Govt may ease taxes on telecom companies: Report

Govt may ease taxes on telecom companies: Report
The Department of Telecom (DoT) may ask the Telecom Regulatory Authority of India (Trai) to redefine adjusted gross revenue (AGR) for telecom companies, on the basis of which government levies taxes on them, according to a Business Standard report.

The report said that companies may save Rs 3,000 crore in taxes if government decides to exclude non-telecom revenues in calculation of AGR. Telecom companies currently pay levy not only on telecom revenues but also on some non-telecom revenues. They also pay 8 per cent of their AGR as licence fee, an average five per cent as spectrum usage charges and a microwave charge of less than one per cent.

The decision to redefine the AGR comes on demand from various telcos and industry bodies including the Cellular Operators Association of India (COAI), the Association of Unified Telecom Service Providers in India (Auspi).

Read more about: department of telecom, trai, auspi, coai, agr
Story first published: Tuesday, November 5, 2013, 9:10 [IST]
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