Mobile tower companies have written to telecom regulator TRAI alleging that coercive action by local bodies for taxes, retrograde orders and nobenefit under GST are the key impediments facing them to run business.
The mobile tower firms, under the umbrella organisationof Tower and Infrastructure Providers Association (Taipa) have sought abolition of property and other taxes imposed in statesthat are not in sync with central government rules.
"Some of the municipalities and states consider telecom towers only as a source of revenue instead of critical infrastructure essential for the common public. They calculateproperty taxes based upon the rentals, not linked to the standard and well established guidance/rateable value for thearea," Taipa said in its submission to Telecom RegulatoryAuthority of India (TRAI).
The industry body said that property tax on mobile towersshould be dismissed as the state and local authoritiesincluding corporations have no competence to levy and collectsuch tax under Indian Telegraph Act.
"The issue related to levy of arbitrary and exorbitantproperty tax on telecom towers at different rates or amountsby different local authorities including municipalcorporations, municipalities and state governments coupledwith coercive actions such as sealing of towers, disconnectionof power supply, nuisance at sites, use of force and damage totelecom sites etc. have again come to light in recent times,"Taipa said.
It said that more than 250 tower sites have been sealed,removed or demolished by various municipal corporations inMaharashtra resulting in huge impact on telecom services onover 3 million consumers.
The industry body said that its members which includefirms like Indus Towers, Bharti Infratel and American Towers,own 90 per cent of the telecom infrastructure in the countrybut still the government has not inlcuded them under Right ofWay (RoW) Rules notified by the Department of Telecom lastyear.
The RoW rules protects telecom companies from high ratescharged from them by various government agencies and removesimpediments of permits by different authorities.
The industry body raised concerns over a government orderasking mobile tower companies to either take a telecom licenceor transfer ownership of some items like mobile antenna,feeder cable etc to telecom operators.
"Government should enable faster provision of costeffective common telecom infrastructure for the benefit ofpublic at large and not revenue generation from licenses...which has cascading effects and eventually leads to additionalcost to public at large," Taipa said.
It said that the government under GST has not allowed taxcredit on the tax paid by telecom operators on bills generatedby them.
"With CENVAT credit not available (under the plant &machinery) to tower infrastructure business, the cost ofservices will rise considerably and billing by IP-1 to TSPs(telecom service providers) will need to include the componentof additional tax implication in its overall cost structure,"Taipa said. PRSJM
The mobile tower firms, under the umbrella organisationof Tower and Infrastructure Providers Association (Taipa) have sought abolition of property and other taxes imposed in statesthat are not in sync with central government rules.
"Some of the municipalities and states consider telecom towers only as a source of revenue instead of critical infrastructure essential for the common public. They calculateproperty taxes based upon the rentals, not linked to the standard and well established guidance/rateable value for thearea," Taipa said in its submission to Telecom RegulatoryAuthority of India (TRAI).
The industry body said that property tax on mobile towersshould be dismissed as the state and local authoritiesincluding corporations have no competence to levy and collectsuch tax under Indian Telegraph Act.
"The issue related to levy of arbitrary and exorbitantproperty tax on telecom towers at different rates or amountsby different local authorities including municipalcorporations, municipalities and state governments coupledwith coercive actions such as sealing of towers, disconnectionof power supply, nuisance at sites, use of force and damage totelecom sites etc. have again come to light in recent times,"Taipa said.
It said that more than 250 tower sites have been sealed,removed or demolished by various municipal corporations inMaharashtra resulting in huge impact on telecom services onover 3 million consumers.
The industry body said that its members which includefirms like Indus Towers, Bharti Infratel and American Towers,own 90 per cent of the telecom infrastructure in the countrybut still the government has not inlcuded them under Right ofWay (RoW) Rules notified by the Department of Telecom lastyear.
The RoW rules protects telecom companies from high ratescharged from them by various government agencies and removesimpediments of permits by different authorities.
The industry body raised concerns over a government orderasking mobile tower companies to either take a telecom licenceor transfer ownership of some items like mobile antenna,feeder cable etc to telecom operators.
"Government should enable faster provision of costeffective common telecom infrastructure for the benefit ofpublic at large and not revenue generation from licenses...which has cascading effects and eventually leads to additionalcost to public at large," Taipa said.
It said that the government under GST has not allowed taxcredit on the tax paid by telecom operators on bills generatedby them.
"With CENVAT credit not available (under the plant &machinery) to tower infrastructure business, the cost ofservices will rise considerably and billing by IP-1 to TSPs(telecom service providers) will need to include the componentof additional tax implication in its overall cost structure,"Taipa said. PRSJM
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