Tds on foreign payment (reimbursement of expenses)
This query is : Resolved
samarjit panda
(Querist)
09 August 2013
Dear Experts,
Please guide for following points.
1-Our company is a french MNC. Our holding company has deputed some EXPATS in India for which they are working in India under payroll of France.
2-Ther are working here in India and having PAN NO.
3-Ther are getting some Indian Salary here in India and Salary in Home currency in France.
4-We have computed their Income Tax for both Indian Salary also for French Salary and discharged the tax u/s 192.
5-Our Holding Company is raising bills on quarterly basis with no Mark-up.
Please guide whether TDS U/s 195 is to be deducted while payment made to France company.
Please guide for following points.
1-Our company is a french MNC. Our holding company has deputed some EXPATS in India for which they are working in India under payroll of France.
2-Ther are working here in India and having PAN NO.
3-Ther are getting some Indian Salary here in India and Salary in Home currency in France.
4-We have computed their Income Tax for both Indian Salary also for French Salary and discharged the tax u/s 192.
5-Our Holding Company is raising bills on quarterly basis with no Mark-up.
Please guide whether TDS U/s 195 is to be deducted while payment made to France company.
09 August 2013
Dear Samarjit,
The criteria to attract tax u/s 195 is that the nature of payment should be income.
Since reimbursment of salary expenses is not an income to Holding company TDS u/s 195 will not be applicable.
Regards.
The criteria to attract tax u/s 195 is that the nature of payment should be income.
Since reimbursment of salary expenses is not an income to Holding company TDS u/s 195 will not be applicable.
Regards.
CA. Anuj Gupta
(Expert)
28 October 2013
There are divergent decisions on the said topic, however I personally feel that we should not deduct TDS on the same.
Anuj
femaquery@gmail.com
Anuj
femaquery@gmail.com
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