No Section 194J TDS on IUC charges paid by Telecom Operators

DCIT (TDS) Vs Vodafone India Ltd. (ITAT Mumbai) The issue under consideration is whether interconnection usages charges (IUC) is in the nature of fees for technical services and whether the assessee is liable for TDS under section 194J of Income Tax Act, 1961? ITAT states that the interconnection usages charges paid by the appellant to other telecom companies are not covered under ‘fee for technical service’ and such payments are out of the purview of TDS provision of 194J of the Act. There is no manual or human intervention involved in the process of interconnection charges. In fa...