Case Law Details
DCIT Vs M/s. Vodafone West Ltd. (ITAT Ahmedabad)
Roaming Charges
Roaming means an arrangement whereby a subscriber of cellular phone uses cellular services outside the home network. Thus, the subscriber who is not ‘roaming’, gets services from his home operator, while a subscriber who is ‘roaming’ will get services from both, the host operator and the home operator. The host operator, of course, charges the home operator for providing telecom services to the subscriber of the later and vice-versa. Based on the usage, the host operator would invoice the home operator, which the home operator would recover from his own subscriber.
Roaming services are provided by telecom operators are in the nature of use of standard facilities, which do not require any human interface. Further, since the roaming charges are not paid for rendering managerial, technical or consultancy services, said services cannot be construed as fees for technical series as defined under provisions of section 194J of the Act. Therefore, the assessee is not required to deduct tax at source on such roaming charges.
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