Commission on Corporate Guarantee

Narendra Verma (Senior Executive) (116 Points)

01 May 2010  

Hi,

There is A ltd (Holding co.) and B ltd (subsi co.). A ltd has given corporate guarantee in respect of loan made to B ltd.

Now A ltd. is demanding commission from the B ltd for the corporated guarantee provided by it. Can B ltd. pay commission on to A ltd. for corporate guarantee?