R Com and Bharti Airtel After Budget 2008

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