Ernst & Young analyses the impact of the Budget on Bharti Airtel and R-Com.
Here are few excerpts of the analysis publised on Business Standard recently -
Bharti Airtel
- It would be possible to maximize the Cenvat Credit by either reversing the credit attributable to exempt services or making payment of 8 percent of the exempt services- Excise duty has been fully exempted on wireless data modem cards- Cascading effect of DDT payouts in two layer structures largely mitigated- FBT cost could go down- Deduction for preliminary expenses incurred on extension/ setting up of units made available to service companies- Add back of deferred tax, DDT, etc for MAT purposes could increase tax liability
R-COM
- It would be possible to maximize the Cenvat Credit by either reversing the credit attributable to exempt services or making payment of 8 percent of the exempt services- Excise duty has been fully exempted on wireless data modem cards- National Calamity Contingent duty (NCCD) at the rate of 1 percent has been imposed on mobile phones. Credit of any duty of excise other than NCCD will not be utilized for payment of 1percent NCCD on mobile phones- Cascading effect of DDT payouts in two layer structures largely mitigated- FBT cost could go down- Deduction for preliminary expenses incurred on extension/ setting up of units made available to service companies- Add back of deferred tax, DDT, etc for MAT purposes could increase tax liability
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5 comments:
Will this budget give some relief to consumers of airtel services..??
will there be any decline in rates of airtel calling cards and other services?
will there be any exemption in the all rates, if the service tax or other taxes are reduced..?
Man!!! Does that mean less prices for internet and mobile connection. Yipee!!!
Even i Hope lokesh that prices reduce and the net becomes faster..
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