Section 35ABB Expenditure for obtaining licence to operate Telecommunication Services

SUBSCRIBE FOR FULL CONTENT


The Tax Publishers [1][35ABB. Expenditure for obtaining licence to operate Telecommunication Services. (1) In respect of any expenditure, being in the nature of capital expenditure, incurred for acquiring any right to operate telecommunication services [2][either before the commencement of the business to operate telecommunication services or thereafter at any time during any previous year] and for which payment has actually been made to obtain a licence, there shall, subject to and in accordance with the provisions of this section, be allowed for each of the relevant previous years, a deduction equal to the appropriate fraction of the amount of such expenditure. Explanation : For the purposes of this section, [3][(i) relevant previous years means, (A) in a case where the licence fee is actually paid before the commencement of the business to operate telecommunication services, the previous years beginning with the previous year in which such business commenced; (B) in any other case, the previous years beginning with the previous year in which the licence fee is actually paid, and the subsequent previous year or years during which the licence, for which the fee is paid, shall be in force;] (ii) appropriate fraction means the fraction the numerator of which is one and the denominator of which is the total number of the relevant previous years; (iii) payment has actually been made means the actual payment of expenditure irrespective of the previous year in which the liability for the expenditure was incurred according to the method of accounting regularly employed by the assessee. SUBSCRIBE FOR FULL CONTENT

The Tax Publishers

[1][35ABB. Expenditure for obtaining licence to operate Telecommunication Services.

(1) In respect of any expenditure, being in the nature of capital expenditure, incurred for acquiring any right to operate telecommunication services [2][either before the commencement of the business to operate telecommunication services or thereafter at any time during any previous year] and for which payment has actually been made to obtain a licence, there shall, subject to and in accordance with the provisions of this section, be allowed for each of the relevant previous years, a deduction equal to the appropriate fraction of the amount of such expenditure.

Explanation : For the purposes of this section,

[3][(i) relevant previous years means,

(A) in a case where the licence fee is actually paid before the commencement of the business to operate telecommunication services, the previous years beginning with the previous year in which such business commenced;

(B) in any other case, the previous years beginning with the previous year in which the licence fee is actually paid,

and the subsequent previous year or years during which the licence, for which the fee is paid, shall be in force;]

(ii) appropriate fraction means the fraction the numerator of which is one and the denominator of which is the total number of the relevant previous years;

(iii) payment has actually been made means the actual payment of expenditure irrespective of the previous year in which the liability for the expenditure was incurred according to the method of accounting regularly employed by the assessee.