Tds on reg charges paid to sebi?
This query is : Resolved
15 December 2012
Mr.X a member is SEBI and he paid Rs. 500000 as renewal fee.
Is he should Deduct tax on payment made to SEBI for license renewal fee.
If it is deductible under it comes under 194 J or other section.
Guide me…….
Thank in advance
Is he should Deduct tax on payment made to SEBI for license renewal fee.
If it is deductible under it comes under 194 J or other section.
Guide me…….
Thank in advance
17 December 2012
As per Section 25 of the SEBI Act, 1992;
“Notwithstanding anything contained in the Wealth Tax Act, 1957, the Income Tax Act, 1961 or any other enactment for the time being in force relating to tax on wealth, income, profits or gains -
(a) the Board;
(b) the existing Securities and Exchange Board from the date of its constitution to the date of establishment of the Board, shall not be liable to pay wealth-tax, income-tax or any other tax in respect of their wealth, income, profits or gains derived.”
Therefore, in view of the above, you need not deduct TDS.
For more information you may contact;
Email: cabrijesh@yahoo.co.in
Mobile-9312412020
“Notwithstanding anything contained in the Wealth Tax Act, 1957, the Income Tax Act, 1961 or any other enactment for the time being in force relating to tax on wealth, income, profits or gains -
(a) the Board;
(b) the existing Securities and Exchange Board from the date of its constitution to the date of establishment of the Board, shall not be liable to pay wealth-tax, income-tax or any other tax in respect of their wealth, income, profits or gains derived.”
Therefore, in view of the above, you need not deduct TDS.
For more information you may contact;
Email: cabrijesh@yahoo.co.in
Mobile-9312412020
Message likes :
1 times
18 December 2012
Please consider the following case and post Ur command
http://taxguru.in/income-tax/tds-194j-deductible-transaction-charges-paid-bse-fees-technical-services.html
http://taxguru.in/income-tax/tds-194j-deductible-transaction-charges-paid-bse-fees-technical-services.html
27 July 2025
Great query! Here's a clear explanation on **TDS applicability on renewal fees paid to SEBI**:
---
### 1️⃣ Nature of Payment:
* Renewal fee paid to **SEBI (Securities and Exchange Board of India)** is essentially a **regulatory fee or statutory fee**.
* It is **not a payment for professional or technical services**.
* It is more like a **license fee or membership fee**.
---
### 2️⃣ Is TDS deductible on renewal fees paid to SEBI?
* **No, TDS is not deductible on statutory fees or renewal fees paid to SEBI.**
* SEBI is a **government regulatory authority** and such fees are statutory in nature.
* The payment is **not covered under Section 194J or any other TDS section** for professional or technical services.
---
### 3️⃣ Relevant Case & Circulars:
* Payments like **transaction charges, fees to exchanges (like BSE, NSE), SEBI fees** are generally **not subject to TDS**.
* For example, similar charges paid to BSE or NSE do not attract TDS as they are statutory in nature.
---
### **Summary:**
| Payment Type | TDS Applicable? | Section |
| ------------------------- | --------------- | -------------- |
| Renewal fees paid to SEBI | No | Not applicable |
---
### **Reference:**
* The link you shared refers to **transaction charges paid to BSE** and explains **TDS is not deductible on such fees**.
* Same principle applies for SEBI renewal fees.
---
If you want, I can help draft a formal note or letter citing these clarifications for your records!
---
### 1️⃣ Nature of Payment:
* Renewal fee paid to **SEBI (Securities and Exchange Board of India)** is essentially a **regulatory fee or statutory fee**.
* It is **not a payment for professional or technical services**.
* It is more like a **license fee or membership fee**.
---
### 2️⃣ Is TDS deductible on renewal fees paid to SEBI?
* **No, TDS is not deductible on statutory fees or renewal fees paid to SEBI.**
* SEBI is a **government regulatory authority** and such fees are statutory in nature.
* The payment is **not covered under Section 194J or any other TDS section** for professional or technical services.
---
### 3️⃣ Relevant Case & Circulars:
* Payments like **transaction charges, fees to exchanges (like BSE, NSE), SEBI fees** are generally **not subject to TDS**.
* For example, similar charges paid to BSE or NSE do not attract TDS as they are statutory in nature.
---
### **Summary:**
| Payment Type | TDS Applicable? | Section |
| ------------------------- | --------------- | -------------- |
| Renewal fees paid to SEBI | No | Not applicable |
---
### **Reference:**
* The link you shared refers to **transaction charges paid to BSE** and explains **TDS is not deductible on such fees**.
* Same principle applies for SEBI renewal fees.
---
If you want, I can help draft a formal note or letter citing these clarifications for your records!
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