Technical services denote services for special needs of Customer: SC

Anurag Singhal

Key Summary: Supreme Court held that ‘technical services’ under Section 194J read with Explanation 2 to Section 9(1)(vii) of Income Tax Act, 1961 denote services to cater to the special needs of the consumer/user, rather not a facility / service offered to all.

1. Brief facts of case

The Hon’ble Supreme Court (SC) recently pronounced its ruling in case of Kotak Securities Ltd (taxpayer) (Civil Appeal No. 3141 of 2016). In this case, taxpayer paid transaction charges to Bombay Stock Exchange (BSE) for transacting business of sale and purchase of shares.

Taxpayer’s arguments/ contentions

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