INDIA BUSINESS WORLD - NOVEMBER 16^th - NOVEMBER 30^th - 2007

SUPREME COURT NOTICE TO CDMA BODY ON LICENCE FEE

The Supreme Court has issued notice to the Association of Unified Telecom Service Providers of India on the basis of a petition filed by the Centre challenging a TDSAT order relating to the adjusted gross revenue (AGR) for the purpose of levying licence fee. A Bench headed by Justice HK Sema sought response from the association. The petition, filed through DoT, had sought a stay on the telecom tribunal's order. Under the national telecom policy, operators have to pay 15% of revenues to telecom department as revenue share or licence fee under the AGR regime. The tribunal's ruling had excluded income from dividend and interest on savings, capital gains as well as benefits from foreign exchange from telecom companies' AGR for calculation of licence fee to the government.