Tribunal held that , transaction charges’ paid by stock broker to stock exchange were not for ‘technical services’ provided by stock exchange, but for facilities provided by stock exchange to its members, therefore, no tax on such payments was required to be deducted at source as fees for technical services hence no disallowance can be made for failure to deduct tax at source u/s. 194J .( AY. 2009 -10)
DCIT v. Vibrant Securities (P.) Ltd. (2018) 168 ITD 47 (Mum) (Trib.)
S.40(a)(ia):Amounts not deductible – Deduction at source – Transaction charges paid by stock broker cannot be held to be fees for technical services hence not liable to deduct tax at source. No disallowance can be made. [ S.194J ]