Government Settles ₹1,553 Crore Tax Dispute Between RailTel and DoT
By MYBRANDBOOK
The Committee of Secretaries decided that the ₹1,553 crore demand on RailTel's non-telecom revenue should be withdrawn in public interest. DoT will inform the Supreme Court about this decision in its next annual AGR compliance affidavit due in April 2025.
In a significant move towards tax dispute resolution, the Indian government has settled a ₹1,553 crore corporate tax dispute between RailTel Corporation of India Ltd. and the Department of Telecom (DoT). The long-standing issue, related to license fees on non-telecom revenue, was resolved under the Government Settlement Mechanism, specifically through the Administrative Mechanism for Resolution of CPSE Disputes (AMCRD).
The dispute stemmed from DoT’s demand that RailTel pay license fees on its non-telecom earnings, a claim that was contested by the state-run telecom infrastructure provider. After a thorough review, the Committee of Secretaries ruled in favor of RailTel, deciding that the ₹1,553 crore demand should be withdrawn in public interest. This resolution marks a crucial step in ensuring fair policy implementation in the telecom sector while preventing unnecessary financial strain on public sector enterprises.
With this settlement, DoT is set to formally withdraw its demand and will inform the Supreme Court about the decision in its next Adjusted Gross Revenue (AGR) compliance affidavit, due in April 2025. The development is expected to bring much-needed relief to RailTel and could set a precedent for similar corporate tax disputes in the telecom and infrastructure sectors.
This resolution also aligns with the government’s broader efforts to improve the ease of doing business by addressing legacy tax disputes and fostering policy clarity in the telecom sector. Such initiatives could encourage investments, boost operational efficiency, and strengthen the overall digital infrastructure in India.
Based on this order, DoT had earlier withdrawn similar demands for eight other PSUs with non-access service licenses.
BREAKING NEWS
TECHNO TRENDS
Legal Battle Over IT Act Intensifies Amid Musk’s India Plans
The outcome of the legal dispute between X Corp and the Indian government c...
Wipro inks 10-year deal with Phoenix Group's ReAssure UK worth
The agreement, executed through Wipro and its 100% subsidiary,...
Centre announces that DPDP Rules nearing Finalisation by April
The government seeks to refine the rules for robust data protection, ensuri...
Home Ministry cracks down on PoS agents in digital arrest scam
Digital arrest scams are a growing cybercrime where victims are coerced or ...
E-Magazine
TECHNOTAINMENT
Hrithik Roshan to endorse RuPay as Brand Ambassador
RuPay is reportedly planning to feature Bollywood superstar Hrithik Rosha
India Today Group launches – AI Pop Stars
Staying true to our industry leadership position in using cutting-edge tech
MOVERS & SHAKERS
TelioLabs ropes in Phaniraj V A as the Group CEO
TelioLabs has announced the onboarding of Phaniraj V A as its new Group CE
Wipro Appoints Amit Kumar as Managing Partner and Global Head
Wipro Limited (NYSE: WIT, BSE: 507685, NSE: WIPRO), a leading technology s
OPEN YOUR EYES
INTERVIEWS
Alpha Max offers high end solutions in the network space to en
The vision at Alpha Max is to attain quality as the trademark and create a
Alcatel-Lucent Enterprise Carrying a 100 year legacy ahead
A good amount of R&D works and global support services are operated out of
HOT PICK
MSI Announces the availability of RTX 50 series of laptops in
MSI, the innovative computing manufacturer in gaming, creator
Nothing Phone (3a) goes on sale today, starting at Rs 19,999
The phone was launched on March 4, featuring a 50MP main, ultra-wide, and t
MAKE IN INDIA BRANDS
TVS ELECTRONICS LTD.
NETWEB TECHNOLOGIES INDIA LTD.
BEETEL TELETECH LTD.
SAMRIDDHI AUTOMATIONS PVT. LTD.
EMINENT CIO'S OF INDIA
ICONS OF INDIA
Icons Of India : Bhavish Aggarwal
Indian entrepreneur Bhavish Aggarwal is the CEO of Ola, India’s larg...
ICONS OF INDIA : VINAY SINHA
Vinay Sinha is the Managing Director of Sales for the India Mega Regio...
ICONS OF INDIA : S KRISHNAN
S Krishnan as the secretary for the electronics and information techno...
PARTNER SPEAKERS
PSU
TCIL - Telecommunications Consultants India Limited
TCIL is a government-owned engineering and consultancy company...
CERT-IN - Indian Computer Emergency Response Team
CERT-In is a national nodal agency for responding to computer security...
UIDAI - Unique Identification Authority of India
UIDAI and the Aadhaar system represent a significant milestone in Indi...
VIDEOS
Top 25 Brands
Global Indian industry
Indian Tech Talent Excelling The Tech World - Vinod Dham, Founder & Executive Managing Partner, IndoUS Venture Partners
Vinod Dham, known as the “Father of the Pentium Chip,” has left an...
Indian Tech Talent Excelling The Tech World - JAYASHREE ULLAL, President and CEO - Arista Network
Jayshree V. Ullal is a British-American billionaire businesswoman, ser...
Indian Tech Talent Excelling The Tech World - PADMASREE WARRIOR, Founder, President & CEO - Fable
Padmasree Warrior, the Founder, President, and CEO of Fable, is revolu...
ITFORUM 2025
CMO of the Year
WOMEN LEADERSHIP
IMAGE GALLERY
TRENDS IN TECHNOLOGY
MORE VIDEOS
ADVERTISEMENTS
TECHNOLOGY DISRUPTION
UNICORNS REVOLUTIONISING
of images belongs to the respective copyright holders
