Tds on brokerage/commission on securities

TDS / TCS 2170 views 2 replies

Khushboo Surjan

44 Points Posted on 03 January 2012

As per Section 194H TDS has to be done on any brokerage/ commission paid.

“commission or brokerage” 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

Does that mean that when any commission is paid in respect of securities transactions, no TDS has to be done? If so is the case, please quote a case law..

Also, in case of an appeal Form 35 is to be accompanied witha memorandum of appeal, statement of facts and grounds of appeal. kindly describe as to the content of Memorandum of appeal.

Thanks..

Replies (2)

Yogesh Bhandari

CA FINAL Student

429 Points Posted on 03 January 2012

The transactions relating to securities are not covered by sec. 194H but it is covered by Sec. 194C like TDS on Brokerage and commission paid to underwriters, Brokerage on stock exchange transaction of securities (dealt by Sec. 194C).

Memorandum of Appeal is somehow just explaining the reasons relating to appeal / appeal filing in details.
Statement of Facts and Grounds of Appeal are just explaining the facts of case and grounds on which Appeal take a plea.