Tds on various payment made to nse/bse

This query is : Resolved

Vikas Jain (Querist)
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24 January 2012 Q1. XYZ Pvt. Ltd. is a stock Broker, dealing with NSE/BSE and pay penalty to NSE/BSE for cross the limit allowed by NSE/BSE, whether this penalty payment to NSE/BSE is liable to TDS deduction?

Q2. Whether TDS is Payable on Transaction Charges paid to NSE/BSE.

Q3. Whether a stock broker can recover excess transaction charges from client, than he is liable to pay to NSE/BSE?

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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24 January 2012 Q.1.
TDS is leviable U/s 194J as the penalties are resulting from the managerial activity of the stock exchanges.

Q.2 .
TDS U/s 194J is deductible.

Mumbai High Court has settled this issue in the case of CIT V Kotak Securities Ltd recently on 21.10.2011.

Q.3.
Stock Brokers has to abide by the exchange rules and regulations for Brokers. Pl. go through these. In my view he can not do so. He can charge under the head brokerage, only.

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Vikas Jain

Vikas Jain (Querist)
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25 January 2012 Thanks Sir.

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