24 November 2022
Hi, We have sent a couple of employees to UAE for Project work, and we have hired one of the Human Resource companies based out of UAE to process the payroll of those employees, as it is mandatory for them to get the salary from the UAE company. Now, the above employees will be on the payroll of the HR company for 3 months, and we want to pay the salary costs to the HR company we are not able to figure out which RBI purpose code should be used for these kinds of transactions while remitting the payment from the bank. We tried using S1099 Other services not included elsewhere, but this was rejected by our bank.
24 November 2022
Correct, Sir, it is a service. But at the same time, it's just reimbursement of salary, and we have got an invoice of reimbursement for salary. If it's service, then there would be a TDS deduction, right? But as it's just a salary reimbursement, there won't be TDS under 195.
Hence, we are confused about which RBI purpose code to be used for this remittance.
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