No technical service without a human face is liable to TDS: Delhi High Court
LENDING a refreshingly new dimension to the concept of 'technical service' in the Income Tax Act, the Delhi High Court has ruled that a service is not 'technical' without the human element. Thus loses the Revenue the million-dollar cases of tax deduction at source on payments made for interconnect / port access charges by private telecom companies to PSU telecom companies such as MTNL/BSNL. Since the I-T Act has not given clear-cut definition of 'technical service', the onus necessarily fell on the judiciary to infuse clarity to the concept for the taxation purposes.
We bring you this very interesting judgement today. See Breaking News