DoT still working on final AGR dues due to varying accounting practices

The Department of Telecom is still performing on final modified gross profits dues that service companies have to pay back as it has detected variation in accounting practices adopted by different circle places of work, in accordance to official resources.

The licence finance wing of the telecom division (DoT) on February 3 issued a letter with recommendations to all controller General of Communication Accounts to reconcile AGR dues and asked them to give 15 days time to operators for the submission of appeals and files relevant to deductions they make in the final payment, resources explained.

The letter was a stick to up to a previous notice despatched by the licence finance wing on December 4 and a stick to-up on December 13 to the circles for re-verification of debit voucher studies (DVR). “The division has been experiencing a obstacle in carrying out the revised assessments because of to different challenges relevant to DVRs. Telecom operators, including Airtel and Vodafone Plan, have challenged quite a few DVRs.

“Also, circle places of work have not adopted uniform apply in accounting. The DoT has asked them to re-confirm DVRs at the earliest in the gentle of Supreme Court judgement,” an official resource explained.

Telecom operators have been distributing two independent audited details of deduction towards interconnection utilization charges and roaming fee to the DoT. In a single established, deductions have been claimed by telecom operators on a paid foundation whilst on an accrual foundation on the other.

“DoT found that quite a few Controllers of Communication Accounts have been cherry finding the figures claimed by telecom operators in their final DVRs. In some situations, DoT recommendations regarding deduction verification issued in 2014, 2015 and 2016 have not been adopted. There have been situations wherever a single CCA has allowed a single variety of deduction and an additional has disallowed,” the resource explained.

In accordance to estimates well prepared by the DoT, Airtel owes virtually Rs 35,586 crore, including licence fee and spectrum utilization charges, to the authorities.

Vodafone Plan is staring at dues worth Rs fifty three,000 crore, which incorporates up to Rs 24,729 crore of spectrum dues and an additional Rs 28,309 crore in licence fee. Tata Teleservices owes about Rs 13,800 crore, BSNL Rs 4,989 crore and MTNL Rs 3,122 crore.

Whilst the deadline to make AGR payment finished on January 23, 2020 as for every Supreme Court order, the DoT has been adhering to up with circle places of work to confirm DVRs of ten decades starting from 2006-2007 which entail about tens of millions of entries in a quarter and then get started verification for 2017-18 and 2018-19.The DoT on December 13, 2019, gave 15 days time to submit the re-confirmed accounts but the same could not be done in absence of uniform recommendations.

“The headquarters will also require time to look at DVRs after they are submitted by the circle business office. Thereafter notice will be despatched to telecom operators for distributing appeals and files relevant to promises that are not admissible,” the resource explained. The apex court on February 14 came down greatly on the telecom division for not using steps to recover statutory dues, approximated to be about Rs 1.forty seven lakh crore, from operators including Bharti Airtel, Vodafone Plan, Tata Teleservices, among other people. Of Rs 1.forty seven lakh crore, about Rs 1.13 lakh crore is probably to be recovered, as other companies, which are liable to pay back AGR dues, have shut down their businesses.

Reliance Communications and Aircel are likely by way of insolvency proceedings. Of the whole demand raised, Bharti Airtel, Vodafone Plan and Tata Team have created section payment of about Rs ten,000 crore, Rs two,500 crore and Rs two,197 crore, respectively. The next listening to of the circumstance is outlined for March seventeen.