No TDS on Bank Guarantee Commission
Bank guarantee commission is not in nature of commission paid to an agent but it is in nature of bank charges for providing one of banking service and, thus, while making payment of bank guarantee commission, requirement of deduction of tax at source under section 194H would not arise
It was held in the case of
 101 taxmann.com 83 (Bombay)
HIGH COURT OF BOMBAY
Commissioner of Income Tax (TDS)-1
Larsen & Toubro Ltd.*
AKIL KURESHI AND M.S. SANKLECHA, JJ.
IT APPEAL NO. 769 OF 2016†
DECEMBER 4, 2018.