Post-budget 2018 Reaction Mr. Vishal Malhotra, Tax Leader, Technology, Media & Entertainment and Telecommunications (TMT), EY India

Overall, budget is on the expected lines.  The proposal to treat foreign exchange gains/losses other than purchase of capital assets from outside India, as a revenue item, should benefit the telecom operators since presently, any foreign exchange losses on domestic procurement including purchase of spectrum is not tax deductible.  Increase in customs duty on handsets to 20 percent should give a fillip to domestic manufacturing though this may increase the cost of imported handsets.

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