Taxation Issues in Telecom Sector

Abstract

Tax litigations with complete disregard to the explicit provisions of Section 194H as given in the Income Tax Act is subjecting telecom operators to undue tax demands year after year, resulting in huge litigation costs. Telecommunication has played a significant role to narrow down the rural-urban digital divide to some extent supported by the socioeconomic development of India. This growth of telecom sector has further assisted the transparency of governance with the introduction of e-governance in India.