The trade physique estimates that firms throughout sectors would face Rs 2.5 lakh crore as funds for the final 10 years, which may rise additional, as soon as all firms impacted by the judgment are recognized and counted for earlier years. In a letter to Prasad dated November 27, the trade physique has urged the minister to step in to keep away from the unprecedented monetary disaster throughout sectors, and to make sure business continuity and investments.
“The implementation of the Hon’ble Supreme Court Judgement in 90 days will lead to huge financial crisis in many companies having telecom licenses, even though their revenues are mainly from non-telecom businesses/activities,” stated Assocham secretary normal Deepak Sood, within the letter.
“We urge the government to intervene to avoid the unprecedented situation across sectors as a consequence of the recent judgment,” he stated within the letter, seen by ET. “We seek your urgent intervention to resolve this crisis in the industry to ensure the continuity of business, investment in the sector and to meet the vision of ‘Digital lndia’.”
The apex court docket in its order of October 24 had stated that every one income belonging to a telecom licensee — not simply income from telecom providers — ought to be accounted as gross income, for calculating AGR. License holders pay 8% of AGR as license payment to the federal government.
While the DoT has sought authorized opinion on the difficulty of wider implication, it has protectively requested all license holders to pay up license payment on their very own calculations of AGR, and pay it inside the stipulated time-frame. Some of the affected firms, like PGCIL that holds ISP and INLD licences, have determined towards paying any extra demand that the DoT might increase in future, past what the ability transmission firm has already paid.
Other firms might strategy their respective ministries to hunt authorities intervention within the matter, individuals conscious of the difficulty within the authorities stated.
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