Govt checks for tax implications in BSNL-MTNL service agreement

After Mahanagar Telephone Nigam (MTNL) on Wednesday announced that its board has approved the proposal for a service agreement with Bharat Sanchar Nigam (BSNL) for a period of 10 years, sources said the department of telecommunications (DoT) is looking at any tax implication possibility before giving its nod to the deal.

The pact can be revoked earlier than 10 years by giving a notice of six months or extended by mutual consent between the parties, the company said in an exchange filing.