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(i) License fee as a percentage of Adjusted Gross Revenue (AGR) needs to be paid by the ISP. License fee needs to be paid service area wise, from the effective date of ISP service authorization.
(ii) The LF is equal to 8% of AGR, inclusive of USO Levy which is presently 5% of AGR. From Second Year of authorization, LF shall be subject to a minimum of 10% of Entry Fee of the authorized service and service area.
(iii) The definition of GR and AGR are available in the license agreement. Pr. CCAs/CCAs offices are vested with the responsibility of assessing and collecting LF from ISPs. The LF e-payment should be made through SARAS as per the schedule of payment shown below.
(iv) Schedule of payment of License Fee:

Quarter	Last Date for making Quarterly LF payments (to avoid levy of interest)
Apr-Jun Q1	115th July
July-Sep Q2	15th October
Oct –Dec Q3	15th January
Jan-Mar Q4	25th March (estimated, subject to minimum of LF payable in 3rd Qtr. as per self- assessment)

(v) Any delay in payment beyond the stipulated period will lead to levy of interest.

Interest = One Year Marginal Cost of Lending Rate (MCLR) of SBI as on beginning of financial year + 2 %.

Interest shall be compounded annually. Part of the month will be considered as full month for calculation of interest.

(e.g., if due date of LF payment for Q1, FY 2022-23 is 15th July,2022 and payment is made on 17th Jul,2022. There is a delay of 2 days and part of month is treated as full month, interest shall be charged on due amount for one full month.

If the same payment is made on 2nd Aug, there are two-part months delay (16 days in July and 2 days in Aug, so, interest shall be charged on due amount for two full months.)

SUBMISSION OF DOCUMENTS FOR ASSESSMENT

Quarterly Document Submission	Annual Document Submission (within 7 days of signing of Audit report	Mode of Submission
Affidavit as provided at Annexure - A of ISP chapter in license agreement	Audited Quarterly statement of revenue share and license fee	e-filing through SARAS portal
Statement of Revenue share and License Fee Separately for each service and service area.	Audited Annual accounts
	Reconciliation Statement between figures appears in Quarterly statements and audited annual accounts

All these documents are to be submitted online through SARAS. If documents mentioned above in good quality are uploaded on SARAS, the need to physically submit has been waived off vide order No. 37-3/2022/LFA-I/SARAS NEW dated 27.9.2022 w.e.f. Q3, FY 2022-23.

The said order is applicable for following documents:

a. Unaudited/ Audited AGR Statements (Statement of Revenue and License Fee)
b. Audited Reconciliation Statement.
c. Audited Annual Accounts.
d. Payment Proofs including GAR-6/GAR-7 and Affidavit.

Telecom Reforms with the aim to boost employment, growth, competition and consumer interests were instituted in September 2021. An overview of pre- & post- reform scenario is shared below:

	Prior to 01.10.21	w.e.f. 01.10.21
Basis of assessment	Determination of AGR as per License agreement	Determination of ApGR and AGR as per license agreement Revenue from operations other than telecom activities, activities under license from Ministry of I&B, Receipt from USO fund and items of other income as listed in Annexure VIII of license agreement excluded from AGR calculation (excludes non telecom revenue)
Interest	Interest on Delayed payment	Interest on delayed payment
Rate of Interest	MCLR + 4%	MCLR + 2%
Compounding	Monthly	Annually
Penalty	Applicable	Not Applicable
Interest on Penalty	Applicable	Not Applicable

LICENSEE SUPPORT AND FACILITATION

1. ISPs can raise grievances through SARAS which shall be responded to and redressed by the concerned CCAs within 30 days.
2. In case of dissatisfaction with the LF assessment done by any CCA, an appeal can be made through SARAS.
The appeal is to be addressed to CGCA but submitted in the concerned assessing CCA.
3. Telecom Outreach Programmes/ Telecom Meets organized by CCAs to interact with the licensees can be utilized by the ISPs to make the CCAs aware about their queries/issues/grievances for quick resolution.
4. Through TOP/TM, the CCAs will also provide updates regarding SARAS and changes in the financial conditions of license from time to time through amendments/ orders by DOT HQ.
5. Telecom Facilitation Centre (TFC) is a kind of lab (having digital equipment i.e., Computers etc.) within the CCA premises which ISPs may visit for submission of documents, payments of License Fee etc.
with the help of staff of CCA office.

6. A Know your Licensee (KYL) form (similar to KYC form in Banks) to be filled every year in the month of April

at the respective assessing CCA office

Helpdesk Email ID	Users
support.saras-dot@gov.in	Dedicated help desk for all licensees
Dedicated help desk for all licensees SARAS Helpline No. 011-23372044 (This helpdesk is operational during working hours on working days.)

Contact Details of all concerned DoT/CCA offices can be found by scanning the QR code below: