03 October 2011
The payment is only fees for obatining facilities of stock exchange. It is neither a contractual payment(194C) nor professional fees (194J). Hence payment of listing/ membership fees to stock exchange is outside the purview of TDS provisions.
11 October 2011
Kotak Securities Ltd. vs. Addl. CIT (2008) 25 SOT 440 (Mum) Transaction fee paid by Brokers to the Stock Exchange is not paid in consideration of any service provided by the stock exchange. It is a payment for use of facilities provided by the stock exchange and such facilities are available for use by any member. Therefore, the transaction fee paid could not be said to be a fee paid in consideration of any technical services rendered by the stock exchange to the assessee. The provisions of S. 194J were, thus, not attracted.
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