|
Incentives to Promote Telecom Equipments Manufacturing
Ø Custom
duty on ITA-I product reduced to zero w.e.f. 01.03.2005.
Ø 4%
additional duty on import of ITA products to countervail the
state level taxes.
Ø No
industrial license for manufacturing of telecom equipment.
Simple Industrial Entrepreneur Memorandum (IEM) has to be
filed with SIA.
Ø 100%
Foreign Direct Investment (FDI) through automatic route.
Ø Fully
repatriable dividend income and capital invested
Ø
Payments for royalty, lumpsum fee for transfer of
technology and payments for use of
trademark/brand name on the automatic route
Ø Promotion
of telecom product specific SEZs.
Ø Modification
of Electronic Hardware technology Park (EHTP)/Special Economic
Zones (SEZs) scheme to allow 100% sales in the Domestic Tariff
Area (DTA) for the purpose of meeting export obligations.
Ø Import
of all capital goods for manufacturing telecom equipment
does not require any license.
Incentives for Promotion of Service Sectors
Ø Any
undertaking which has started or starts providing
telecommunication services whether basic or cellular,
including radio paging domestic satellite service, network of
trunking, broadband network and internet services on or after
the 1st day of April, 1995, but on or before the 31st day
of March 2005, will be allowed in computing the total income,
a deduction of, an amount equal to hundred percent of profits
and gains derived from such business for ten consecutive
assessment years.
Ø Import
of specified telecom equipment (ITA1 Products) is permitted at
zero customs duty rates.
Incentives for Exporters
Ø 10
year income tax holiday for EOU/EPZ/STP/EHTP units.
Ø Export
income is exempt from income tax for all exporters.
Ø
Export Promotion Capital Goods Scheme (EPCG) allows import
of capital goods for pre production, production and
post production (including CKD/SKD thereof as well as
computer software systems) at 3 % Customs duty, subject to an
export obligation equivalent to 8 times of duty saved on
capital goods imported under EPCG scheme, to be fulfilled in 8
years reckoned from Authorization issue date. However , for
SSI units, import of capital goods at 3 % Customs duty shall
be allowed, subject to fulfillment of export obligation
equivalent to 6 times of duty saved on capital goods, in 8
years from Authorization issue-date, provided the landed cif
value of such imported capital goods under the scheme does not
exceed Rs. 50 lakhs and total investment in plant and
machinery after such imports does not exceed SSI limit.
However, in respect of EPCG Authorization with a duty saved
amount of Rs. 100 crores or more, export obligation shall be
fulfilled in 12 years.
Ø Tax
holiday 100% for five years and 30% for next five years in a
block of 15 years.
Ø Infrastructure
Telecom equipment exempted from customs duty.
Ø Reduction
of customs Duty on Mobile Phones to 0%.
Ø Exemption
from Excise duty on Cellular Phones and it components, Pagers,
Radio Trunking Terminals and Parts.
Ø Telecom
services sector allowed the benefit of carry forward of losses
on mergers.
Incentives
for R&D
Ø
200
% weighted tax deduction on expenditure incurred for in house
research and development (R&D) |
