The Internet service providers (ISP) are likely to get infrastructure
status status which will enable them to import equipment at concessional
rates of duty and a five year tax holiday. The concessions may be
granted through the Union Budget 2000, government sources said.
Currently ISPs import equipment such as ATM and frame relay switches,
hi-speed HDSL modems, remote access servers, modem banks and routers
which are deployed in their networks. Such equipment normally attract a
basic customs duty of 35 per cent, which along with countervailing
duties, add up to an average of 54.38-60.66 per cent. However, since
such hi-end ATM switches and routers are not being manufactured locally
, the concession could be extended to the industry, sources pointed out.
