tds on commission in securities, to a sub broker

Page no : 2

Ankit a shah (Internal auditer) (92 Points)
Replied 13 June 2012

heloo aaditya im sub broker and i want some proof that sub broker not include sec 194h if u have than send me plz its urgent

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Maulik Savani (PRoprietor) (28 Points)
Replied 15 December 2012

Dear all,

i agree with Aditya tds is not deductible as the payment made is in relation to securities. But we need any case law to prove our case strong.

Second view is that Original Brokerage received by the main broker is in relation to the securities, but the brokerage shared with sub broker is due to contractual agreement with the main broker and sub broker to share the income, so the brokerage shared with sub brokerage will not be in relation to securities, but it will be in relation to contract.

hence we need clarity on this matter.

CA Vandana Rathi (Assistant Manager) (128 Points)
Replied 02 April 2016

ARE THERE ANY CASE LAW TO SUPPORT THIS STAND. For Sub Broker - Sectopn 194h reply on rashmiacharyaoffice @ gmail.com

S. THIYAGARAJAN (ACCOUNTANT) (60 Points)
Replied 20 June 2016

So the question here is whether TDS is liable to be deduction from brokerage paid to subbrokers in securities which is not liable as per section 194H quoted above.
NOT LIABLE TO DEDUCT TDS
i have worked as accountant in stock broker company

S. THIYAGARAJAN (ACCOUNTANT) (60 Points)
Replied 20 June 2016

hi every one i have completed 2 assessment with ITO for stock broker accounts as a accountant stock broker not liable to deduct Tds for subbrokerage/commission paid to subbroker/AP u/s 194H