New Delhi: DOT has changed licensing norms to rationalize interest rates for delays in payment of license fees, a step that is expected to ease the financial burden on the telecommunications sector and promote the ease of doing business.
The current department will charge a 2 percent fee above the one-year marginal cost of the Indonesian Bank’s Loan (MCLR) interest rate to delay payment of license fees or other legal contributions and interest will be compounded every year.
Previously, telecommunications companies were asked to pay interest of 4 percent above the SBI MCLR one year and flowers were exacerbated every month.
“Every delay of payment of license fees or paid other contributions under the license outside the specified period will attract the level of 2 percent above the SBI MCLR which exists at the beginning of the financial year (i.e.
April) with respect to the cost of licenses or other contributions relating to the financial year, “said the amendment.
The Telecom (DOT) department has also removed the license clause where telcos was subject to a penalty equivalent to 50 percent of the brief payment they made for license fees.
The sentence is applied if a brief payment is more than 10 percent of the license fee paid.
Amendments have come into force since October 1 enforcing the government’s seat and asking telecommunications operators to pay RS 1.47 lakh crore law contributions.
Basic contributions around 26 percent while components 74 percent of total demand accumulated due to interest in this number, penalty and interest in penalties.
Telecom Body Coai Industry said this step would alleviate financial pressure in this sector and promote the ease of doing business.
“We appreciate the steps to rationalize interest rates on payment of delayed license fees (LF) and other contributions under the license, removal of penalties and interest in penalties.
We welcome this step to reduce financial stress and promote the ease of doing business in the telecommunications sector,” said Director Coai General SP Kochhar.