TDS on Brokerage Paid to Zerodha

Taxation
1

If Tax Audit is applicable to my clients and his Profit & Loss Account expense debited aa brokerage 189000₹.
Under section 194 H TDS on brokerage apply? How to comply this provision.

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Hi Anand,

I would like to draw your attention to Sec 194H which clearly excludes brokerage on securities.

Please refer the text directly from the bare Act.

“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;

Further there are few case laws and the same has been upheld.

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Tradingqna’s go to CA Jason :grin:

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Thanks Jason