TDS on NSDL Fees

As per MCA notification all private ltd companies to issue securities in dematerialized form.  For this  NSDL/CDSL will charge govt fees as joining fees and annual custody fees, are this fees are subject to TDS. if so, under which section & what rate.

Replies (3)
Quick Summary
Following the MCA notification requiring private limited companies to issue securities in dematerialised form, questions arise about TDS on NSDL/CDSL fees. These fees, including joining and annual custody charges, are generally considered 'professional' or 'technical services' and are subject to TDS under Section 194J of the Income Tax Act. The standard TDS rate is 10%, though this can increase to 20% if the payee (NSDL/CDSL) lacks a PAN. It's advisable to consult a tax professional for specific guidance.

Yes, the fees charged by NSDL/CDSL for dematerialization of securities are subject to TDS. The government fees paid to NSDL/CDSL for dematerialization of securities are considered as "professional services" and are liable for TDS under Section 194J of the Income Tax Act, 1961. The TDS rate applicable would be 10% (plus applicable surcharge and cess). However, if the payee (NSDL/CDSL) has a permanent account number (PAN), the TDS rate would be 10% of the fees paid. If the payee does not have a PAN, the TDS rate would be 20% of the fees paid. Please consult a tax professional or chartered accountant to ensure compliance with the TDS regulations and to determine the correct TDS rate and payment procedure.

As per the MCA notification, all LLCs are required to issue securities in non-physical form. Regarding the fees charged by NSDL/CDSL to the government, such as the joining fee and annual custody fee, these fees may be subject to tax deduction (TDS).

As per the regulations, this service fee is usually subject to tax deduction under Section 194J of the Income Tax Act, at the rate of 10%. However, you should check the specific regulations and applicable conditions to ensure accuracy. poppy playtime chapter 3

Yes, the fees are subject to TDS as it is considered technical services as they involve technical expertise and systems for securities management.

TDS Applicability

Section: 194J

Rate: 10%

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