No TDS on Bank Guarantee Commission

No TDS on Bank Guarantee Commission

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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 
 
[2019] 101 taxmann.com 83 (Bombay)
 
HIGH COURT OF BOMBAY
 
Commissioner of Income Tax (TDS)-1
 
v.
 
Larsen & Toubro Ltd.*
 
AKIL KURESHI AND M.S. SANKLECHA, JJ.
IT APPEAL NO. 769 OF 2016†
 
DECEMBER  4, 2018.
 

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