X company limited, a resident of india enters into a mutual marketing agreement with y company a resident of china. as per agreement both the companies share 50% of the total cost of marketing incurred in china. for this purpose chinese company initially pays the marketing guys salary, their travel expenses, incentives and claims 50% from indian couterpart. Whether the reimbursement of the marketing expenses attract tds provisions? whether such expenses will be treated as fees for technical services or other income as per DTAA with China.
Vinod.
CAclubindia
