With the just few days left for Finance Minister Arun Jaitley to present the Union Budget 2016, Telecom Equipment Manufacturers Association of India (TEMA) expects the budget to focus on infrastructure status to domestic telecom equipment manufacturers.
TEMA says the grant of infrastructure status to the domestic telecom equipment manufacturing companies complying with PMA provisions will help the industry to take benefits of the incentives given to the infrastructure sector.
The association said R&D and IPR creation are critical factors for strengthening the manufacturing sector in the country. In order to encourage more R&D in the sector, they have proposed to introduce 5 % cess on user of telecom services (service providers) to create a corpus for supporting R&D for technology development in telecom sector.
It said non-ITA products should be suitably reviewed and should be brought under the duty regime of about 25%.
In line with the measures suggested to stimulate the telecom equipment manufacturing sector economics, it is proposed to extend Income Tax Act Section 35 AD benefits to domestic telecom equipment manufacturing companies which are complying with the PMA provisions. This is to encourage electronics & telecom equipment manufacturing in the country.
TEMA said all rules should be for companies manufacturing the products as per PMA Notification & complying with PMA eligibility criteria.
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