Will Vodafone Stop Services In India Due To Tax Error? This Is What Vodafone Said..

The errors could cost the struggling telco Rs 25,000 crore which would force its closure.

Vodafone Idea protested against the Supreme Court for not allowing the telco to make corrections to adjusted gross revenue (AGR) calculation errors committed by the Department Of Telecommunication (DoT).

Vodafone-Idea One Step Closer To Closure

The errors could cost the struggling telco Rs 25,000 crore which would force its closure.

In its petition, the company said that it was willing to comply with payment of AGR dues.

But if arithmetical mistakes are not allowed to be corrected then it will be forced into bankruptcy.

Jobs And Customer Interests At Stake

This could adversely affect not just 280 million (27.33 crore) of its subscribers but also cost the jobs of its 20,000 direct and indirect employees, 100,000 distributors and retailers.

The govt also has a stake in the telco’s survival as this would ensure that it makes “not just license fee/spectrum usage charges, but also payment of instalments for auction of spectrum.”

In a heartfelt plea, the telco said that it is a “travesty of justice” and :inconceivable” that it is being kept from raising questions on the calculations and its mistakes along with “inadvertent additions” made by the DoT.

What Were The Calculation Mistakes?

This would cost the cash-strapped firm Rs 25,000 crore (Rs 5,932 crore of principal plus interest, penalty and interest on penalty.)

The calculation errors in contention are double counting by the DoT and the failure of inclusion of dues already paid.

The company’s own calculations put the AGR dues at Rs 21,533 crore, far lesser than the Rs 58,254 crore figure arrived at by the telecom department.

The court said that telcos will have to pay dues as per DoT’s calculation, and not as per their self-assessment.

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