POLITICAL ECONOMY

Vodafone Idea Makes Headway In AGR Payment

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Vodafone Idea 16 March paid what it claimed is the remainder of the principal it owes the government in unpaid adjusted gross revenue (AGR) dues, based on a self-assessment of its liabilities.

In a stock exchange filing, the operator said it paid INR33.54 billion (US$451.5 million) to the Department of Telecommunications (DoT), stating the amount, together with previous payments, is the balance of the principal towards its AGR liability.

Last week, the operator claimed it owed INR215 billion including a principal of INR68.5 billion for the period from fiscal 2006/2007 to fiscal 2018/19 and interest up to February 2020.

The DoT ordered the operator to pay INR530 billion following a Supreme Court ruling over the definition of AGR.

Vodafon Idea paid an initial INR35 billion by 20 February. It subsequently appealed to India’s government to allow it more time to pay the dues.

The court is scheduled to make a decision tomorrow on operators’ AGR payment terms.

Meanwhile, the government is looking at establishing a high-level committee to work out relief measures to reduce operators’ tax burden to ensure the sector remains competitive with three major mobile players, The Economic Times reported.-Mobile World Live

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