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The matter is now before the Commissioner of Income Tax (Appeals). Tata Communications said it has appealed against the latest notice. Reliance Jio<\/a> didn't respond to queries.
The department is of the view that Indian telecom companies should deduct taxes at source from IUC payments made to foreign telecom operators under Section 195 of the IT Act<\/a>.
If they don't, assessee companies are liable to pay the tax deducted at source (TDS<\/a>) amount and resulting interest under Section 201 of the IT Act.
Interconnection charges have been a bone of contention for the telecom sector for several years now. IUC is the cost that a mobile operator pays to another operator for carrying or terminating a call.
\"The department is of the view that fees on technical usage of the facility of foreign telecom operator, i.e. interconnection usage charges, are applicable as there is human intervention,\" an expert said. The companies contend that the connections are made automatically, hence there are no connecting charges and therefore no case for TDS, he said.
Officials close to the development said that the notices have been sent for FY20. They ask \"why the firms should not be treated as an assessee in default under Section 201(1) for failure to deduct tax at source under Section 195 of the Act in respect of interconnection charges paid by them to various foreign telecom operators,\" said one of them.
Section 195 deals with deduction of tax at source on fees for technical services and royalty to a foreign company.
A Tata Communications spokesperson said, \"Compliance with laws in the jurisdictions in which we operate is of utmost importance to Tata Communications. We follow stringent standards of corporate governance in every jurisdiction in which we operate, across all regions. The company has appealed on the order, and as it is still in process, we cannot comment on the matter.\"
According to sources, IUC paid by an assessee to foreign telecom operators were in the nature of fees for technical services under Section 9(1)(vii) and, alternatively, royalty for the use of process under Section 9(1)(vi), on which tax was deductible under section 195 of the Act. The income from IUC is deemed to arise in India<\/a> in the case of foreign telecom operators, said a person familiar with the matter.
\"This amounts to be a default under Section 201(1) for failure to withhold tax under Section 195 of the Act from the impugned payments,\" the person said. \"Hence notices were issued for failure to deduct tax at source under section 195 of the Act in respect of interconnection charges paid by the appellant to various foreign telecom operators.\"
The move is being challenged and there needs to be some clarity on what aspect of service attracts the charge, said a senior industry<\/a> official.
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读到
问题是现在专员之前所得税(上诉)。塔塔通信说,已经提起上诉的最新通知。依赖Jio没有对此事作出回应。
部门认为,印度电信公司应该扣除税收来源IUC支付国外电信运营商在部分195的它的行为。
如果他们不,assessee公司可能支付税收扣除源(TDS)数量和产生的利息在201条款的行为。
互连费用一直是一个争论的焦点对电信行业好几年了。IUC是移动运营商的成本支付到另一个操作符或终止一个电话。
“部门认为,技术的使用费用国外电信运营商的设备,即互连使用费用,适用于有人工干预,”一位专家说。公司认为是自动的连接,因此没有连接费用,因此没有理由TDS,他说。
接近发展的官员表示FY20通知已经发送。他们问“为什么公司不应被视为一个assessee在默认为失败第201节(1)扣除税收在源部分195年的法案的互连费用由他们支付各种国外电信运营商,“说其中的一个。
第195节从源处理扣除税款费用技术服务和皇室一家外国公司。
塔塔通信发言人说,“遵守法律的司法管辖区我们塔塔通信是至关重要的。我们遵循严格的标准的公司治理在每个管辖我们操作,在所有地区。公司已经呼吁在秩序,因为它仍在过程中,我们不能就此事置评。”
据消息人士透露,IUC由一个assessee支付外国电信运营商在技术服务费用的性质部分9(1)(七),另外,皇室下使用过程的部分9 (1)(vi),在扣除税是195条款的行为。的收入IUC出现印度在国外电信运营商的情况下,一名知情人士表示。
”这是一个默认根据第201节(1)未能在195条款的行为征收预提税打击支付,”这位人士说。“因此在失败中扣除税在源部分195年的法案的互连费用由上诉人支付各种外国电信运营商。”
此举受到挑战,需要有一些明确什么方面的服务吸引了,一位说行业官员。
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