• UGI USER
  • May 21, 2024
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SUPREME COURT WAIVES INTEREST ON TELCOS’ LICENSE FEE INCOME TAX DUES

Why in the news?

  • The Supreme Court waived off interest on income tax dues for telecom service providers like Bharti Airtel, Reliance, and Vodafone Idea.
  • The waiver stemmed from a judgment on October 16, 2023, declaring telecom license fees as “capital in nature”.
  • The Bench considered the Telecom Policy from 1999 and the lapse of time in litigation, thus waiving off interest for the relevant period.

 About National Telecom Policy 2012 :

  • National Telecom Policy 2012 targets accelerated, equitable, and inclusive economic growth.
  • Focuses on offering affordable, high-quality telecommunication services in rural and remote regions.
  • Aims: to bridge the digital divide and enhance connectivity across the nation.
 source:slideshare
What is Telecom Regulatory Authority of India (TRAI)?

  • Telecom Regulatory Authority of India (TRAI) is a statutory body.
  • Established under the Telecom Regulatory Authority of India Act 1997.
  • Functions as the regulator of the telecommunications sector in India.
  • Regulates the telecommunications sector in India.
  • Not completely independent; bound by directions issued under section 25 of the Act.
  • Funded by the Central Government.
  • Functions include making recommendations, administrative and regulatory tasks, fixing tariffs, and more.
  • Mandated to provide recommendations on new service providers and license terms.

TRAI Act amended in 2000, establishing Telecom Disputes Settlement and Appellate Tribunal (TDSAT).