Airtel, Idea, Reliance Jio and Vodafone served notices over GST


  • Airtel, Idea, Reliance Jio and Vodafone served notices over GST
22-03-2018 | Pratidin Bureau. |

According to reports, telecom operators Bharti Airtel, Idea Cellular, Reliance Jio Infocomm and Vodafone India have been served notices for exaggerated credit claims under the Good and Services Tax (GST).

The notices have been issued by the indirect tax department to all major telecom companies along with tower companies for claiming additional transitional credit for capital expenditure incurred under the GST.

It may be mentioned that the companies also received notices for adding education, Krishi Kalyan and Swachch Bharat cessto their transitional credit balances. The department suspects that the companies have claimed credit in cases where they are not eligible to do so.

Companies can seek tax credit on capital expenditure and use them to offset their GST liability under the present rule, however, there were no such provisions earlier. The department has alleged that telecom companies have claimed credit even on capital expenditure partially incurred after the introduction of GST.

According to an official, some companies had completed 90% of the work but the same was not reflected on their books. But 100% of the capital expenditure came on their books after July 01 as they can claim credit.

Detailed questionnaires have been mailed to Airtel, Idea Cellular, Reliance Jio Infocomm and Vodafone India regarding the issue.

Tags : Airtel Idea Reliance Jio Vodafone Notice GST


loading...
Comments.
Leave a reply.