1. This Tariff is subject to the Society’s General Conditions Applicable to Tariffs and Licenses.
2. A+ Category Cites shall includes Metro Cites of Delhi, Mumbai, Kolkata, Chennai
3. City Category classification shall be the same as per government norms existing for the time being in force as amended from time to time.
4. Gross Revenue shall have the same defined in Phase II Tender Document dated 21st September 2005 as modified from time to time (Gross Revenue will be similar to as declared to the Government of India (GOI) for revenue sharing)
5. Free Air time of 240 seconds per day of public support announcements with regards obtaining license for play of music from its FM stations.
6. The Minimum Annual Royalty / License Fee per Radio Station per City as Specified in Clause 2 B shall be paid in advance irrespective of whether Clause 2A or Clause 2B is applicable to the Licensee.
7. All Royalties are exclusive of all VAT/taxes/levies

The License Fee / Royalty to be paid by the Radio Broadcaster (Licensee) for per Radio Station per City shall be the Percentage of Gross Revenue payable as per Sub-Clause “A” below or the Minimum Annual Royalty / License Fee as per Sub-Clause “B” below whichever is higher.

(A) Royalty rates as of percentage of gross revenue

The royalty rate varies from 3% to 10% and is proportional to the percentage of musical works being broadcast by the radio station from the repertoire of the society

(B) The Minimum annual royalty

Notwithstanding anything contained in Clause A the Licensee shall pay the Minimum Annual Royalty / License Fee per Radio Station per City as applicable irrespective of the Gross Revenue Percentage to the percentage of music usage

Illustration
For calculation of Total Annual Royalty/License fee for a radio station in a city following illustration can be taken into consideration:
For a Station belonging to Category A+:

1. Minimum annual royalty/license fee=Rs.17,00,000.00
2. Gross revenue of station as declared to GOI =Rs.3,00,00,000.00
3. Music usage (percentage slab) = 51% to 60%
4. Applicable Rate of gross revenue = 6%
5. License fee based on gross revenue = 3,00,00,000.00 * 6%= Rs.18,00,000.00

Total Annual Licensee Fee (either minimum annual license fee (1) or license fee based on gross revenue (5) which ever is greater) = Rs.18,00,000.00

Difference of License fees based on gross revenue subject to minimum annual royalty/license fee (if excess) payable = Rs.1,00,000.00
Any overflow of royalty calculated as per 2(A) will be due after the recovery of the annual minimum royalty as specified in 2(B).
In similar way Total Annual Royalty/License fee for each radio station belonging to other city category can be calculated.

It is clarified that this Tariff concerns Radio Broadcast only and does not cover Network or Re-Broadcast.

• This Tariff replaces and supersedes all previous tariffs and comes into force from 1st April 2008 and applies to all royalties falling due on or after 1st April, 2008.

• "Non-Compliant Licensees who seek to regularize past infringements / violations / breach of Society’s rights and licenses (including non-compliance with agreements, usage without license, vexatious litigation, etc), a penalty of 30% over the existing tariff shall be applied at the discretion of Society, where as compliant licensees will be charged license fees at a rate discounted at 5% at the discretion of the Society".

• There will be an upward revision by 10% in the minimum annual royalty every year.