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.

[Rama Krishana]

I don't think this activity is subject to any provision of TDS.

[ASHISH DESAI]

This case law is for Raj. Warehousing, whereas my querry is for HOUSING CO-OPERATIVE SOCIETY. in this case can the exemption be available?

AI Summary

TDS applicability on depository fees: whether custodial service payments to depositories attract withholding or an exemption. Question whether fees paid by companies to depositories for custodial services attract TDS and under which withholding category; one respondent states the payments are not subject to TDS, while another references case law on warehousing and queries whether similar exemption treatment applies to a housing cooperative society, reflecting uncertainty about exemption availability and payment classification for withholding.