TDSAT excludes dividend, interest income
In a boost to telecom players, sector tribunal TDSAT ruled that income from dividend, interest income on savings, capital gains as well as gains from foreign exchange should not be part of Adjusted Gross Revenue for paying revenue share or license...
By PTI |
NEW DELHI: In a boost to telecom players, sector tribunal TDSAT ruled that income from dividend, interest income on savings, capital gains as well as gains from foreign exchange should not be part of Adjusted Gross Revenue for paying revenue share or license fee to government.
The Tribunal, however, included income earned from telecom handsets given to subscribers bundled with their services in the AGR for the purpose of licence fee.
A bench comprising TDSAT chairman Justice Arun Kumar and member D P Sehgal passed the judgement on a petition filed by Association of Unified Telecom Service Providers of India (AUSPI) challenging regulator TRAI's recommendations to include such incomes in AGR.
Under the interest income head, TDSAT categorised such income into three parts and held that income earned on investment of savings made by an operator after meeting liabilities including liability on account of share of government in the gross revenue should be excluded from AGR.
While interest earned on deposits from customers, especially using International call facilities, and deposits from customers for the sake of getting concessions are included in the AGR booty.
Accepting TRAI's recommendations, the Tribunal said: "We are of the view that income earned on deposits under these heads should form part of AGR as this income is directly related to telecom service which is a licensed activity."
TDSAT rejected telecom companies' contention that this was a short term liability and operators had to return this amount to consumers after disconnection.
The Tribunal, however, included income earned from telecom handsets given to subscribers bundled with their services in the AGR for the purpose of licence fee.
A bench comprising TDSAT chairman Justice Arun Kumar and member D P Sehgal passed the judgement on a petition filed by Association of Unified Telecom Service Providers of India (AUSPI) challenging regulator TRAI's recommendations to include such incomes in AGR.
Under the interest income head, TDSAT categorised such income into three parts and held that income earned on investment of savings made by an operator after meeting liabilities including liability on account of share of government in the gross revenue should be excluded from AGR.
While interest earned on deposits from customers, especially using International call facilities, and deposits from customers for the sake of getting concessions are included in the AGR booty.
Accepting TRAI's recommendations, the Tribunal said: "We are of the view that income earned on deposits under these heads should form part of AGR as this income is directly related to telecom service which is a licensed activity."
ADVERTISEMENT
TDSAT rejected telecom companies' contention that this was a short term liability and operators had to return this amount to consumers after disconnection.
Start a SIP with as low as ₹500 with ET Money App!
Download
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
ADVERTISEMENT
