TDS applicability

No deduction will be allowed for brokerage, where Tax is ought to be deducted but not deducted. The TAN no. has to be mandatorily applied.

Under section 194H, for any commission or brokerage paid by an individual, whose accounts are required to be audited u/s 44AB, has to deduct the tax at source @ 10%.

Hi

I give below the explanation (i) to Sectiion 194 which defines `commission or brokerage;

commission or brokerage includes ................................................................. buying or selling of goods or in relation to any transaction relating to any asset, valuable article or thing not being securities.

Since brokerage to share agent do not fall within the definition of commission or brokerage, TDS is not applicable on such payments.

Rgds/Dharmaraju