TDSAT begins proceedings to determine AGR
Last Updated: Friday, November 4, 2011 - 18:47
New Delhi: The telecom tribunal TDSAT on Friday started the proceedings on the dispute between telecom operators and DoT over the issue of what constitutes components of adjusted gross revenue for calculating licence fee and issued notice to the government in this regard.
The Telecom Disputes Settlement and Appellate (TDSAT) issued notice to the Department of Telecom (DoT).
There are differences over what constitutes AGR on which annual licence fee be charged. Service providers say that income from telecom services only (excluding other income like interest on savings, dividends, bundling of handsets and others) should not be considered for the purpose. On the other hand, the DoT takes total income of the firm as an AGR.
TDSAT is hearing the matter pm the direction of the Supreme Court which on October 11 set aside Tribunal's order and asked it to decide the issue of AGR and to "pass fresh orders in accordance with law".
The TDSAT on August 30, 2007, had ruled that income from dividend, interest income on savings, capital gains, management consultancy and training as well as gains from foreign exchange should not be part of AGR for paying revenue share or license fee to the government.
This was challenged by the government before the Supreme Court.
However, counsel representing various telecom operators informed the tribunal that they would take a decision later as they were also seeing alternative ways also.
Meanwhile, the TDSAT bench headed by Justice S B Sinha has said that if the government raises invoices against them (operators) on the basis of the recent Supreme Court order, they can also challenge it before the tribunal.
The tribunal has posted the matter on December 15 for the next hearing in this.
First Published: Friday, November 4, 2011 - 18:47