DoT exempts non-telecom income for calculation of levies on telcos

DoT exempts non-telecom income for calculation of levies on telcos

The federal government on Monday amended the telecom licence norms to scale back the tax burden on telecom operators by exempting all non-telecom revenues, revenue from dividends, curiosity, property sale and hire, amongst others, for calculation of levies like licence charges and spectrum utilization fees.

The previous definition of adjusted gross income (AGR) upheld by the Supreme Court docket had led to a burden of round Rs 1.47 lakh crore on working telecom service suppliers, together with Bharti Airtel and Vodafone Thought, and pushed the sector right into a deep monetary disaster.

The exempted sources of income earned by telecom operators shall be deducted from the gross income of telecom operators to calculate relevant adjusted gross income (ApGR), as per amendments revealed by the Division of Telecom (DoT) on Monday.

Thereafter, already exempted classes beneath previous guidelines like roaming revenues, interconnection fees and items and companies tax income shall be deducted to reach on the remaining AGR on which the federal government calculates its share of income.

The opposite sources of telecom operators incomes that shall be exempted from gross income to calculate ApGR embody receipts from USO fund, revenues from actions beneath a licence issued by the Ministry of Info and Broadcasting, features from international trade charges fluctuations, insurance coverage claims, dangerous money owed recovered and extra provisions written again.

(Solely the headline and film of this report might have been reworked by the Enterprise Commonplace employees; the remainder of the content material is auto-generated from a syndicated feed.)

Pricey Reader,

Enterprise Commonplace has at all times strived arduous to offer up-to-date data and commentary on developments which are of curiosity to you and have wider political and financial implications for the nation and the world. Your encouragement and fixed suggestions on the way to enhance our providing have solely made our resolve and dedication to those beliefs stronger. Even throughout these troublesome occasions arising out of Covid-19, we proceed to stay dedicated to retaining you knowledgeable and up to date with credible information, authoritative views and incisive commentary on topical problems with relevance.

We, nevertheless, have a request.

As we battle the financial influence of the pandemic, we’d like your assist much more, in order that we will proceed to give you extra high quality content material. Our subscription mannequin has seen an encouraging response from a lot of you, who’ve subscribed to our on-line content material. Extra subscription to our on-line content material can solely assist us obtain the targets of providing you even higher and extra related content material. We imagine in free, honest and credible journalism. Your assist by extra subscriptions may also help us practise the journalism to which we’re dedicated.

Help high quality journalism and subscribe to Enterprise Commonplace.

Digital Editor

Leave a Reply