Budget 2011: COAI for continuing tax holiday benefits in case of M&As
Cellular Operators Association of India (COAI) has demanded that tax holiday benefits in case of mergers/ amalgamations be continued.
By Agencies |
NEW DELHI: Cellular Operators Association of India ( COAI) has demanded that tax holiday benefits in case of mergers/ amalgamations be continued.
It has asked the government to alternatively bring in the effective provisions to prevent misuse instead of doing away with the provisions altogether.
It is expected that consolidation will take place in telecom business by way of mergers and demergers. In highly competitive telecom industry tax benefits like section 80IA are factored for investment decisions. In such scenario, denying the benefit of section 80IA on mergers and demergers may impact financial viability of the business.
COAI said that the government has benefitted directly or indirectly by the mergers and amalgamations that have taken place in the Industry. Inserting a sun-set clause to the provision would act as a retrograde step in which even the benefit that would have accrued to the Government would also be deprived.
It has asked the government to alternatively bring in the effective provisions to prevent misuse instead of doing away with the provisions altogether.
It is expected that consolidation will take place in telecom business by way of mergers and demergers. In highly competitive telecom industry tax benefits like section 80IA are factored for investment decisions. In such scenario, denying the benefit of section 80IA on mergers and demergers may impact financial viability of the business.
COAI said that the government has benefitted directly or indirectly by the mergers and amalgamations that have taken place in the Industry. Inserting a sun-set clause to the provision would act as a retrograde step in which even the benefit that would have accrued to the Government would also be deprived.
Start a SIP with as low as ₹500 with ET Money App!
Download
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
ADVERTISEMENT
