AGR or Adjusted Gross Revenue refers to one variable that is used to calculate the license fee to be submitted to CCA by telecom license holders. The term AGR filing refers to submission of AGR statements (license fee and revenue statement) to the CCA – Controller of communication of Accounts by the telecom license holders of India.
When the telecom sector started to hit its stride back in the late 90s, the government started to liberalize - made certain incentives - in the National Telecom Policy. Back then, the license fee was steep. It made telecom aspirants apprehensive about choosing a telecom domain. The new incentives were an attempt to pave the way for more telecom companies to enter the market and participate in the growth of the industry.
Those incentives came in the form of a revenue-sharing model. Previously, the telecom companies had to pay a fixed license fee depending upon their size. Now, as per the new norms, the government came up with another solution: Adjusted Gross Revenue.
According to chapter III – Financial Conditions of Part I in the schedule to the UL (VNO)Agreement. In addition to the entry fee, the annual license fee & spectrum usage charges (SUC) has to be paid as a percentage of Adjusted Gross Revenue by the license holder as per their service area.
Any license holder who has been granted telecom license as per the Section 4 of National Telegraph Act, has to submit the License fee and revenue statement (collectively known as AGR statements) to the Communication Controller of Accounts of DOT. The license fee is 8% of the adjusted gross revenue, and includes USO Levy which is currently 5% of AGR.
However, there was a dispute between the telecom companies and the government about the definition of AGR. As a result, massive AGR dues were calculated from the government's side that big telecom companies refused to pay.
The government was complacent about this issue earlier. However, it now has taken a hard-line about the AGR dues. An AGR judgement passed recently that made it mandatory for the telecom companies to pay their AGR dues as per the prescribed deadline.
Any license holder who has been granted license under UL Chapter by the Department of Telecommunication has to file AGR returns . Following are the example of the said licenses
Then you need to submit your AGR dues.
The process of filing adjusted gross revenue telecom hinges on the calculation of the said revenue. Thus, the steps are as follows:
As you've seen, the process is needlessly complicated. If you follow it, it would require you to divide your time dealing with many legal compliances at the same time; time that's better spend on doing your telecom business. That's why let registrationwala take this task off your hands. Let us file your AGR dues.
Thus, if you want to file your adjusted gross revenue without having to take needlessly painful steps, contact registrationwala.