Daily News Analysis

Adjusted Gross Revenues Case:

20th July, 2021 Economy

Context:

  • The Supreme Court has reserved orders on pleas made by telecom majors for a chance to place their grievances about arithmetical errors in the calculation of Adjusted Gross Revenue (AGR) dues before the Department of Telecom (DoT).

Background:

  • The Supreme Court in September 2020 had granted 10 years to telecom firms for paying the Adjusted Gross Revenue (AGR)-related dues to the DoT with certain conditions.
  • The SC asked telcos to pay 10 per cent of the AGR-related dues by March 31, 2021.

About AGR:

  • 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 revenue share is termed as the AGR.
  • According to the DoT, the calculations should incorporate all revenues earned by a telecom company – including from non-telecom sources such as deposit interests and sale of assets.
  • The companies, however, have been of the view that AGR should comprise the revenues generated from telecom services only and non-telecom revenues should be kept out of it.