Overview of AGR-Return Filing

Adjusted Gross Revenue (AGR) is a tax imposed on telecom operators based on two key components: a basic charge for usage and a licensing fee for providing telecom services in the country. The submission of these statements by telecom operators to the Controller of Communication of Accounts (CCA) is known as AGR-Return filing. Any telecom license holder operating under Section 4 of the National Telegraph Act must file AGR statements with the CCA under the Department of Telecommunications.

Conflict with AGR-Filing

The Indian telecom sector was liberalized in 1994 under the National Telecom Policy, issuing licenses on a fixed fee basis. In 1999, the government introduced a revenue-sharing model, requiring telecom operators to share a portion of their Adjusted Gross Revenue (which includes annual license fees and spectrum usage charges) with the government.

However, there was a dispute over the definition of AGR. The Department of Telecommunications (DoT) argued that AGR should include revenue from both telecom and non-telecom activities, whereas telecom operators contended that only telecom-related revenue should be considered. In 2019, the Supreme Court ruled in favor of a broader AGR definition, including non-telecom revenues. Due to significant outstanding dues, telecom operators filed a review petition in 2021, and the court subsequently rationalized AGR, excluding non-telecom revenue on a prospective basis.

Entities Required to File AGR Statements

The following entities must file AGR statements in India:

1.       UL VNO License - Unified License Virtual Network Operator

2.       UL ISP License - Unified License Internet Service Provider License

3.       UL ACS - Unified License ACS Category B

4.       NLD License - National Long Distance License

5.       ILD License - International Long Distance License

Components of Adjusted Gross Revenue

1.     Entry Fee

 This is a one-time payment made by each telecom license holder to initiate the licensing process. The fee is capped at a maximum of 15 crores rupees per company.

2.     Annual License Fee

 License holders must pay an annual fee as a percentage of AGR. For the first year, it is 8% of AGR, inclusive of the 5% USO levy. From the second year, the annual fee is at least 10% of the entry fee based on the     authorized service area.

3.     Spectrum Usage Charges (SUC)

 Telecom companies pay Spectrum Usage Charges based on various bandwidths, ranging from 600 MHz to 26 GHz. SUC is calculated using the weighted average derived from the sum product of spectrum holdings and   applicable SUC, divided by the total spectrum holdings.

Documents Required for AGR-Return Filing

1.       Authorization letter for the representative

2.       Certificate of Incorporation

3.       Copy of the Telecom License

4.       Audited Statement of Revenue

5.       Audit Report of the company

6.       Copy of Books of Accounts

Process of Filing AGR Return

Step 1: Visit the SARAS Portal

The applicant must access the SARAS website, a government platform for managing telecom licenses. Through this portal, telecom operators can file AGR returns, bank guarantees, and deduction claims.

Step 2: Enter AGR Return Details

The applicant must enter AGR-related data on the portal, ensuring compliance with the latest Department of Telecommunications guidelines and notifications.

Step 3: Upload Supporting Documents

The applicant needs to upload supporting documents that verify the data provided. Files should be uploaded in PDF format, with Excel sheets in .xls format.

Step 4: Print AGR Return Form

A printout of the AGR return form and supporting documents should be kept for reference, in case of any objections or queries from the department.

Step 5: Final Review and Submission

The applicant must thoroughly review the form before submitting it to the Department of Telecommunications for verification by the Controller of Communication of Accounts officials.

Step 6: Receipt Generation

Once the return is submitted through the SARAS portal, a receipt is generated. This receipt serves as proof of timely AGR filing.

Fastzeal Support for AGR-Return Filing

1.       Accurate calculation of AGR dues

2.       Error-free return filing by experienced professionals

3.       Compilation and submission of required documents

4.       Regular follow-ups with the Department of Telecommunications

5.       Providing a receipt as proof of successful AGR filing