Tds on reimbursement of expenses

This query is : Resolved

Ankit Jain (Querist)
Follow

05 June 2015 One of my clients ( say A) is a subsidiary of a Singapore based Co. (Say B). B Co. has various subsidiaries all over the world. B Co. has entered into an agreement with a 3rd Party "C" for Annual Maintenance of Scanners For all its subsidiaries globally. A specific rate is fixed for each type of scanner. Now C raises an invoice to B for maintenance of scanners at the offices of A in India. The maintenance work is carried out by C or its agents/franchisee in India at A's offices. Only in case of any major repairs, the scanners are sent to Singapore or Dubai. Now B raises a debit note to A for scanner maintenance on cost to cost basis. When A is making payment to B, can it claim exemption from withholding of taxes under reimbursement of expenses?

Amol S Joglekar

Amol S Joglekar (Expert)
Follow

05 June 2015 For A company, it is NOT at all reimbursement of expenses. The withholding tax is very much applicable. So much so, in this kind of transaction, it is also exigible to service tax.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

05 June 2015 Yes it can claim exemption from withholding tax under reimbursement of expenses.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Join the CA Students WhatsApp Community for ICAI Updates, Trending Courses & Notes!

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

Rahul Kulkarni

suresh kotte

Shashank S Gore

chandradhass sathish

THOMAS JOHN

Subscribe Now

Tds on reimbursement of expenses

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

Senior Executive

Manager- Finance and Compliance

GST CONSULTANT

GST CONSULTANCY

Accountant

CA Final

Article Assistant

Associate CA