Tds u/s 195
This query is : Resolved
07 April 2012
Dear Sir,
Whether TDS is applicable for reimbursement of expenses like communication,bandwidth charges, software maintenance charges, freight etc to a foreign holding company? This is purely a reimbursement of expense and no profit as such is added by holding company. This is reimbursement to a US holding company. If Tds to be deducted, what is the rate of deduction? Please answer ASAP.. It is urgent..
Whether TDS is applicable for reimbursement of expenses like communication,bandwidth charges, software maintenance charges, freight etc to a foreign holding company? This is purely a reimbursement of expense and no profit as such is added by holding company. This is reimbursement to a US holding company. If Tds to be deducted, what is the rate of deduction? Please answer ASAP.. It is urgent..
07 April 2012
Dear Sandeep,
If the foreign holding company proves it as reimbursement of expenses from the subsidiary company and all the relevant expenditure incurred at first instance by foreign holding company are debited to the subsidiary company then TDS u/s 195 is not applicable.
TDS U/s 195 is applicable only if it is income chargeable in India since it is not the income of the foreign holding company then there is no need to deduct the TDS.
It is pertinent to note that the foreign company proves that such expenses are incurred on behalf of subsidiary and provides necessary documents to substantiate the expenses incurred.
If the foreign holding company proves it as reimbursement of expenses from the subsidiary company and all the relevant expenditure incurred at first instance by foreign holding company are debited to the subsidiary company then TDS u/s 195 is not applicable.
TDS U/s 195 is applicable only if it is income chargeable in India since it is not the income of the foreign holding company then there is no need to deduct the TDS.
It is pertinent to note that the foreign company proves that such expenses are incurred on behalf of subsidiary and provides necessary documents to substantiate the expenses incurred.
Message likes :
1 times
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
- Post Office RD Interest
- Itr 1 processing
- Reporting Income under Section 44ADA
- Building and other construction workers welfare cess act 1996
- ITR validation error - Balance sheet is not filled
- Bank Accounts in Balance Sheet for ITR 3
- ITR 1: Details for showing Exempt Income
- TDS ON CASH WITHDRAWALS...
- LIC Annuity received under Jeevan Akshay Scheme
- Delisted shares sold in off market/ Rebate u/s87A
- Opting out" of regime provided under subsection (1A) of Section 115BAC but Form 10IEA is not filed.
- Difference in tax comparison report
- Gst invoice numbering and delivery challan numbering
- Sales amount in Gstr1
- E Commerce GSTR1 & 3B how to file
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
- Form10BD was uploaded successfully without any Error but after 24 hours, Form10BE are not available
- Annexure B utility for GST Refund
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
