Case Law Details
AT&T Global Network Services (India) Pvt. Ltd. Vs DCIT (ITAT Delhi)
Conclusion: TDS on payment towards lease line charge was liable to deduct under section 194J as against under section 194I as lease line services were standard automatic services which were availed by any telecom service provider for the transmission of data and was not under any exclusive arrangement.
Held: Assessee-company was engaged in the business of providing Telecommunication services under International Long Distance (ILD), National Long Distance (NLD), and Internet Service Provider (ISP) Licenses. Assessee had withheld tax on lease line charges paid to other telecom operators u/s 194J. The claim of the assessee was that the lease line services were standard automatic services which were availed by any telecom service provider for the transmission of data and was not under any exclusive arrangement. AO was of the view that the tax on such expenditure was to be withheld u/s 194I. It was held that the similar issue of non-deduction of tax on lease line expenses arose before the Tribunal in ITA No.6385/Del/2019 for Assessment Year 2015-16 and for assessment year 2014-15 also. Following the same, there was no requirement to deduct tax at source u/s 194I.
FULL TEXT OF THE ORDER OF ITAT DELHI
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