Spectrum Trading service tax allows telecom companies to claim CENVAT credit. The opening of 11 new Customs, Excise and Service Tax Appellate Tribunal (CESTAT) benches is a welcome initiative to resolve over 1.3 lakh tax dispute cases pending in various courts. Further, the decision to abolish 13 different cesses under different ministries is a positive step, although the proposed Krishi Kalyan cess of 0.5 percent levied on all taxable services with effect from June 1 (after enactment of the Finance Bill, 2016) could impact the prepaid business of the operators. Enabling provisions for availment of CENVAT credit of the said cess are also yet to be introduced.
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