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| The Tax Publishers2019 TaxPub(DT) 1707 (Ahd-Trib) INCOME TAX ACT, 1961
Section 194C Section 194J
Process involved in roaming connectivity does not involve human intervention and thus related payment did not fall within the ambit of fee for technical services liable for tax deduction under section 194J.
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Tax deduction at source - Under section 194C or 194J - Roaming charges paid by telecom operator to other telecom company -
Assessee, a telecom operator paid roaming charges to other telecom company net of TDS under section 194C. AO held the payment to be in the nature of 'fee for technical services (FTS) and, therefore, liable for TDS under section 194J. Held: It is common knowledge that when one of the subscribers in assessee's circle travels to jurisdiction of another circle, the calls get connected automatically without any human intervention and it is for this, roaming charges are paid by assessee to visiting operator for providing this service. There was no manual or human intervention involved in the process and, therefore, roaming charges paid by assessee to other telecom operators were not in the nature of fees for technical serices.
Relied:CIT v. Vodafone South Ltd., vide (2016) 290 CTR 436 (Kar) : 2016 TaxPub(DT) 3679 (Karn-HC) and Vodafone East Limited (Formerly Known As Vodafone Essar East Limited) v. Addl. CIT & & Ors. (2015) 43 ITR (Trib) 551 (Kol) : 2015 TaxPub(DT) 3654 (Kol-Trib).
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2008-09, 2009-10
IN THE ITAT, AHMEDABAD BENCH
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