Inductotherm (India) Private Ltd., ... vs Dy.Cit.,Circle-2(1)(1), , Ahmedabad on 24 May
confirming that MICR Centre managed by SBI was providing Managerial / Technical Services as per Explanation (b) of Section 194J read with Explanation-2 to Section ... rendering of any managerial, technical or consultancy services (including the provision of services of technical or other personnel) but does not include consideration
rendering of
any technical or consultancy services (including through the provision of
services of technical or other personnel) if such services :
(a) are ancillary ... technical knowledge, experience, skill, know-how, or processes or
consist of the development and transfer of a technical plan or technical design The
services provided
rendering of any managerial technical or
consultancy services (including the provision of services of technical or
personnel) but does not include consideration for any construction ... technical services in
nature or character. The services rendered in the course of rendering agency
services are essentially business services and to obtain the business
contract for providing professional services or technical services. The providing of professional services and technical services would enrich the knowledge of the person who acquires ... rendering of any managerial, technical or consultancy services (including the provision of services of technical or other personnel) but does not include consideration
rendering of any technical or
consultancy services (including the provision of services of a technical or
other personnel) which :
(a) are ancillary and subsidiary ... rendering of any
technical or consultancy services (including through the provision of services
of technical or other personnel) if such services :
(a) are ancillary
definition of fees for technical services was broad enough to cover any
consideration for services of managerial, technical or consultancy nature. On the basis ... cannot be termed as technical
services. Therefore, the services rendered by the above agents cannot be termed as
Technical Services'.
4.11 Therefore
rendering of any managerial, technical or
consultancy services (including the provision of services of technical
or other personnel) but does not include consideration ... rendering of any managerial, technical or
consultancy services (including the provisions of services of technical or
other personnel) but does not include consideration
rendering of any technical
or consultancy services (including the provisions of services of technical or other
personnel) which :
(a)are ancillary and subsidiary ... services can render the same
services without recourse to the service provider. The answer is clearly in negative. Merely
because consultancy services has technical inputs
nature of postage / courier
services or locker charges, therefore, such services are falling in the
nature of technical services. Therefore, the AO has rightly concluded ... account of client in electronic farm. These services cannot be said for
providing professional services or providing technical services, but the
charges are merely recovery