DoT cuts penalty on delay

The department of telecommunications (DoT) today amended the licence conditions to reduce the rate of interest and penalty for delayed payment for all Unified Access Licencees, including national and international long-distance players and basic operators who migrated to the Unified Access Service Licence.

"Any delay in payment of dues will attract interest at a rate which will be 2 per cent above the prime lending rate of the SBI existing as on the beginning of the financial year. The interest shall be compounded monthly and a part of the month shall be reckoned as a full month for the purpose of calculation of interest," the DoT notification said.

Earlier, the rate of interest was 5 per cent above the PLB of State Bank of India.

The notification also adds that if the total amount paid as quarterly license for the four quarters of the fiscal fell short by more than 10 per cent of the payable license fee, it would attract a penalty of 50 per cent of the entire amount.

"This amount of short payment along with the penalty shall be payable within 15 days of the date of signing the audit report on the annual accounts, failing which interest shall be further charged... However, if such short payment is made good within 60 days from the last day of the financial year, no penalty shall be imposed," the notification added.

Prior to the amendment, the penalty was 150 per cent of the entire short payment amount.

"These amendments concerning interest and penalty shall be applicable only from 2005-2006, in respect of the licence fee arising for the period from April 1, 2005," the DoT added.