Web Analytics Made Easy - StatCounter
Home

India: Korea FTA to mitigate duty on communication products

November 19, 2018

The advancement in science and technology has brought people closer to one another in terms of effective communication channels. The transmission of messages over significant distances for the purpose of communication through the media of telecommunication not only reduce the distances separating the individuals but also help in cultivating the business relations between them. Communication being an indispensable facet of human life, it becomes an important responsibility of the administrating authorities to ensure efficient system of proper connecting channels.

Telecommunication in India

India has one of the largest and fastest growing telecommunication networks attributable to the large number of user interface being offered. The rapid growth in Indian telecom industry has been contributing to India’s Gross Domestic Product at large. Telecom industry in India has witnessed a phased growth with the gradual descent of the private sector in this domain. Major sectors of the Indian telecommunication industry are telephone, internet and television broadcast Industry.

Government Policies

The easier accessibility of the internet to the vast masses of the society has been possible due to raise in the levels of digitalization thus creating more demand for improved and latest telecommunication devices. The Government has been making efforts to encourage this arena within the country.

The Government has introduced the National Digital Communications Policy – 2018 with the aim to reform the existing regulatory framework into a more transparent and accountable mechanism reducing the burdens of the stakeholders without compromising the needs of the consumers.

In order to boost the export performance of India, the Government introduced the Foreign Trade Policy (2015-2020) aiming for diversification of India’s export by aiding various sectors of the economy to gain global competitiveness. In furtherance of boosting the domestic production, the Government has imposed hike in the duty for import of communication related items whereunder multiple devices would be covered under the ambit of customs duty at the rate of 20% instead of 10% effective from October 12, 2018.[1]

India-Korea FTA

The Comprehensive Economic Partnership Agreement is a free trade agreement (also referred to as “FTA”) between India and South Korea entered into with the objective of economic and trade liberalisation to allow optimal use of natural resources in accordance with the objective of sustainable development, seeking both to protect and preserve the environment. Under the terms of the FTA the import of various equipment would be duty free including communication devices. Telecom companies such as Jio would be benefited under the provisions of the said FTA as it imports major equipment from Korea.

The schemes of the mutual partnership agreements between different countries provide tax benefits to the resident entities dealing therewith.

For more information please write to us at : info@ssrana.com

For more information please contact us at : info@ssrana.com