|The Tax Publishers2020 TaxPub(DT) 2383 (Mum-Trib)
INCOME TAX ACT, 1961
Process involved in the roaming connectivity did not involve human intervention, therefore, services did not fall within the ambit of 'technical services', and therefore, assessee was not required to deduct tax under section 194J.
Tax deductions at source - Under section 194J - Fees for technical services - Inter-connection usages (roaming) charges paid by telecom operator
Assessee telecom operator claimed deduction of inter-connection usages (roaming) charges paid by it. AO held the payment as in the nature of fee for technical services and, therefore, disallowed deduction for want of TDS under section 194J. Held: Installation/setting up/repairing/servicing/maintenance capacity augmentation required/human intervention but after completing this process mere inter-connection between operators was automatic and did not require any human intervention. Accordingly, roaming process between participating company could not be termed as technical services and, therefore, no TDS was called for under section 194J.
Relied:CIT v. Vodafone South Ltd. (2016) 290 CTR (Kar) 436 : 2016 TaxPub(DT) 3679 (Karn-HC).
FAVOUR : In assessee's favour.
A.Y. : 2007-08
INCOME TAX RULES, 1962
SUBSCRIBE FOR FULL CONTENT