Clarification on availability of input-tax credit on ducts and manholes used in network of optical fiber cables (OFCs) in terms of section 17(5) of the RGST Act, 2017

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....tax credit on ducts and manholes used in network of optical fiber cables (OFCs) in terms of section 17(5) of the RGST Act, 2017--Regarding. Representations have been received from Cellular Operators Association of India (COAI) submitting that input-tax credit (ITC) is being denied by some tax authorities on ducts and manholes used in network of optical fiber cables (OFCs) on the ground that the s....

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....s (OFCs) for providing telecommunication services is barred in terms of clauses (c) and (d) of sub-section (5) of section 17 of the RGST Act, read with Explanation to section 17 of the RGST Act ? 1. Sub-section (5) to section 17 of the RGST Act provides that input-tax credit shall not be available, inter alia, in respect of the following : (i) works contract services when supplied for construct....

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....nd pipelines laid outside the factory premises. 3. Ducts and manholes are basic components for the optical fiber cable (OFC) network used in providing telecommunication services. The OFC network is generally laid with the use of PVC ducts/sheaths in which OFCs are housed and service/connectivity manholes, which serve as nodes of the network, and are necessary for not only laying of optical fiber ....