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2008 (10) TMI 321 - HC - Income Tax
Fee for technical services - Payment of interconnection charges for interconnection provided through port - (a) Whether the payments made by the assessee to the MTNL/other companies for the services provided through interconnect/port/access/toll were liable for tax deduction at source in view of the provisions of section 194J of the Act? - (b) Whether the learned Income-tax Appellate Tribunal erred in holding that the payment for use of services for MTNL/other companies via the interconnect/port/access/toll by the assessee would not fall within the purview of payments as provided for under section 194J of the Act so as to be eligible for tax deduction at source ? – MTNL and other companies not providing assistance or aid, services not involving human interface, hence services are not technical services as contemplated under Explanation 2 to section 9(1)(vii) - interconnect charges/port access charges cannot be regarded as fees for technical services, hence not liable for tax deduction at source - Consequently, both the questions are answered against the Revenue and in favour of the assessees.