TDS on reimbursement to foreign branch
This query is : Resolved
K R Sivaraman
(Querist)
15 April 2009
Dear Sir,
We are an MNC having branches all over the world.
We have personnel traveling from our Group Companies to India for helping us on certain issues and so also we have our staff traveling to attend meetings, training to our Group offices.
Our Group Companies' raise invoice on us for the expenses incurred on our behalf (reimbursement) and we settle the same.
Off late, our bankers ICICI insist on a CA certificate for all remittances even when the invoices are supported by third party invoices for hotel stay, travel etc.
My CA insists that TDS will be applicable even for such reimbursement of expenses, which I disagree.
I would appreciate if somebody can throw light on this and let me know the provisio under which this is taxable or not taxable
regards
Sivaraman
We are an MNC having branches all over the world.
We have personnel traveling from our Group Companies to India for helping us on certain issues and so also we have our staff traveling to attend meetings, training to our Group offices.
Our Group Companies' raise invoice on us for the expenses incurred on our behalf (reimbursement) and we settle the same.
Off late, our bankers ICICI insist on a CA certificate for all remittances even when the invoices are supported by third party invoices for hotel stay, travel etc.
My CA insists that TDS will be applicable even for such reimbursement of expenses, which I disagree.
I would appreciate if somebody can throw light on this and let me know the provisio under which this is taxable or not taxable
regards
Sivaraman
G Muralidharan
(Expert)
03 May 2009
u/s195 Tax will have to be deducted. Your CA is right in this regard.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- GST REFUND ISSUE ON PURCHASE OF PLANT AND MACHINERY
- WRONG GSTR7 ENTRIES ACCEPTED ERRONEOUSLY
- Expert Help Required for TDS Refund 100000 Through TRACES – AY 2022–23
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
