New Delhi: The Supreme Court Tuesday granted 10 years to telecom firms such as Vodafone Idea, Bharti Airtel and Tata Teleservices for paying the Adjusted Gross Revenue (AGR)-related dues to the Department of Telecommunications (DoT).
However the payment of the dues over the extended time comes with certain conditions.
What is Adjusted Gross Revenue?
Telecom operators are required to pay licence fee and spectrum charges in the form of revenue share to the Centre. The revenue amount used to calculate this share is termed as Adjusted Gross Revenue.
What is the calculation point of the AGR?
As per the Department of Telecommunications (DoT), the AGR calculations should incorporate all revenues earned by a telecom company. This also includes revenues earned from non-telecom sources such as deposit interests and sale of assets. However, the telecom companies have challenged this and said that it should include only revenue earned through telecom services.
Here are 10 points to understand the issue
The Supreme Court decision may come as a big respite for heavily indebted Vodafone Idea and Bharti Airtel, whose business have lately been hit by fierce competition.
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