Don’t delay AGR dues, clear doubts by December 13: Government

NEW DELHI: The government has warned all telecom licence holders towards any delays within the fee of dues associated to adjusted gross revenue (AGR) and has requested them to hunt clarifications by December 13 on any doubts that won’t have been lined within the latest Supreme Court judgment.

The Department of Telecommunications (DoT) requested all telecom licence holders, together with non-telecom firms, to hurry up the method of self-assessment of AGR-based dues and their funds in a letter written final week. Some 15 telcos must pay over Rs 1.47 lakh crore, which may rise additional, the federal government has mentioned. Industry estimates peg the cash owed by nontelecom firms, which maintain practically 3,500 licences, at round Rs 2.28 lakh crore.

The high court docket had given firms three months to make the funds in its October 24 order.

“Any issues should be pointed out in the comprehensive representation to be submitted, but in no case the self-assessment and payment of dues are to be delayed,” mentioned the December 5 DoT letter, which ET has seen.

“The comprehensive representation shall be submitted within a week (latest by December 13),” the letter mentioned.

The Supreme Court determined in favour of the federal government’s competition that every one income, together with that from non-core sources, can be counted in calculating AGR. Licence holders should pay about 8% of AGR to the DoT as charges. Telcos additionally pay about 3-4% of AGR as spectrum utilization expenses (SUC).

Soon after the ruling, the DoT had requested all telecom licence holders to self-assess and submit their dues to the federal government throughout the stipulated three months.

The authorities lately made it clear that the AGR order might be relevant to all telecom licensees, which incorporates firms equivalent to GAIL, RailTel, Power Grid and others. These firms, which can have minor telecom companies, might should pay dues based mostly on their total income with retrospective impact. Non-telcos, together with web service suppliers (ISPs), have urged the intervention of the Prime Minister’s Office (PMO) to resolve this problem.

“In this regard, it is pointed out that over a course of time, multiple representations related to LF (licence fee) assessments were received from various licensees for consideration by the department,” the DoT mentioned within the letter. “After the judgment, most of these have been settled and for any remaining issues, a comprehensive representation needs to be submitted to the department.”

Further, the DoT has sought complete year-wise and circlewise representations, however not on points determined by the court docket order.

Last month, Bharti Airtel, dealing with dues of over Rs 35,500 crore, Vodafone Idea (over Rs 53,000 crore) and Tata Teleservices (practically Rs 14,000 crore) filed for a restricted overview of the judgment. While Airtel has sought a overview of the curiosity, penalty and curiosity on penalty, Vodafone Idea’s petition has additional urged the Supreme Court to have a “relook at the amounts attributed to notional revenue”. Later, Bharti Airtel appealed to the Supreme Court to permit the telco and the federal government to agree on the quantum of AGRbased dues that must be paid and the timeline for funds.

To put together for the funds, Bharti Airtel’s board accepted a proposal for the corporate to lift as much as $Four billion, out of which it plans to lift $Three billion initially by means of a mix of fairness and debt.

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