Service Tax payable on Corporate Guarantee Commission

Olam Agro India Ltd. Vs C.C.E (CESTAT Delhi)

A corporate guarantee is used when a corporation agrees to be held responsible for completing the duties and obligations of debtor to a lender, in case the debtor fails to comply with the terms of the debtor- lender contract. Whereas a bank guarantee is a promise from a bank that the liability of the debtor will be met in the event the debtor fails to favour his contractual obligations. Therefore, the nature of corporate guarantee as well as of bank guarantee is one and the same i

Please become a Premium member. If you are already a Premium member, login here to access the full content.