TaxTMI 
TaxTMI 
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.
TDS on Bank Gaurantee Commission
20 Jan 2016 
0 Replies 
701 Views Asked by
TDS on commission payments: assess if bank guarantee commission attracts withholding based on payment characterisation and recipient status.
Whether withholding obligation arises on bank commission paid for issuing a guarantee to government bodies is the central question. The legal focus is on characterising the payment as commission versus a distinct banking fee, the recipient's status, and whether statutory withholding for commission receipts applies to such bank charges; analysis should consider contractual terms and documentary support to determine correct withholding treatment. (AI Summary)
Whether withholding obligation arises on bank commission paid for issuing a guarantee to government bodies is the central question. The legal focus is on characterising the payment as commission versus a distinct banking fee, the recipient's status, and whether statutory withholding for commission receipts applies to such bank charges; analysis should consider contractual terms and documentary support to determine correct withholding treatment. (AI Summary)