DoT issues notices to pvt telcos for under reporting revenue

Tatas, Idea have been served notices by the the DoT which has given 21 days time to response to the notices, along with notices to three other telcos

PTI | February 1, 2012



The Telecom Ministry on Tuesday issued show-cause notices to five private operators, including Bharti Airtel, Vodafone and RCom, for under reporting revenues, as per a special audit report, for assessment years starting from 2006 to 2008.

Tatas and Idea Cellular have also been served notices by the the Department of Telecom (DoT) which has given 21 days time to response to the notices.

The department has raised a demand of about Rs 1,000 crore from all the telecom companies, sources said, adding that after completion of the given period these five operators would be given an opportunity for personal hearing by Telecom Minister Kapil Sibal.

However, it could not be confirmed that how much demand has been raised from these operators individually. According to one of the estimates made by the DoT, the demand from these operators varied between Rs 60 crore to Rs 300 crore.

Telecom regulator Trai in 2009 had asked the DoT to conduct a special audit of financial accounts of these five telecom companies for the 2006-08 period observing that operators were under-reporting their revenues to avoid payment of licence fee to the government through revenue share.

The move was to check operators' scope to arbitrage, which is shifting revenue from higher licence fee to the lower side. The UASL (basic and mobile) telephony has a licence fee of 6-10 per cent where as NLD, ILD, ISP and Internet Protocol has six per cent.

Trai had noticed that some of operators were showing more revenue in segment that carried lower licence fee.

The special audit was for those companies which have multiple licences - Unified Access Service Licence (UASL), National Long Distance (NLD), International Lonag Distance (ILD) and Internet Service Provider (ISP). All the five companies mentioned above have all these es.
 

Comments

 

Other News

The Constitution cannot be altered: Justice Abhay Oka

Justice Abhay Oka, who retired from the Supreme Court in May 2025, has said that the Constitution of India cannot be altered. Explaining the landmark Kesavananda Bharati judgment (1973) on the basic structure of the Constitution, he said, “This is one judgment that has saved democracy in India.&rdq

How the flora and fauna evolved in the Indian subcontinent

Mammals of India  By A.J.T. Johnsingh and P.O. Nameer HarperCollins India in association with Bombay Natural History Society  

India`s renewable race is moving beyond megawatts

When Shell bought Sprng Energy in 2022, India`s renewable energy market appeared to offer precisely what global energy majors were seeking: scale, growth and a place in one of the world`s largest energy transitions. Four years later, Shell is selling the same business to Aditya Birla Group for an enterpris

Nepal Floods: India keeps close watch on the situation

India`s central government has been keeping a close watch on the situation arising out of the flash flood in Nepal on Wednesday. Union home minister Amit Shah spoke with the chief ministers of Bihar and Uttar Pradesh, the two states that share the border with Nepal, regarding the disaster

UPI completes 10 years of digital payments revolution

The Unified Payments Interface (UPI), launched on August 25, 2016 by the National Payments Corporation of India (NPCI) under the regulatory oversight of the Reserve Bank of India (RBI), has completed 10 years of transforming digital payments in India. UPI has emerged as the backbone of India’s digi

Here’s an I.D.E.A. for career growth and success

Success in today’s professional organisation is no longer solely determined by academic qualifications, technical expertise or years of experience. While these attributes do matter, organisations increasingly value individuals who demonstrate the right mindset and behavioural qualities. The ability

Upcoming Conferences



-->

Archives

Current Issue

Opinion

Facebook Twitter Google Plus Linkedin Subscribe Newsletter

Twitter