Applicability of TDS on payment to NSDL or CDSL

[RUPESH SRIVASTAVA]

Some companies have tied up with either NSDL or CSDL for having their shares with them and they act as custodial for the companies shares as depositary. For this service, both NSDL and CSDL charge fees and are paid by the companies. Now the question is whether TDS will apply to this type of payment and if so under which catagory either 194C or 194.

AI Summary

Debate on TDS Applicability for Payments to NSDL/CDSL for Custodial Services under Sections 194C or 194 A discussion was initiated regarding the applicability of Tax Deducted at Source (TDS) on payments made by companies to NSDL or CDSL for custodial services related to company shares. The question focused on whether such payments fall under TDS provisions, specifically under sections 194C or 194. One participant believed that this activity is not subject to TDS, while another participant referenced a case related to warehousing, seeking clarification on TDS exemptions for a housing cooperative society.