ROAMING PAID BY TELCOs NOT SUBJECT TO TAX: TRIBUNAL

Roaming charges paid by one service provider to another are not liable for deduction of tax at
source, according to a recent ruling by Income-tax Appellate Tribunal (ITAT), Mumbai. The
Income Tax Appellate Tribunal, Mumbai in an order on December 22 on an appeal field by
Vodafone Essar, held that the service provider's role is limited to collecting the roaming charges
from its subscriber and pass it on to the other service provider whose facility is used by the
subscriber. Therefore, the service provider is not required to deduct tax.