TDS can be collected on mobile roaming charges, rules Madras HC

IN a significant judgment likely to have a pan-India impact, a division bench of Madras High Court has held that tax deduction at source (TDS) is applicable on the roaming charges for mobile communication paid by one service provider to another since the charges qualified as fees for 'technical services' under section 194 J of the Income Tax Act.

- R SIVAKUMAR

The order was passed by a division bench of Justices R Mahadevan and Mohammed Shaffiq during a special sitting on Friday or an appeal filed by the come Tax department challenging the orders of the I-T Appellate Tribunal (ITAT) in Chennai in a case involving 13 Dishnet Wireless Limited. The bench set aside ITAT's order, which failed to consider roaming charges as fees paid for technical services.