{"id":265543,"date":"2023-10-20T19:18:46","date_gmt":"2023-10-20T13:48:46","guid":{"rendered":"https:\/\/forumias.com\/blog\/?p=265543"},"modified":"2023-10-20T19:18:46","modified_gmt":"2023-10-20T13:48:46","slug":"why-a-supreme-court-order-on-telcos-licence-fee-tax-has-the-industry-worried","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/why-a-supreme-court-order-on-telcos-licence-fee-tax-has-the-industry-worried\/","title":{"rendered":"Why a Supreme Court order on telcos\u2019 licence fee tax has the industry worried"},"content":{"rendered":"\n<p><b>Source: <\/b><span style=\"font-weight: 400;\">The post is based on the article \u201c<\/span><b>Why a Supreme Court order on telcos\u2019 licence fee tax has the industry worried\u201d<\/b><span style=\"font-weight: 400;\"> published in<\/span><b> \u201cIndian Express\u201d on 20th October 2023<\/b><\/p>\n<h2><b>What is the News?<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">The <\/span><span style=\"font-weight: 400;\">Supreme Court has ruled that payment of entry fee as well as variable annual license fee made by telecom companies will be considered as capital expenditure and not revenue expenditure.<\/span><\/p>\n<h2><b>How do telecom companies currently pay entry fee and variable annual license fee?<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Currently, telecom companies treat license fees as a revenue expenditure.Based on this, they claim deductions for computing their tax liability.<\/span><\/p>\n<h2><b>How will this judgment impact telecom companies?<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">After the judgment, the telecom companies would have to treat license fees as a capital expenditure.This is expected to result in additional tax liabilities for telecom companies.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">However, the Supreme Court\u2019s order has not clarified whether the changes to the accounting structure will have to be made on a retrospective basis.<\/span><\/p>\n<h2><b>What are revenue and capital expenditures?<\/b><\/h2>\n<p><b>Revenue expenditures: <\/b><span style=\"font-weight: 400;\">These are the ongoing operating expenses, which are short-term expenses used to run the daily business operations.For example, salaries and wages of employees.<\/span><\/p>\n<p><b>Capital expenditures: <\/b><span style=\"font-weight: 400;\">These are typically one-time large purchases of fixed assets that will be used for revenue generation over a longer period.For example, land or building.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Source: The post is based on the article \u201cWhy a Supreme Court order on telcos\u2019 licence fee tax has the industry worried\u201d published in \u201cIndian Express\u201d on 20th October 2023 What is the News? The Supreme Court has ruled that payment of entry fee as well as variable annual license fee made by telecom companies&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/why-a-supreme-court-order-on-telcos-licence-fee-tax-has-the-industry-worried\/\">Continue reading <span class=\"screen-reader-text\">Why a Supreme Court order on telcos\u2019 licence fee tax has the industry worried<\/span><\/a><\/p>\n","protected":false},"author":10317,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1566,3127,1],"tags":[11872,10500],"class_list":["post-265543","post","type-post","status-publish","format-standard","hentry","category-daily-factly-articles","category-economy","category-uncategorized","tag-9pm-daily-factly","tag-indian-express","entry"],"jetpack_featured_media_url":"","views":{"total":41,"cached_at":1698370851,"cached_date":1698660887},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/265543","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10317"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=265543"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/265543\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=265543"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=265543"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=265543"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}