Direct-to-home (DTH) operators can breathe easy as the Telecom Disputes Settlement and Appellate Tribunal (TDSAT) has once again adjourned the direct-to-home (DTH) licence fee case.
The premise behind this decision is that, the Telecom Disputes Settlement and Appellate Tribunal (TDSAT) wants to first decide on a similar case relating to actual gross revenue with regard to telecom.
The tribunal will hear the matter once it reaches a decision on the telecom AGR case, which is expected to come up for hearing this month.
Meanwhile, the government will have to file detailed replies in the case following which the DTH operators will have an opportunity to file rejoinders.
Irked by the Ministry of Information and Broadcasting’s (MIB) licence fee demand, the six DTH operators challenged the matter in the TDSAT on the ground that the matter is sub judice as the case is pending in the Supreme Court.
The MIB had on 24 March asked DTH operators to pay licence fee demand of Rs 2,066 crore based on AGR. It had raised the licence fee demand based on Clause 3.1.1 of DTH licence.
What is Clause 3.1.1 of DTH license
According to the clause 3.1.1 of DTH license, gross revenue for this purpose would be the gross inflow of cash, receivable or other consideration arising in the course of ordinary activities of the Direct to Home (DTH) enterprise from rendering or services and from the use by other of the enterprise resources yielding rent, interest, dividend, royalties, commissions etc. Gross Revenue shall, therefore, be calculated without deduction of taxes and agency commission, on the basis of billing rates, not of discounts to advertisers. Barter advertising contracts shall also included in the gross revenues on the basis of relevant billing rates.
In the case of licensee providing or receiving goods and services from other companies that are owned or controlled by the owners of the licensee, all such transactions shall be valued at normal commercial rates and included in the profit and loss accounts of the licensee to calculate its gross revenue.
It’s is important to note that Tata Sky, one of the petitioners in the case, had recently paid Rs 383 crore (Rs 3.83 billion) as licence fee to the government even though the matter is sub judice.
Source: http://cablequest.org/news/legal-news/item/5440-cq-tdsat-adjourn-dth-license-fee-case-till-decision-on-telecom-agr-case-to-come.html
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