Supreme Court Offers Telecom Firms Right To Claim Tax Credits On Infrastructure Duties

Supreme Court Offers Telecom Firms Right To Claim Tax Credits On Infrastructure Duties

Overturns the decision of the Bombay High Court

The Supreme Court has ruled in favor of telecom companies, granting them the right to claim tax credits on duties paid for infrastructure components, including tower parts and green shelters.

This decision overturned the Bombay High Court, ruling, which classified these items as non-capital goods and denied the companies a Central Value Added Tax (CENVAT) credit for the duties paid.

It would provide significant financial relief to major operators Bharti Airtel, Vodafone, Tata Teleservices, Indus Towers and Reliance Communications, burdened with infrastructural expenses.