TDS on Bank Gaurantee Commission

[mukesh sharma]

Dear All,

We have issue a bank guarantee to government bodies and bank commission charges pay to bank ₹ 1.50 Lakh approx annualy.

Kindly advice that tds should be deduction or not in u/s 194H.

AI Summary

Is TDS under Section 194H applicable to bank guarantee commission paid to banks for government contracts? A user inquired about the applicability of Tax Deducted at Source (TDS) under section 194H on a bank guarantee commission paid to a bank, amounting to approximately 1.50 lakh annually. The query seeks advice on whether TDS should be deducted on this payment when issuing a bank guarantee to government bodies.