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 Required on Brokerage Payments to Sub-Brokers, Despite Initial TDS on Received Brokerage A user inquired about the applicability of Tax Deducted at Source (TDS) on brokerage distributed to sub-brokers after receiving it post-TDS deduction. The response clarified that receiving brokerage after TDS and paying brokerage to sub-brokers are separate transactions. Consequently, the obligation to deduct TDS from payments to sub-brokers remains, regardless of the initial TDS deduction on the received brokerage.