TDS on brokerage

[gulab singh]

I got brokerage after TDS. I have to distribute this brokerage to sub Brokers. Is there is TDS applicable?

[Rama Krishana]

You are getting brokerage and making payment of brokerage to sub brokers are independent transactions to be seen independently. Therefore, if you are otherwise liable to TDS, there is no relaxation in the provisions that where you have received brokerage after tds there is no requirement of deducting tds from sub-brokers. In other words, you should deduct TDS.

AI Summary

TDS deduction obligation: payers must deduct tax when distributing brokerage to sub-brokers despite prior TDS on receipts
Payments received and payments made are separate transactions for withholding purposes; prior TDS on brokerage received does not relieve the payer of the duty to deduct TDS on amounts payable to sub-brokers, and the payer should deduct tax at source if otherwise liable.