18 April 2011
My query is:- I am conducting audit of a company. I found a case where commission has been paid to SBI for some IPO related work & TDS is deducted u/s 194 H.. I just want to know is it correct??
18 April 2011
As per explanation to section 194H, exclusion is in relation to commission for services for buying and selling of securities. Here, the activity is other that that mentioned above. In view of the above observation,the course of action of the Bank is correct meaning thereby 194H attracts on IPO commission.
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