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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.

Duty Structure

Product

Excise

Customs (Basic)

 

2001-02

2002-03

2001-02

2002-03

Transmission Apparatus

16% 

16% 

15%

15% 

Transmission Apparatus incorporating Reception Apparatus
16% 
16% 
15% 
15% 
Cellular phones
16% 
16% 
5% 
10% 
Battery Packs for Cellular Phones
16% 
16% 
15% 
15% 
Optical Fibre Cable
16% 
16% 
25% 
25% 
Optical Fibre Cable- For mfr. of telecom grade Optical fibre cables
16% 
16% 
15% 
15% 
Telephone Sets, Cordless Phones, Videophones, Fax machines, Teleprinters, Telephonic or Telegraphic switching apparatus
16% 
16% 
15% 
15% 
Telephone Answering Machines
16% 
16% 
15% 
15% 
Electric Conductors Used for Telecom
16% 
16% 
15% 
15% 

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