2015 (10) TMI 1461

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....08.2014, passed under sections 201(1) and 201(1A) r.w.s 250 of the Act. 2. The assessee has raised several grounds in both the appeals; however the Ld. A.R. has confined his arguments only with respect to one identical ground raised in both the appeals which is reproduced herein below for adjudication. "On the facts and circumstance of the case and in law, the Ld. CIT (A) has erred in upholding the decision of the learned TDS officer that the appellant is to be treated as an 'assessee in default' for nondeduction of tax at source under section 194J of the Act on roaming charges paid by the appellant to other telecom operators and thus, holding the appellant liable to pay tax U/s. 201(1) and interest U/s.201(1A) of the Act." ....

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....tatement of Smt. Vasanthi Ramamurthy Divisional Engineer, BSNL Coimbatore was extracted from which it could be inferred that continuous human interference is required for operating the facility provided by the service provider and hence the service rendered by the service provider would amount to technical service. Therefore, Ld. D.R stoutly contended that the roaming charges paid by the assessee company would amount to payment of fee for technical services by which the provisions of section 194J of the Act would be attracted and the assessee will be liable to deduct tax at source. 5. After hearing the both sides, we find the issue in both the appeals to be identical and squarely covered by the decision of the Chennai Bench of the Tribun....

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....SNL has explained as follows in response to Question No.23:- "Regarding roaming services as explained to question no.21. Regarding interconnectivity, initially human intervention is required for establishing the physical connectivity and also for doing the required configuration. Once it is working fine, no intervention is required. In case of any faults human intervention is required for taking necessary corrective actions." In view of the above, once configuration was made, no human intervention is required for connecting the roaming calls. The subscriber can make and receive calls, access and receive data and other service without any human intervention. Like any other machinery, whenever the system breakdown, to set right the same....