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Last Updated : Feb 17, 2020 03:15 PM IST | Source: Moneycontrol.com

Vodafone seeks adjustment of its AGR dues against Rs 7,000 cr owed by tax dept: Report

In the absence of relaxation of timeline for repayment of dues, the National Company Law Tribunal is the only option left with the telecom company.

 
 
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Telecom player Vodafone Idea has sought an adjustment of the Rs 7,000 crore owed to it by the tax department against the adjusted gross revenue (AGR) dues it owes to the government, sources told CNBC-TV18.

As per the report, the company has written to the Department of Telecommunication (DoT) and the Income Tax (I-T) Department in connection with the matter.

Moneycontrol could not independently verify the report.

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The report noted that Vodafone Idea's tax refund is related to a change in the Income Tax Act in 2012. The Supreme Court had then ruled that the Vodafone-Hutchison deal was not taxable in India. The refund due to the company from the tax department is for multiple assessment years dating back to 2004-05.

Sources also told CNBC-TV18 that the company said it can furnish an additional Rs 2,500 crore via short-term loans and cash reserves.

The report noted that the telco is of the view that the total repayment of Rs 9,500 crore is possible after this proposed tax adjustment.

The report added that the Aditya Birla Group and Vodafone will not infuse further capital into the company. In the absence of a relaxation on the timeline for the repayment of dues, the National Company Law Tribunal (NCLT) is the only option left with the telecom company.

Earlier on February 17, the apex court refused to accept Vodafone's proposal to pay Rs 2,500 crore in dues by February 17, and another Rs 1,000 crore by February 21 and that no coercive action be taken against it, news agency PTI reported.

Meanwhile, as per a report by The Economic Times, the telecom companies have questioned the amount of dues sought by the DoT. The companies, the report notes, have calculated their AGR dues to be almost half of what has been estimated by the telecom department.

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First Published on Feb 17, 2020 03:15 pm
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