'It's a double whammy': Telcos want govt to waive service tax on AGR

Service tax demand can go up to Rs 20,000 crore

With notices being sent to telecom companies (telcos) on the service tax they have to pay on their adjusted gross revenues (AGR), the Cellular Operators Association of India (COAI) has written to the government, asking for a law doing away with the tax on the dues the firms have to stump up in compliance with a Supreme Court (SC) order.

Or else, the COAI said, the telecom industry will suffer incalculable losses. 

The tax demands are as high as Rs 20,000 crore, with an industry source putting it at 15 per cent of the AGR dues.

“It’s a double whammy.