GSM industry lobby group Cellular Operators Association of India (COAI) has asked the Ministry of Finance to abolish the need for PAN (Permanent Account Number) at for taking a new mobile connection.
"Many of these low-end subscribers and subscribers in the rural areas do not have a PAN and the same acts as a hindrance towards spread of service," COAI said in its Budget wish-list
The industry body has also asked the government to introduce a new section to deal with the case of deduction of tax at source by telecom operators from the discounts offered to distributors.
COAI has also sought optic fibre cables (OFC) be exempted from basic customs duty as it is a vital component of telecom infrastructure. "OFC should be classified under tariff chapter heading 85 attracting nil rate of basic customs duty," COAI said.
The industry body also requested that CENVAT credit of central excise duty be made available to towers and shelters and the earnings of distributors from distribution of telecom services should be exempted from service tax.
COAI also sought clarity on applicability of service tax in Jammu and Kashmir.