Trade Validation Charges are generally subject to TDS under Section 194J of the Income Tax Act, 1961. This section applies when payments are made for professional or technical services to a resident. The applicable TDS rate for these charges is 10%.
16 April 2025
Under the Income Tax Act, 1961, Trade Validation Charges are typically considered as fees for professional or technical services, and Tax Deducted at Source (TDS) is applicable under Section 194J @10% if paid to a resident.