In Brief
This case concerns whether transaction charges paid by stock brokers to the Bombay Stock Exchange for screen-based trading constitute 'technical services' subject to Tax Deduction at Source (TDS) under Section 194J of the Income Tax Act. The High Court had held they did. The Supreme Court reversed this, holding that transaction charges are payments for facilities provided by the exchange, not 'technical services'. Since such automated services are mandatory for all members and not customised to individual needs, they constitute infrastructure facilities, not specialised technical services. Therefore, no TDS is deductible under Section 194J on these payments."
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