21 October 2010
If these Rs.90000/- were paid to any employee towards foreign travelling exp.to perform official duties, no tax is required to be deducted. If it has been given as perquisite to any employee, than TDS applicable to salary (sec 192) will be applicable and be added in salary income. If it is paid as business promotion exp, than again no TDS shall be deducted.
21 October 2010
The replies of Umashankar are in correct in the understanding that the travel expenditure has been reimbursed to a resident Indian or to non resident who is an employee. However the language of the query suggest that the reimbursement has been made to a non resident who is not an employee. If this understanding is correct, then if the reimbursement is supported back to back by the expenses vouchers such as tickets and taxi bill etc. then this is not taxable, if not then one may need to deduct TDS depending upon the country of residence of Non resident and provisions of DTAA etc. For further clarification please provide the full details of the transaction.
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