Case Law Details
Vodafone Idea Ltd. Vs DCIT (ITAT Hyderabad)
TDS not deductible on auto roaming charges paid by cellular service provider to other telecom operators
Whether payment made by assessee to another mobile service provider company for utilization of roaming mobile data and connectivity could not be termed as technical service as roaming process between participating entities was fully automatic and did not require any human intervention and, therefore, no TDS was deductible – Held, yes
Facts- The appellant is a company engaged in the business of providing cellular mobile telephone services. In this case, a survey u/s.133A was conducted on 13.10.2009. The assessee was requested by the AO to file details of expenditure incurred and TDS deducted under the various TDS sections. Accordingly, the assessee company filed the details of expenditure incurred and TDS deducted, and on the basis of the information filed by the assessee, the AO noticed Non-deduction of TDS on Auto Roaming Charges paid to other Telecom operators. Accordingly, orders u/s.201(1) & 201(IA) of the I.T. Act, 1961 were passed on by the AO, holding the assessee is liable for TDS u/s. 194J in respect of roaming charges for A.Y. 2004-05 to 2010-11. For the A. Y. 2010- 11 the assessee was also held liable for TDS u/s. 194H in respect of commission payments made to distribution on prepaid connections.
When the assessee preferred appeals before the CIT(A), the CIT(A) passed a combined order for all the AYs under consideration and confirmed the orders of AO. Aggrieved by the order of CIT(A), the assessee is in appeals before the ITAT.
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