a levy of arbitrary and exorbitant belongings tax on telecom towers at one of a kind costs or amounts through one of a kind local government including municipal companies, municipalities, and Kingdom governments coupled with coercive actions inclusive of sealing of towers, disconnection of energy supply, a nuisance at sites, use of pressure and harm to telecom sites and so on. Have once more come to mild in recent times,” Taipa stated.

It said that greater than 250 tower websites were sealed, removed, or demolished with the aid of numerous municipal corporations in Maharashtra, resulting in a massive effect on telecom services on over 3 million customers.

The enterprise frame stated that its contributors, which encompass corporations like Indus Towers, Bharti Infratel, and American Towers, own ninety per cent of the telecom infrastructure inside us of a but still, the authorities have now not included them under Right of Way (RoW) Rules notified by way of the Department of Telecom ultimate 12 months.

The RoW guidelines protect telecom groups from high prices charged by using diverse government groups and remove impediments of permits with extraordinary authorities.

The enterprise body raised worries over a government order asking cellular tower corporations to either take a telecom license or switch possession of a few objects like cell antenna, feeder cable, etc., to telecom operators.

“Government have to enable the faster provision of value-effective common telecom infrastructure for the benefit of the public at large and no longer sales technology from licenses… Which has cascading outcomes and in the results in an additional cost to the public at large,” Taipa said.

The authorities underneath GST have now not allowed a tax credit for the tax paid with the aid of telecom operators on bills generated using them.

“With CENVAT credit no longer to be had (under the plant & equipment) to tower infrastructure business, the value of offerings will upward thrust substantially and billing with the aid of IP-1 to TSPs (telecom provider vendors) will want to include the thing of extra tax implication in its standard price structure,” Taipa stated.

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