Adjusted Gross Revenues Case:
20th July, 2021 Economy
- 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).
- 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.
- 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.