9 hours Ago
Shares of telecom companies like Bharti Airtel and Vodafone Idea are likely to remain in focus today as the Supreme Court of India has granted the telecom companies a right to claim credit for duties paid on parts such as tower components and green shelters. The ruling is expected to significantly benefit key players in the sector, including Bharti Airtel, Vodafone, Tata Teleservices, Reliance Communications , and Indus Towers , by allowing them to claim tax credits previously considered ineligible. This decision overturns a previous judgment by the Bombay High Court , which had classified these items as non-capital goods, thereby denying the companies cenvat credit for the duties paid.
The decision is seen as a notable victory for telecom operators, easing the financial burden related to infrastructure expenses. The dispute centered on whether telecom operators could claim Cenvat credits for duties paid on items like tower parts, shelters, office chairs, and printers, which are essential for telecom services. Tax authorities argued these items were not directly used in providing telecom services and therefore ineligible for credit.
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Some courts have disagreed with the Bombay High Court and allowed telecom companies to claim tax credits on towers and shelters, showing different views on the issue. ( Disclaimer : Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times) (You can now subscribe to our ETMarkets WhatsApp channel ).
