Allowing the appeal of the assessee the Tribunal held that discount extended to pre-paid SIM distributors on transfer of pre-paid SIM cards/talk time is not liable to deduct tax at source .Tribunal also held that process of roaming does not require human intervention and cannot be considered as a technical service hence not liable to deduct tax at source . (AY. 2007 -08 to 2013-14)
Vodafone Idea Ltd. v. ACIT (2019) 179 ITD 207 (Chd) ( Trib.)
S. 194H : Deduction at source – Commission or brokerage – SIM distributors – Not liable to deduct tax at source – Roaming charges – Process of roaming does not require human intervention and cannot be considered as a technical service- Not liable to deduct tax at source .[ S. 194J ]