sec 195 - TDS

Gokulakrishnan (Partner @ B.P.Rao&Co) (40 Points)

11 November 2009  

 A  non resident gets the reimbursement of expenses met  outside India for the services rendered by him, from a company (Service is rendered outside India). However he does not charge any fee for his service. It is only a mere REIMBURSEMENT OF ACTUAL EXPENSES MET.(say for eg. Telephone charges, car expenses)

In such a case whether the company reimbursing the expense should deduct TDS? Whether  TDS u/s 195 is applicable?.