Call Centre TDS Under Section 194C, Not 194J: Bombay HC in Vodafone Case

CIT (TDS)-2 Vs Vodafone Essar Ltd (Bombay High Court)

Bombay High Court has dismissed an appeal filed by the Income Tax Department against Vodafone Essar Ltd. (now Vodafone Idea) concerning the appropriate section for Tax Deduction at Source (TDS) on payments made for call centre services during the Assessment Year 2008-09. The core issue was whether these payments should attract TDS under Section 194J (applicable to fees for professional or technical services) or Section 194C (applicable to payments for work contracts) of the Income Tax Act, 1961.