Section 194H TDS not applies on Bank Guarantee Commission

M/s. Navnirman Highway Project Pvt. Ltd. Vs DCIT (ITAT Delhi) The issue under consideration is whether TDS under section 194H is applicable from payment of bank guarantee commission to the bank? ITAT states that when the bank has issued bank guarantee on behalf of the assessee there is no principal – agent relationship between the bank and the assessee which is a mandatory condition for invoking the provisions contained u/s 194H and in these circumstances, the assessee was not liable to deduct tax at source u/s 194H from  payment of bank guarantee commission to the bank. Moreover, bank guar...