Translation of Text from One Language to Another Not a Technical Service

Cosmic Global Ltd. Vs ACIT (ITAT Chennai) Facts of the Case: Cosmic Global Ltd. (“the assessee”) was engaged in providing translation services through web, both by employing Indian and overseas translators. The assessee while making payments to the resident translators complied with the provision of section 194J of the Income-tax Act, 1961. However, the assessee did not deduct tax on payments made to non-resident translators. The case of the assessee was selected for scrutiny and notice under Section 143(2) was issued to the assessee. The Assessing Officer (AO), opined that translation se...