What is AGR Filing in India?

Adjusted Gross Revenue (AGR)

AGR or Adjusted Gross Revenue refers to one variable used to calculate the license fee submitted to CCA by telecom license holders. The term AGR filing refers to the submission of AGR statements (license fee and revenue statement) to the CCA – Controller of Communication of Accounts by the telecom license holders of India. 

Why AGR filing?

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 industry's growth. 

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 has come up with another solution: Adjusted Gross Revenue. 

AGR in detail

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) have 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 a telecom license as per Section 4 of the 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.

Issues with the AGR filing

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 made it mandatory for the telecom companies to pay their AGR dues as per the prescribed deadline. 

 

Who has to file their AGR statements(AGR Dues)  in India?

Any license holder who has been granted a license under the UL (Unified License) Chapter by the Department of Telecommunication has to file AGR returns. Following are the example of the said licenses

• Unified License Virtual Network Operator (UL-VNO) License
• Unified License Internet Service Provider (ISP) License
• Unified License ACS Category B License
• National Long Distance (NLD) License
• International Long Distance (ILD) License

Then you need to submit your AGR dues. 

 

Documents Required for submission of AGR statements(AGR Dues) in India

1. Statement of Revenue
2. Audit Report
3. Books of Accounts
4. Copy of the Telecom License you have

 

Process of AGR Statements (AGR Dues) submission in India

The process of filing adjusted gross revenue telecom hinges on the calculation of the said revenue. Thus, the steps are as follows:

• Navigate to the SARAS website
• File the return
• Upload the mandatory documents
• take a printout of the said documents and the filed return
• Deposit the above to the Department of Telecommunication
• Get the receipt

 

How can we help with the filing of AGR Statements (AGR Dues)  in India?

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 simultaneously; time that's better spent on doing your telecom business. That's why you must let Registrationwala take this task off your hands. Let us file your AGR dues. 

• We will calculate your AGR dues
• We will file your return
• We will submit the documents to the DOT
• We will follow up with the DOT to deal with any issues
• And finally, we will deliver you the final report. 

Thus, if you want to file your adjusted gross revenue without having to take needlessly painful steps, contact Registrationwala.