May 27 (Punjab Khabarnama) : Telecom companies will have to pay spectrum charges as well as Goods and Services Tax (GST). A senior officer gave this information. The Department of Telecommunications (DoT) will hold the next round of spectrum auction for eight spectrum bands for mobile phone services on June 6. The base price for the auction has been fixed at Rs 96,317 crore. The spectrum will be allotted for 20 years and successful bidders will be allowed to make payment in 20 equal annual installments in the upcoming ‘mega’ auction.
The official said telecom companies will have to pay 18 percent GST with each installment. “The GST Council may clarify the process of GST payment by companies winning the bids during the spectrum auction in its next meeting,” the official said. The clarification will lead to confusion among regional officials regarding the method of GST collection in the auction process. Will end. All available spectrum in the 800 MHz, 900 MHz, 1,800 MHz, 2,100 MHz, 2,300 MHz, 2,500 MHz, 3,300 MHz and 26 GHz bands are part of the auction. The total value of frequencies being auctioned is Rs 96,317 crore.
Rajat Mohan, executive director of accounting and consultancy firm Moore Singhi, said that under the GST law, spectrum payments fall under licensing services for the right to use other natural resources, which are taxed at 18 per cent. Moore Singhi is the Indian consulting arm of Moore Global. Mohan said, “Spectrum fee has to be paid in a phased manner over a fixed period. Thus tax payment will also vary. The Board of Directors should issue a clarification in this regard so that any litigation in this regard can be avoided.