Telecom tower (Photo by W Rorrkychand Sing/

Budget 2016: Service Tax to be Imposed on Spectrum Trading

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As a part of Union Budget 2016, Finance Minister Arun Jaitley said that service tax will be imposed on spectrum trading, which results in increased burden on Indian telcos. “As the input costs for the main input of spectrum gets costlier, it is inevitable that some or all of it will get passed on to the customer, thus leading to higher costs to the consumer,” COAI Director General Rajan S Mathews told

“I propose to amend the Finance Act, 1994 so as to declare assignment by the Government of the right to use the radio-frequency spectrum and its subsequent transfers a service, to make it clear that assignment of right to use the spectrum is a service leviable to service tax and not sale of intangible goods,” Jaitley said. Read more

Sweekar S

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