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License Fee & Spectrum Charges : License Fee introduction

License Fee Collection:

The Office of Controller of Communication Accounts (CCA) Dehradun is responsible for collection of license fee under section IV of Indian Telegraph Act, 1985 for providing various telecom services in the UP(W) Service Area with effect from January, 2004 from all commercial licensees of Cellular, Basic, Unified Access Service, NLD, ILD, Commercial VSAT, PMRTS services, Internet Service Providers (without Telephony), Internet Service Providers (with telephony), New Licensees of Internet service and licenses of Captive VSAT, CMRTS, Radio links, Microwave links and OFC links.

          

The terms and conditions of the license prescribe the Gross Revenue, Adjusted Gross Revenue, Percentage levy of license fee payable etc. The licensee is permitted deductions from Gross Revenue and Adjusted Gross Revenue (AGR) is arrived, on the basis of which service provider is required to pay the license fee at the prescribed percentage (i.e. 8%) basis and deposit it on self assessment basis, quarterly.

           

Gross Revenue(GR): The Gross Revenue shall be inclusive of installation charges, late fees, sale proceeds of handsets, revenue on account of interest, dividend, value added services, supplementary services, access of interconnection charges, roaming charges, revenue from permissible sharing of infrastructure and any other miscellaneous revenue, without any set-off for related item of expense etc.

Adjusted Gross Revenue(AGR):  For the purpose of arriving at the AGR, following shall be excluded from the Gross Revenue to arrive at the AGR:

1.          PSTN/PLMN/GMPCS related call charges actually paid to other eligible/entitled telecommunication service providers within India.

2.         Roaming revenues actually passed on to other eligible/entitled telecommunication service providers.

3.         Service Tax on provision of service and Sales Tax actually paid to the Government if gross revenue had included as component of Sales Tax and Service Tax.    

 

The CCA, Uttarakhand Circle assess the license fee of TSPs/ISPs of UP(W) LSA on quarterly  basis with following other responsibility  

 

1.         Collection of license Fee from all service providers viz UASL/CMTS/Basic/UL/ISP & ISP-  ITs

2.         Carry out the verification of deduction claimed by the service providers holding UASL, CMTS,   Basic, UL, and allow/disallow claims for deduction based on such verification.

3.         Assessment of License Fee payable with respect to decentralized licenses.

4.         Being custodian of Financial Bank Guarantees & performance Bank Grantees as prescribed  under the license, their periodical review for validity and amount. It serves as securitization of telecom dues to the Government.

5.         Encashment of Bank Guarantee if licensing conditions are not fulfilled by the TSPs. 

6.         Submission of periodical reports of Revenue collection to DoT(HQ)& updating of GR, AGR, Revenue collection in LF/WPF Software.

 In addition to above, the Office of CCA is to ensure that dues of Government are correctly assessed with respect to license fee and deposited in the government account within the prescribed time period.

 In furtherance to above, work relating to collection of penalties levied for subscribers non verifications & non-compliance of instruction of EMF radiation norms on Telecom service providers by TERM Cell and reconciliation thereafter with TERM cell has been entrusted to CCA office.

License Fee Payment:-

An annual License fee as a percentage of Adjusted Gross Revenue (AGR) shall be paid by the Licensee service-area wise, for each authorized service from the effective date of the respective authorization. The License fee shall be 8% of the AGR. Provided that from Second Year of the effective date of respective authorization, the License fee shall be subject to a minimum of 10% of the Entry Fee of the respective authorized service and service area.

 Due Dates for payment of License Fee:-

Period

For the Quarter ending period

Due Dates

Last date of submission of documents in support of deduction claim

I Quarter

30 June

15 July

15 September

II Quarter

30September

15October

15 December

III Quarter

31 December

15January

15 March

IV Quarter Provisional

31 March Provisional

25March

15 June

IV Quarter Actual

 

15 April

 

                

  Holiday will not result in date of payment being extended beyond the 15