29 April 2013
when we take bank guarantee say for rs 7000000 do we need to pay that amount to bank. but i have seen bank demands margin(security) money also charges processing fees,commission.
30 April 2013
You need to have adequate funds in your bank account because, without that the bank will unable to guarantee on your behalf. Banks normally charge a commission for providing bank guarantees and in some cases processing fees too. it is normal.
Querist :
Anonymous
Querist :
Anonymous
(Querist)
01 May 2013
do we have to deduct tds on commission & processing fees charged by bank for bank guarantee. Is service tax charged by bank on processing fees & can we take input of that service tax charged & if bank doesn't show that service tax is charged in the bank statement shall we assume that to be inclusive of service tax. b Because this has happened in my company, in the documents relating to bank guarantee its written processing fees -0.5%+st but in bank statement only 800000 is debited & in my cos. book J/E is processing fees..........a/c to bank.
01 May 2013
do we have to deduct tds on commission & processing fees charged by bank for bank guarantee. Is service tax charged by bank on processing fees & can we take input of that service tax charged & if bank doesn't show that service tax is charged in the bank statement shall we assume that to be inclusive of service tax. b Because this has happened in my company, in the documents relating to bank guarantee its written processing fees -0.5%+st but in bank statement only 800000 is debited & in my cos. book J/E is processing fees..........a/c to bank.
please reply.experts please revert back asap it's urgent.
12 June 2013
Bank guarantee is procured from the ban against 100% deposit in FD a/c and for that bank charges commission @1%. You cannot deduct any tax on the account of commission paid to the bank as the bank debits the same to your account and bank is exempted from TDS
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