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TDSAT Says No To ISPs Taxing For Internet Services
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Taxing ISPs would 'force a change in the licence agreement without mutual consent'.
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Monday, October 15, 2012:
Previously, the Department of Telecommunication (DoT) had tried at taxing Internet service providers (ISPs) 8 per cent of their annual revenue from April 2013. However, the Telecom Disputes Settlement and Appellate Tribunal (TDSAT) has straightaway rejected it. According to The Times of India reports, the TDSAT tribunal stated, "Presumably, the government was required to consider all aspects of the matter, including the question of whether the petitioners, with regard to pure internet services vis-a-vis services rendered by UAS licencees have a level playing field. If they do not, appropriate measure may have to be taken but the petitioners could not be asked to provisionally pay based on their annual gross revenue (AGR), where the final decision is to be taken at a later stage."
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This is a latest development in the array of events after a petition was filed by the Internet Services Providers Association of India (ISPAI), a body representing the ISPs, in July last year. The ISPAI has always opposed the attempts to tax Internet and broadband services in its petition. According to the report, the ISPAI claimed that such a move would 'force a change in the licence agreement without mutual consent'.
“Taxing the Internet and broadband services in the country would invariably burden the consumers, who would then have to shell out the extra buck for using Internet services. The ISPAI sees this as discouraging, since Internet and broadband penetration isn't high in the country. The pan-India broadband subscribers base is only a little above 14 million,” according to the report.
Debashis Sarkar, EFYTIMES News Network
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