2022 (10) TMI 656

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....and the appeals were heard together, these are being consolidated and disposed of together for the sake of convenience. 3. One issue raised in both Assessment Years 2012-13 and 2013-14 is that the assessee is not liable to tax u/s 194H of the Act on account of discount provided by the distributors to provision of prepaid telecom products being recharge vouchers. For the sake, we are referring the facts of Assessment Year 2012-13. 4. Brief facts of the case are that the assessee company is engaged in the business of providing telecommunication services. To provide telecommunication service, it sells service products such as pre-paid vouchers, Sim-cards and E-Load etc. For selling service products, the company entered into a distributio....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....d by assessee - Assessee offered discount on pre-paid calling services to its distributors - As per agreement, at all times pre-paid SIM card recharge coupons were owned by assessee; maximum price of SIM cards/recharge coupons was decided by assessee; and PMAs had to comply with all requirements of assessee in respect of invoicing and accounts, maintenance of brand image and providing monthly sale reports and other information relating to business - Minimum performance targets for distributors were also set by assessee which reserved right to terminate agreement unilaterally - Ultimate agreement was entered into between subscribers and assessee creating legal relationship between them - Whether, on facts, relationship between assessee and i....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....d sought to distinguish the said decision. 9. Upon careful consideration, we note that the ITAT in assessee's own case has considered identical issue and held that no TDS was to be deducted in case of roaming charges u/s 194J of the Act by holding as under:- "22. To conclude, * The primary issue in the appeal was whether the roaming charges paid by the assessee to the other telecom service providers were in the nature of 'Fee for technical Services' and hence, liable for TDS under section 194J. * The issue was considered by the Supreme Court of India in the case of CIT vs. Bharti Cellular Ltd. * The Apex Court restored the issue to the AO for reconsideration after seeking the support of technical exper....