Service tax levy on spectrum to increase tariff rates COAI The Cellular Operators Association of India (COAI) on Sunday said the proposal in Finance Bill 2016 to declare spe

The Cellular Operators Association of India (COAI) on Sunday said the proposal in Finance Bill 2016 to declare spectrum allocations as services would result in a tax burden of Rs.77,000 crore for operators and is likely to hurt consumers as they have to pay higher tariff rates if the load is passed on to them. " The service tax levy on spectrum assignment means that during auctions lined up for JuneJuly, where reserve price is around Rs.5.36 lakh crore, the industry will have to cough up minimum Rs.77,000 crore as a service tax. This is asubstantial financial burden on the industry.

Business Standard, New Delhi, 14th March 2016

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