Is TDS applicable on listing fees?

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This discussion clarifies whether Tax Deducted at Source (TDS) is applicable on listing fees paid by vendors to retail stores for stocking their products. The consensus is that TDS is indeed applicable under Section 194R of the Income Tax Act, even when the vendor pays a one-time fee to have their goods displayed and sold in the retail chain.

Kenil Satra

Kenil Satra (Querist)

09 September 2024 Is tds applicable on listing fees paid to retail store by vendor to sell their products in the respective retail store? For e.g.: A retail chain store XYZ charges Rs.50000+gst as listing fees from Vendor A to make available his/her/their products in the said retail chain store XYZ.

Dhirajlal Rambhia

Dhirajlal Rambhia

(Expert)

09 September 2024 Who sells the products? Vendor through his agents of the owner of XYZ?

Kenil Satra

Kenil Satra (Querist)

09 September 2024 Vendor A intends to sell the products directly to store XYZ and for that purpose the store XYZ charges a onetime listing fees from Vendor A

Dhirajlal Rambhia

Dhirajlal Rambhia

(Expert)

09 September 2024 Yes, TDS applicable u/s. 194R IT act.

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