Tds on commission paid to bank

This query is : Resolved

Ishita Goyal (Querist)
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15 December 2016 Sir,
Whether TDS is required to be deducted on commission paid to bank for guarantee for AY 2010-11 & AY 2011-12?
Kindly reply.

Kaushik Joshi

Kaushik Joshi (Expert)
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15 December 2016 TDS is not required to be paid on commission on BG paid to BANK. Payment to finance institution other than a bank shall attract TDS.

Ishita Goyal

Ishita Goyal (Querist)
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16 December 2016 Sir, notification no 56/2012 came in force from 01.01.2013 that exempt bank guarantee commission. Is it applicable for AY 2010-11 & 2011-12?
Also, can you please mention section that tells that finance institution doesnot include Banks and no TDS u/s 194H is required to be deducted.

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