The Telecom Regulatory Authority of India (TRAI) on August 21, 2023, issued a notification regarding the recommendations on "License Fee and Policy Matters of DTH Services".
The following has been stated: -
•DTH operation in India is governed by the policy guidelines for obtaining a license for providing DTH broadcasting services in India. These guidelines prescribe a License Fee (LF). LF is a non-tax fee levied on a service provider against the privilege of being permitted to carry out a licensed activity. As per the provisions of the guidelines, the DTH operators are required to pay an LF, which is 8% of Adjusted Gross Revenue (AGR) on a quarterly basis to MIB.
•The salient features of the recommendations are as follows: - Gross Revenue (GR) shall comprise revenue accruing to the licensed entity by way of all operations/ activities and inclusive of all other revenue! income on account of interest, dividend, rent, profit on the sale of fixed assets, miscellaneous income, etc. without any set-off for related items of expense. The recommendations also provided certain explanations with the definition.
Adjusted Gross Revenue (AGR) is calculated by excluding GST paid to the Government from the ApGR if ApGR had included as a component of GST.
DTH Licensee should pay an annual license fee equivalent to 3% of AGR.
The Licensor should be at liberty to encash the Bank Guarantee in full or part in the event of a violation of any of the license conditions.
In the highly competitive television distribution market, urgent measures are required for the DTH sector. The quick implementation of these recommendations will help the sector and enable all-round growth.
URL : https://www.trai.gov.in/sites/default/files/Recommendation_21082023_0.pdf
The detailed notification is given in the document attached below.
[Press Release No. 76/2023]
