Mumbai: Vodafone Concept has referred to as on the federal government to permit it to pay adjusted gross income (AGR) dues over 15 years. The telecom firm has additionally requested for a tax refund, cuts in licence charges and spectrum utilization prices (SUC) and the institution of a flooring for tariffs amongst measures to assist stay viable.
In a letter to the Division of Telecommunications, the finance ministry and Niti Ayog, the telco, which has over 300 million subscribers, stated it wants assist from the federal government to remain in enterprise. The letter was despatched a day forward of a gathering of Digital Communications Fee (DCC) the best decision-making physique of DoT which can focus on some steps on offering reduction to pressured telcos resembling Vodafone Concept.
In its letter, the operator sought a items and providers tax (GST) refund of Rs eight,000 crore, which may be adjusted towards its AGR dues, and the choice of paying the remaining quantity in a staggered method over 15 years after an preliminary moratorium of three years.
The telco has to pay statutory dues of about Rs 57,000 crore, as per DoTs estimates, however has to this point paid solely Rs Three,500 crore. Its personal estimates peg dues at round Rs 23,000 crore, of which Rs 7,000 crore is the principal quantity. Consultants dont anticipate the cash-strapped telco to cough up even the decrease quantity.
The operator, fashioned after a merger of Vodafone India and Concept Mobile, has warned of shutting store except it will get some reduction on its AGR dues.
Vodafone Concepts letter additionally requires a discount in licence charges and SUC. Telcos yearly pay eight% of AGR as licence charges; Vodafone Concept desires it decreased to three%. The trade has been lengthy calling for a discount in SUC as effectively, which is paid at Three-5% of AGR. The telco desires it introduced all the way down to 1%.
ET has reported that the federal government is contemplating deferring licence price and SUC funds for a considerable interval to assist liberate money flows at telcos, in addition to organising a stress fund to supply loans on simple phrases. The operator additionally highlighted to the federal government flooring for tariffs will assist double the sectors income. Vodafone Concept didnt reply to ETs emailed queries.
