Telcos have 10 years to pay Adjusted Gross Revenue dues: Here're 10 points to understand the issue
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Telcos have 10 years to pay Adjusted Gross Revenue dues: Here’re 10 points to understand the issue

New Delhi: The Supreme Court Tuesday granted 10 years to telecom corporations akin to Vodafone Idea, Bharti Airtel and Tata Teleservices for paying the Adjusted Gross Revenue (AGR)-related dues to the Department of Telecommunications (DoT).

However the fee of the dues over the prolonged time comes with sure situations.

What is Adjusted Gross Revenue?

Telecom operators are required to pay licence price and spectrum fees within the type of income share to the Centre. The income quantity used to calculate this share is termed as Adjusted Gross Revenue.

What is the calculation level of the AGR?

As per the Department of Telecommunications (DoT), the AGR calculations ought to incorporate all revenues earned by a telecom firm. This additionally contains revenues earned from non-telecom sources akin to deposit pursuits and sale of property. However, the telecom corporations have challenged this and mentioned that it ought to embrace solely income earned by way of telecom companies.

Here are 10 factors to know the difficulty

  1. The bench headed by Justice Arun Mishra delivered its verdict on the problems, together with the time line for staggered fee of AGR-related dues amounting to about Rs 1.6 lakh crore.
     
  2. The apex court docket requested telcos to pay 10 per cent of the AGR-related dues by March 31, 2021.
     
  3. The bench held that the demand made by the DoT and the decision delivered by the highest court docket within the matter are remaining.
     
  4. The bench requested the Managing Directors (MDs) or Chief Executive Officer (CEOs) of the telcos involved to furnish endeavor or private assure inside 4 weeks for fee of dues.
     
  5. Failure to pay the instalments of the dues would incur penalty, curiosity and contempt of court docket, the bench cautioned the telecom corporations.
     
  6. While announcing the decision, the bench mentioned that until the final instalment is paid by the telcos, their financial institution ensures furnished to the DoT could be saved alive.
     
  7. Vodafone Idea and Bharti Airtel had beforehand requested the court docket for 15 years to settle their charges.
     
  8. The SC ruling signifies that the telecom corporations may have till 2031 to clear their dues, after they’ve now missed the unique January deadline.
  9. The telecom operators must pay the DoT practically 3-5% of their adjusted gross income (AGR) in utilization fees for airwaves and eight% of AGR as licence charges.
     
  10. Telcos have lengthy disputed the definition of AGR however final yr the Supreme Court upheld the DoT`s view the AGR ought to embrace all income.

The Supreme Court choice might come as an enormous respite for closely indebted Vodafone Idea and Bharti Airtel, whose enterprise have currently been hit by fierce competitors. 

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Source

AGRBharti AirtelDepartment of TelecommunicationsDoTVodafone Idea