Legistlative stupidity regarding VoIP in India

For all the liberalization of the Indian economy, bewildering efforts like this are still the rage amongst some regulatory agencies in India.  Of course, taxation is the central focus:

Illegal Web calls by BPOs face axe- The Economic Times

According to official sources, foreign players such as Skype, in addition to disturbing the level-playing field for bonafide licensees, were also causing great revenue loss to the government as they did not pay the 12% service tax and 6% revenue share on internet telephony. Sources said DoT was keen to implement this move on security grounds too. Foreign service providers could be a “serious security threat as they did not come under any Indian regulator and policy framework,” they added.

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