Tds u/s 195

This query is : Resolved

Sandeep Jain (Querist)
Follow

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..

CA CS Amit S. Kedia

CA CS Amit S. Kedia (Expert)
Follow

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.

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

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 SURANA

Hanuma Yanduri

MEHUL M. KEVAT

Sharad Jain

velichety.l.narasimharao

Subscribe Now

Tds u/s 195

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

Manager- Finance and Compliance

CA Final

GST CONSULTANT

Accountant

GST CONSULTANCY

Senior Executive