Just after Finance Minister Arun Jaitley said the economy is firmly on the path of economic revival, even as the IT heads suggested steps to boost industrial growth.
The Telecom Equipment Manufacturers Association of India (TEMA) wants the Finance Minister to grant Infrastructure status to the domestic telecom equipment manufacturing companies complying with PMA provisions to help the industry to take benefits of the incentives given to the infrastructure sector.
The association representing the local telecom product makers said to emphasize more on the R&D
Sector and to introduce 5 % cess on telcos to build a corpus for backing R&D for technology development
in telecom sector.
The group also cited to relook into the levied duties on non-ITA products which was proposed in the
Union Budget FY 2014-15 where some of the telecom products have been brought under the duty
Regime and some telecom / ICT products been exempted under ‘Others’ category at zero duty.
The products falling under this Category and are outside the scope of original ITA list, may suitably be reviewed and may be brought under the duty regime of about 25%.
Tema has also sought extension of tax sops under Section 35AD to local telecom gear makers complying with PMA norms to boost local manufacturing of electronics and telecom gear.