We are making the export of goods in foreign countries & for brand promotion of our products we are reimbursing the expenses incurred by our customers on behalf of company on the basis of actual bill. whether Tds will be deducted or not???
06 May 2016
Seetharaman Sir, Company is doing brand promotion..........It is advertisement expense. Tds liability should arise.If we will say that tds is not applicable bcz com. is making reimbursement than it will be a tool for the company for avoiding liability of TDS.
07 May 2016
First you understand the concept. No TDS applicable u/s 195 if the income is not taxable in India. Here the payment is to non residents for services rendered outside India, having no permanent establishment in India, which is not taxable in India.
CAclubindia
