AGR considerations: Vodafone Group’s international CEO Nick Learn plans to satisfy telecom minister Ravi Shankar Prasad

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Just a few days after seeking more time from the federal government to pay its adjusted gross income (AGR) dues, a high govt of Vodafone Group is making a transfer to satisfy telecom minister Ravi Shankar Prasad, stated a information report.

Vodafone Group’s international chief Nick Learn a number of days in the past reportedly sought an appointment with Prasad on 6 March and the minister’s workplace is but to answer the telco’s chief govt officer’s (CEO) request, stated a report in Monetary Categorical.

Even because the stress on Vodafone Thought to pay the AGR dues is mounting, Learn and chairman of Vodafone Thought Kumar Mangalam Birla had not too long ago stated that they weren’t eager to infuse any extra fairness within the agency, the report stated.

 AGR concerns: Vodafone Groups global CEO Nick Read plans to meet telecom minister Ravi Shankar Prasad

Representational picture. Reuters.

In the meantime, Vodafone Thought advised the federal government that it’s unable to pay Supreme Court docket mandated Rs 53,000 crore dues and sought state support to outlive the disaster, a rivalry that was supported by business affiliation Mobile Operators’ Affiliation of India (COAI).

With the essential assembly of Digital Communications Fee (DCC) more likely to be held on Friday (6 March) to debate aid measures for the AGR-hit business, Vodafone Thought has made a robust push for setting off Rs 8,000 crore of GST credit and a three-year moratorium on cost of the remaining quantity which needs to be staggered over 15 years at a easy rate of interest of 6 %.

It has additionally sought a drastic reduce in licence charge and the fixing of a minimal worth for calls and knowledge.

In keeping with the DoT estimates, Vodafone now owes statutory dues of about Rs 53,000 crore. Final week, Vodafone Thought paid Rs 3,500 crore in two installments. Nonetheless, the telco’s personal estimates peg the dues at round Rs 23,000 crore, of which Rs 7,000 crore is the principal quantity.

Within the final week of February 2020, the telco had urged the federal government to supply 15 years time to pay the AGR dues. Aside from this, Vodafone Thought additionally demanded tax refund, a reduce in licence charges and spectrum utilization expenses (SUC), apart from the institution of a ground for tariffs amongst different measures to assist the corporate overcome the disaster.

Vodafone Thought, in a letter to the Division of Telecommunications (DoT), the finance ministry and NITI Ayog, stated {that a} items and companies tax (GST) refund of Rs 8,000 crore could be adjusted towards the telco’s AGR dues and the remaining quantity could be paid in a span of over 15 years, the report stated. Vodafone Thought additionally sought an preliminary moratorium of three years.

On 17 February, the Supreme Court had rejected Vodafone’s proposal to pay Rs 2,500 crore by the tip of the day and Rs 1,000 crore by Friday towards AGR dues, whereas additionally refusing its plea that no coercive motion be taken towards it.

On 14 February, the highest court docket had warned of contempt proceedings towards high executives of Bharti Airtel, Vodafone-Thought and different telecom corporations for failing to adjust to its directive to pay an estimated Rs 1.47 lakh crore in previous dues, and requested whether or not there was no legislation left within the nation.

On 18 February, Birla had met telecom secretary Anshu Prakash as he regarded for choices to maintain the corporate afloat. After the assembly, Birla didn’t disclose what was mentioned. As a substitute, he stated, “cannot say anything at the moment.”

In December final 12 months, Birla had stated Vodafone Thought could should shut down if there is no such thing as a aid on statutory dues. “If we are not getting anything, then I think it is the end of the story for Vodafone Idea,” Birla had stated. “It does not make sense to put good money after bad… We will shut shop.”

With PTI inputs

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