Supreme Court Verdict Eases Telecom Tax Burden

The Supreme Court ruled in favor of telecom companies, allowing them to claim tax credits on infrastructure duties. This decision, hailed by industry leaders, is expected to aid compliance and reduce financial stress, supporting digital infrastructure growth. COAI and Indus Towers praise the judgment's fairness and positive financial impact.

The Supreme Court's recent verdict granting telecom companies the ability to claim tax credits on infrastructure duties represents a significant relief for the industry, according to the Cellular Operators Association of India (COAI).

In a statement, COAI Director General SP Kochhar described the ruling as a reinforcement of fairness and consistency in taxation practices, welcoming the affirmation of telecom firms' rights to claim credits for taxes and duties paid on towers and related components, including green shelters.

Industry leaders, including Prachur Sah, MD and CEO of Indus Towers, highlighted the positive impact on financial exposures, with the Supreme Court upholding a previous Delhi High Court decision that allows CENVAT credit on towers and shelters. This landmark ruling benefits mobile service providers by extending credit eligibility under the CENVAT Credit Rules of 2004, facilitating reduced financial burdens and furthering the advancement of digital infrastructure across India.

(With inputs from agencies.)