Dtaa with italy
This query is : Resolved
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?
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
(Expert)
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
(Expert)
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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