TDS on Re-imbursement expenses incurred abroad


This query is : Resolved 

05 June 2010 Dear Sir/Madam,

We have to pay clearing & forwarding charges to non-resident abroad who have paid these charges on behalf of us in abroad.

Now the question is whether we need to deduct the tax u/s 195 while re-imbursing the same?

08 June 2010 Hi,

In my view no tax will be deductible as the reimbursements which the NR is receiving is not an income chargeable to tax in India. Same view has been taken in the cases of Van Oord ACZ and Prasad Productions.

Best Regards

Ankit Gangwani

08 June 2010 Thanks very much.


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