TDS
This query is : Resolved
09 February 2010
whether payments made by stock broker (main broker)to nse /bse /stock exchange, as transection charges, VSAT rent, annual membership fees etc.liable for tds? if yes under which section and if no why?
11 February 2010
No.
Here is the link to the case law
http://www.taxguru.in/income-tax-case-laws/payment-made-by-a-member-to-its-stock-exchange-for-vsatlease-lineboltdemat-charges-is-not-fee-for-technical-services-us194j.html
Here is the link to the case law
http://www.taxguru.in/income-tax-case-laws/payment-made-by-a-member-to-its-stock-exchange-for-vsatlease-lineboltdemat-charges-is-not-fee-for-technical-services-us194j.html
11 February 2010
And for transaction charges it has been decided by the Honourable Mumbai Tribunal in the case of Kotak Securities Ltd. vs. Addl. CIT (2008) 25 SOT 440 (Mum.) that Transaction fees paid to stock exchange can not be said to be a fee paid in consideration of stock exchange rendering any technical services to the assessee.
11 February 2010
And for transaction charges it has been decided by the Honourable Mumbai Tribunal in the case of Kotak Securities Ltd. vs. Addl. CIT (2008) 25 SOT 440 (Mum.) that Transaction fees paid to stock exchange can not be said to be a fee paid in consideration of stock exchange rendering any technical services to the assessee.
04 March 2010
but nse has issued rates at which tax to be deducted by main broker.
05 March 2010
It is due to abundant precaution that TDS should be deducted on such payments as the case mentioned above are of the tribunal and the same are already appealed against in the bobbay high court. Otherwise till the time of disposal of appeal by the high court the said decision can be relied upon as there is no contrary judgement to the above mentioned judgement.
05 March 2010
Also NSE had circulated an opinion taken from 2 lawyers upon the same issue and had circulated the same to many of its brokers and the said opinion also stated that TDS not to be deducted by brokers to payment made to NSE.
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