DOT proposes cess on R

New Delhi, JulY 28 (UNI) The Department of Telecom (DOT) today said that it is considering to slap a two per cent cess on telecom companies on Research and Development, a move that would translate into higher phone bills for the customer.

The move, DOT says is to promote design and manufacture of mobile handsets and infrastructure systems by Indian companies. The cess on turnover of telecom service providers will help the government mop up over Rs 1,500 crore.

This move will also help grant and interest-free loans for companies which take up manufacturing in India.

Subscribers today pay Rs 12.24 as service tax and education cess on every Rs 100 of their bills. Accoring to the DOT proposal the cess money from the R and D can be used to provide Rs 25 crore in grants and up to Rs 50 crore in seven-year interest-free loans to any six Indian companies that venture into manufacture and design.

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