IndianMascot
Core Member
Bharat Business Channel, Videocon’s direct-to-home (DTH) company, is legally apprehending against the government the extent of its licence fee liabilities and will have to shell out Rs. 1.37 billion if they loose it.
Under the terms of the licence agreement, DTH companies are required to pay an annual fee to the Information and Broadcasting ministry equivalent to 10 per cent of their gross revenues. The levy of this licence fee has been subject to dispute between the I&B and certain pay DTH operators. The pay DTH operators are awaiting the verdict of the Supreme Court. In case the apex court rules in favour of the government, these DTH firms will have to pay additional amount towards licence fee for their prior years of operation.
These pay DTH operators had moved the Telecom Disputes Settlement Appellate Tribunal (TDSAT), claiming that their licence fee should be restricted to revenue arising out of their “licensed activities”; it cannot extend to any income that may otherwise be earned by the pay DTH operators, such as interest and rental income, among others.
The government filed appeals against the TDSAT’s orders passed in 2008, which are currently pending adjudication in the Supreme Court. Since the commencement of operations, Videocon d2h (the brand name under which Bharat Business Channel offers its DTH service) has paid licence fees to the I&B, calculated on adjusted gross revenue earned from licensed DTH operations only.
Since the commencement of operations, Videocon d2h (the brand name under which Bharat Business Channel offers its DTH service) has paid licence fees to the I&B, calculated on adjusted gross revenue earned from licensed DTH operations only.
