SC Judgment on Capex and Opex

To ensure the effective and robust implementation of the Supreme Court's judgment, Section 35ABB of the IT Act must be refined to harmonize telecom accounting practices with conventional approaches.

On October 16, 2023, the Supreme Court of India delivered a landmark judgment that is poised to trigger a transformative shift in the accounting practices of telecom companies across the nation. This pivotal ruling fundamentally restricts telecom operators from categorizing their annual obligations for license fee payments as operating expenses, thereby…