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Bharti Airtel and Vodafone Idea Might Get Relief in Dues as Govt Plans for Easing of Taxes – TelecomTALK

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Highlights
  • The overall burden on trade is Rs 1.three lakh crore
  • Vodafone Thought and Bharti Airtel collectively owe Rs 89,000 crore
  • The brand new dues are due to the AGR resolution by Supreme Courtroom

Proper now, the most important problem that the telecom operators within the trade are dealing with proper now’s the difficulty of AGR (Adjusted Gross Income) which has come up after the Supreme Courtroom verdict on the matter. As per the brand new ruling of Supreme Courtroom on the AGR definition, the 2 of the telecom operators are required to repay greater than Rs 89,000 crore in dues to the federal government. Nonetheless, the already financially grim scenario of the telcos just isn’t making it any simpler for the businesses. Because of this the telecom operators are caught in a really powerful spot with drained out steadiness sheets, heavy money owed and the brand new dues on their shoulders. However, as per a brand new ET report, the federal government could be exploring some choices to supply reduction to those telecom operators. The tactic of reduction may embody an prolonged cost deadline, permitting the telcos to defer these hefty funds by a considerable time.

Bharti Airtel and Vodafone Idea Might Get Relief in Dues as Govt Plans for Easing of Taxes - TelecomTALK vodafone, relief, plans, might, easing, bharti, airtel

Cost Timeline to Prolong to 20 Years

As per this new report, the federal government is extending the cost interval for these dues of the telecom operators to 20 years. The centre may also be an preliminary moratorium — based mostly on the web current worth (NPV), which is a technique used to ease the burden on the closely indebted firms. Not solely this, however the authorities might additionally think about some reduction on the taxation to make it simpler for these telecom operators to repay their dues on this time interval. Individually, the centre might speak to the sector regulator, the Telecom Regulatory Authority of India (Trai) which oversees the telecom trade to set some ground pricing within the sector to make sure viability for these telecom firms. A authorities official quoted, mentioned that the federal government stays eager on guaranteeing the viability of the telecom trade and is preserving all of the choices on the desk.

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The panel which met yesterday for the primary time to debate on the difficulty is headed by cupboard secretary Rajiv Gauba and likewise consists of key stakeholders within the trade. As per the folks current through the dialogue, there’s a realisation that exterior makes an attempt must be made to maintain the telecom trade aggressive.

New Choice on AGR Will increase Woes for Telcos

It’s noteworthy that the Apex Courtroom dominated on the matter of AGR definition to incorporate the non-core companies as nicely. Because of this the dues from the telecom operators which embody spectrum utilization fees, and license charges that are calculated based mostly on the AGR will probably be extra because the AGR will now embody income from the non-core companies of the telecom operators as nicely. This new resolution has put stress on the telecom operators who will now must pay Rs 1.three lakh crore in dues to the federal government in whole.

Ground Pricing Prone to Assist Telcos

Out of all of the telecom firms, Vodafone Thought and Bharti Airtel have taken probably the most hit because the two firms have been in operation longer and the matter of AGR has been ongoing within the authorized area since greater than a decade. The 2 firms collectively must pay Rs 89,000 crore in dues. If the NPV technique is tailored, then the longer term funds will probably be eased for the telecom operators and discounted at an agreed price. The committee has additionally remarked that the taxes on the dues additionally should be eased. On prime of this, the ground pricing within the sector would imply that the telecom operators would have extra viability.

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Reported By:

Arpit Sharma

Reporter

Bharti Airtel and Vodafone Idea Might Get Relief in Dues as Govt Plans for Easing of Taxes - TelecomTALK vodafone, relief, plans, might, easing, bharti, airtel

Arpit spends his day intently following the telecom and tech trade. A music connoisseur and an evening owl, he additionally takes a deep curiosity within the Indian expertise start-up scene and spends remainder of his time spilling poetry and tales on paper.

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