TDS on Commission For opening LC with Bank
This query is : Resolved
29 April 2009
Dear sir,
When we open a Letter of credit with bank , the bank charges some commission do we have to deduct TDS on the Commussion amount paid?
When we open a Letter of credit with bank , the bank charges some commission do we have to deduct TDS on the Commussion amount paid?
29 April 2009
A straight forward reading of Section 194H indicates that Guarantee Commission paid to a Bank will be covered by it. There is no exemption to banks similar to the one provided in secton 194A. Hence TDS needs to be deducted @ 10% if the gross amount of commission is more than 2500 for the financial year.
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