Self-assessment of dues by Airtel, VIL, Tatas Rs 82,300 crore short of DoT’s AGR math

NEW DELHI: Bharti Airtel, Vodafone Idea and Tata Group‘s self-assessment of dues to the federal government are a whopping Rs 82,300 crore in need of what the telecom division calculated after the Supreme Court’s ruling on AGR. The apex court docket on Wednesday lashed out on the telcos for attempting to reopen the dues they owed to the federal government by way of the self-assessment train.

The Department of Telecommunications (DoT), based on its personal submission to the apex court docket searching for aid in fee tenure, has put dues of the three corporations at Rs 1.19 lakh crore.

The dues estimated by DoT for Bharti Airtel and Telnor was pegged at Rs 43,980 crore, whereas that of Vodafone Idea was Rs 58,254 crore, and Tata Group of corporations at Rs 16,798 crore outlined underneath ‘complete demand of DoT incorporating CAG and particular audit as on October 2019’.

Against this, Bharti Group has calculated its dues at Rs 13,004 crore, Vodafone Idea at Rs 21,533 crore and Tata Group of corporations at Rs 2,197 crore.

In all, AGR dues calculated by the federal government for 16 entities add as much as Rs 1.69 lakh crore, whereas telcos’ self-assessment place their dues at a mere Rs 37,176 crore.

These dues arose after the Supreme Court, in October final yr, upheld the federal government’s place on together with income from non-core companies in calculating the annual AGR of telecom corporations, a share of which is paid as licence and spectrum price to the exchequer.

The Supreme Court on Wednesday pulled up the Centre and telecom corporations for doing self-assessment or reassessment of the Adjusted Gross Revenue (AGR) dues mounted by the apex court docket in its verdict given on October 24 final yr.

A bench of Justice Arun Mishra, Justice S A Nazeer and Justice M R Shah refused to take up the Centre’s plea for permitting telecom corporations to pay AGR dues in 20 years, saying the applying will probably be taken up after two weeks.

“The time frame of 20 years is unreasonable. The telecom companies have to clear all dues mentioned in the judgement,” the bench stated, including it had settled all AGR dues after listening to telecom corporations and the federal government then had fought tooth and nail for pursuits and penalties.

The bench stated it’ll summon the secretary and desk officer of DoT who permitted telecom corporations to do self-assessment of AGR dues.

“Exercise of self-assessment of AGR dues by telecom companies cannot be permitted even in wildest dreams,” it stated.

The court docket stated severe fraud was being dedicated by telecom corporations by asserting to do self-assessment of AGR dues and that its judgment was closing and to be adopted in letter and spirit.

Beleaguered Vodafone Idea has pegged its complete dues to the federal government following a Supreme Court order at Rs 21,533 crore. Earlier this week, Vodafone Idea paid one other tranche of Rs 3,354 crore to the federal government, thereby taking its complete funds to Rs 6,854 crore. The firm stated this was equal to full principal quantity as per its self-assessment.

Bharti Airtel has paid Rs 13,004 crore to the federal government in two installments. It had additionally deposited an extra Rs 5,000 crore “as an ad-hoc fee (topic to subsequent refund/adjustment) to cowl variations, if any, arising from the reconciliation train with the DoT.

Tata Teleservices has paid Rs 2,197 crore in AGR dues, and thereafter an extra Rs 2,000 crore to cowl reconciliation variations.

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