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The Tax Publishers2021 TaxPub(DT) 6016 (Del-Trib) INCOME TAX ACT, 1961
Section 194H
Provision of guarantee is one of the banking services provided by Scheduled Banks to assessee as per the norms of the RBI. It cannot be said to be a 'commission' as intended to under section 194H of the Act but it is in the nature of bank charges charged by the bank for provision of services to assessee. Therefore, no TDS was called for under section 194H.
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Tax deduction at source - Under section 194H - Guarantee commission charges paid to bank -
Assessee paid guarantee commission charges to bank for giving guarantee in favour of seller and clamed deduction. AO disallowed deduction for want of TDS under section 194H. Held: Provision of guarantee is one of the banking services provided by Scheduled Banks to assessee as per the norms of the RBI. It cannot be said to be a 'commission' as intended to under section 194H of the Act but it is in the nature of bank charges charged by the bank for provision of services to assessee. Therefore, no TDS was called for under section 194H.
Relied:CIT-TDS (1), Bombay v. Larsen and Toubro Ltd. (2018) 101 Taxmann.com 83 (Bom-HC) : 2018 TaxPub(DT) 7994 (Bom-HC)
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2013-14 & 2014-15
INCOME TAX ACT, 1961
Section 5
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