Budget Impact on Telecom Sector
Overall impact: Positive
Excise Duty
No change
Customs Duty
Cellular phones and pagers
have been exempted from countervailing duty of 16%. However basic customs
duty on these products has been increased from 5% to 10%.
Basic customs duty on GPS (Global Positioning
System) apparatus has been reduced from 35% to 25%
Basic customs duty on aerial or antennae of
a kind used with apparatus for radio-telephony and radio telegraphy has been
reduced from 15% to 10%.
Other Changes
With a view to encourage
rapid consolidation and growth in the telecom sector, the benefit under Section
72A of the Income Tax Act, to carry forward losses and unabsorbed depreciation
in case of amalgamation of companies in specified sectors, has been extended
to companies providing telecom services related to infrastructure.