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Govt steps encourage new telecom companies to open their services in J&K
2/15/2010 11:17:40 PM

EARLY TIMES REPORT
JAMMU, Feb 15

With state government’s scrapping of entry tax on telecom companies’ high value equipment and communication tower material, several new cellular service providers have got encouraged by the move which paved the way for these companies to establish their ventures in the state.
The government introduced a new scheme for these telecom companies after some existing companies had obtained stay orders against levy of entry tax as also against charging of service tax by the state on a notion that the subject matter of service tax came under the jurisdiction of the centre.
In order to break the impasse, the government decided to forego entry tax which was levied on these telecom players provided they agreed to deposit an equivalent amount with the department of commercial taxes and sign an agreement with the state government to collect service tax and deposit the same with the state government. It was decided that the amount paid by them in advance was to be adjusted against the amount of service tax payable by them afterwards.
Official sources said that it was the result of these new measures that more Telecom companies including the Reliance, Vodafone and Tata had set up their telecommunication services in the state during the last over one year.
The official sources said that another major step initiated by the government was in the shape of setting up a special task force for developing skilled resources in the state. The purpose behind this scheme was to enable these skilled resources to participate in the national and global job opportunities in Information Technology (IT), IT related services, retail, tourism and other service industries. Over 5000 young professionals are to be made available by the end of the current year.
The sources said that the Task Force has been assigned the duty of developing an incisive IT policy for the state for the development of IT industry and the usage of IT to support other industries in the state.
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