TEMA releases budget recommendations for telecom industry

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Telecom Equipment Manufacturers Association of India (TEMA) has shared its budget recommendations.

Grant of infrastructure status

Grant of Infrastructure status to the domestic telecom equipment manufacturing companies complying with PMA provisions will help the industry to take benefits of the incentives given to the infrastructure sector.

R&D support for technology development

R&D and IPR creation are critical factors for strengthening the manufacturing sector in the country.

In order to encourage more R&D in the sector, we propose to introduce 5 % cess on user of telecom services (service providers) to create a corpus for supporting R&D for technology development in telecom sector.

Levy duties on non-ITA products

The Government had levied duties on non-ITA products in the last Union Budget (FY 2014-15), where some of the telecom products have been brought under the duty regime.

There are many telecom / ICT products which are being imported into the country under others category at zero duty.

The products falling under this  Category and are outside the scope of original ITA list, may suitably be reviewed and may be brought under the duty regime of about 25 percent.

Benefits under IT Act Section 35AD

In line with the measures suggested to stimulate the telecom equipment manufacturing sector economics, it is proposed to extend Income Tax Act Section 35 AD benefits to domestic telecom equipment manufacturing companies which are complying with the PMA provisions, to encourage electronics and telecom equipment manufacturing in the country.

All rules should be for companies manufacturing the products as per PMA Notification and complying with PMA eligibility criteria.

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