A small area d A is located at a radial distance rho from the axis of the shaft. A torque T acts on the shaft. A shear stress tau acts on the surface d A.
We must determine the relationship between the torque T transmitted by the shaft and the shear stress τ that is developed internally in the shaft material.

Suppose we consider a very small portion of the cross-sectional surface. This area dA is located at a radial distance ρ from the axis of the shaft.

In response to applied torque T, shear stresses τ are developed on the cross-sectional surfaces.

Stress is defined as force per unit area. The resultant shear force acting on the small element is simply the product of τ and dA.