Dtaa with italy

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Querist : Anonymous

Querist : Anonymous (Querist)

04 April 2016 We have a client whose head office is in India and a subsidiary company in Italy. All expenses as processing and inspection charges which are ocurred by subsidiary company are reimbursed by Head Office from India. For that we have to give Form 15CB to it. My question is whether these expenses are liable to TDS and if yes, at which rate?

CA Madhvi

CA Madhvi (Expert)
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04 April 2016 First you to check taxability of such payments in hands of foreign concern, Whether they constitute income under section 5 or section 9 in the hands of recipient in India ,then and then only TDS is required u/s 195.And if they are taxable in India,you can resort to DTAA relief, if any available subject to fulfillment of other conditions such as TRC.

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Amol S Joglekar

Amol S Joglekar (Expert)
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05 April 2016 please check sec 195 : Any person responsible for paying to a non-resident, not being a company

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CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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05 April 2016 This is only a reimbursement of expenses incurred by foreign subsidiary not taxable in India, hence no TDS applicable.

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