TDS on commission to sub-broker
This query is : Resolved
16 March 2010
Sir, as per the definition of commission & brokerage in Sec 194H it includes any payment received or receivable, directly or indirectly, by a person acting on behalf of another person for services rendered (not being professional services) or for any services in the course of buying or selling of goods or in relation to any transaction relating to any asset, valuable article or thing, not being securities.
So on payment of brokerage by client to broker(say Indiabulls) TDS not to be deducted. But when Indiabulls pays commission to its sub broker, is TDS u/s 194H to be deducted?
So on payment of brokerage by client to broker(say Indiabulls) TDS not to be deducted. But when Indiabulls pays commission to its sub broker, is TDS u/s 194H to be deducted?
16 March 2010
Yes TDS to be deduct under sec 194H
16 March 2010
YES U/S194H, IF IT IS NOT ON SECURITIES.
16 March 2010
In this case, India Bulls is not a client of that sub-broker in any transaction for purchase or sale of security. But the sub-broker is like an agent which promotes the business of the main broker by procuring clients and business for which the commission is paid. Hence, Tax is deductible on such commission u/s 194H.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Tax Audit Applicability – Newly Formed Partnership Firm with Profit Below 6%/8%
- TDS CREDIT MISMATCHING
- Buy back of shares u/s69
- Sec 44ada applicable only or both
- RELATED TO TRIBUNAL APPEAL
- Need Professional Opinion - AY 2012-13 Old Demand & AY 2026-27 Refund Adjustment
- GST Rate for Catering Services
- Taxability of Partnership firm for FY 2025-26
- IS AUDIT MANDATORY IF COMMISSION INCOME IS MORE THAN 50 LAKH
- EMI ISSUE IN HOUSING LOAN OLD REGIME
- CALCULATION OF DEFFERED TAX - OP BL IS DTL & CURRET IT DTA
- LLP audit under companies act
- Experienced CA recommendation from Kolkata for FNO return filing
- Interest Reporting in Form 168
- Sales of goods of amount Rs77 lakhs to a party
- Tax Demand of ₹4,650 for AY 2026-27
- Concept of Vendor and customner reconciliation
- Mistake in e-invoice identified after 24 hours
- EXPORT PAYMENT
- NRI ITR2 account in 2025-26.
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
