Latest Expert Exchange Queries

GST Demo Service software link: https://ims.go2customer.com
Username: demouser Password: demopass
Get your inventory and invoicing software GST Ready from Binarysoft info@binarysoft.com
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
 
 
 
 
Popular Search: VAT RATES :: Central Excise rule to resale the machines to a new company :: ACCOUNTING STANDARD :: cpt :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: empanelment :: articles on VAT and GST in India :: TAX RATES - GOODS TAXABLE @ 4% :: TDS :: ARTICLES ON INPUT TAX CREDIT IN VAT :: due date for vat payment :: form 3cd :: list of goods taxed at 4% :: VAT Audit :: ACCOUNTING STANDARDS
 
 
News Headlines »
 Have you missed the due date of filing your Tax Returns?
 What you should know about income tax refunds
 Income tax scrutiny to remain limited despite surge in returns filed
 Regarding Filing of online return for first quarter of 2017-18 extension upto 01-09-2017
 Deadline to file returns extended to 28 August for biz with transitional
 GST input tax credit form
  How to rectify income tax returns
 Govt extends tax exemption for industry in North East, hilly states
 Should you file revised Income Tax returns; find out here
 Tax Deducted at Source (TDS) in Goods & Services Tax (GST)
 10 companies that blamed GST for soft June quarter

Pvt telecos not liable to pay I-T on transit charges, rules HC
November, 03rd 2008

Private cellular operators would not be liable to pay income tax on the fees paid by them to state-owned telecom companies for routing thecalls of their subscribers, as was the practice before the direct connectivity regime, the Delhi High Court has ruled.

Telecom companies used to pay transit charge to MTNL and BSNL for providing interconnection access for carrying their customers' calls to users of other networks, which was prevalent till mid-2007.

The Court over-ruled the contention of the Income Tax Department that the facilities provided to cellular companies comes within the ambit of technical services, which is taxable under Income Tax Act.

A bench comprising Justice B D Ahmed and Rajiv Shakdher held that the service does not come within the ambit of technical service, as there is no human element involved in the whole process and it is done by the machines.

"The facilities provided by MTNL/other companies for interconnection/port access is one which is provided automatically by machines. It is independently provided by the use of technology and that too sophisticated technology, but that does not mean that MTNL/other companies, which provide such facilities are rendering any technical service under the Income Tax Act," the bench said.

"The expression 'technical service' would have reference to only technical service rendered by a human. It would not include any service provided by machines or robots," it said.

The government had contended that private telecom service providers were liable to tax deduction at source when they made payment in respect of the interconnect access charges, as the charges paid by them are fees for technical services.

The telecom companies, on the other hand, had contended that fee paid for such facilities did not come within the ambit of technical services and until and unless there was an element of human interface, the facility of interconnection access could not be regarded as a technical service.

"The entire process of making a call and switching the call from one network to the other is done automatically by machines without the provision of any service by human being. Therefore, the facility cannot be regarded as a technical services," the companies had said.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Internet Marketing Website Marketing Internet Promotion Internet Marketing India Website Marketing India Internet Promotion India Internet Marketing Consultancy Website Marketing Consulta

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions