Tds on corporate guarantee fee paid to company
This query is : Resolved
02 April 2013
Dear All,
We have to pay Corporate Guarantee Fees to our Parent company towards they have provided bank guarantee on behalf of us. Please clarify whether TDS applicable for this transaction or not?
Regards
Sathish
We have to pay Corporate Guarantee Fees to our Parent company towards they have provided bank guarantee on behalf of us. Please clarify whether TDS applicable for this transaction or not?
Regards
Sathish
CA. PIYUSH GOEL
(Expert)
02 April 2013
dear when a company say "A" is giving Guarantee to a bank in respect of another company say "B" . it clearly shows that it is a contract of surety b/w "A" and "B". because if company "B" makes default in making payment to the bank, "A" will have to make payment on its behalf..
therefore TDS should be deducted u/s 194C
therefore TDS should be deducted u/s 194C
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