Give should not levy Swachh Bharat Cess on Telcos: COAI


GSM industry body COAI has asked the government that Swachh Bharat Cess (SBC) should not be levied on telecommunication services as there are multiple other levies applicable on the industry.

The government had imposed SBC at a rate of 0.5 per cent on provision of all taxable services with effect from November 15. Further, it was clarified that the credit of SBC cannot be availed and the cess cannot be paid by utilising credit of any other duty or tax.

In its budget recommendations, Cellular Operators Association of India (COAI) said with levy of SBC, effective rate of service tax has further increased to 14.5 per cent and this would increase the overall cost of telecommunication services for customers.

“Given the fact that there are multiple other levies such as licence fee, applicable on telecommunication industry, SBC should not be levied on telecommunication services,” it said.


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