Reimbursement of pre-incorporation expense - TDS?

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vasudevan (Querist)
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15 December 2009 US Company is the holding company which set-up a subsidiary company in India and incurrs all pre-incorporation related expenses.

Now, when the subsidiary company REIMBURSES the pre-incorporation expense to the holding co, should it deduct tax u/s 195.

Any case law reference?

M Prabhakar Menon

M Prabhakar Menon (Expert)
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16 December 2009 Tds provisions does not include reimbursements

vasudevan

vasudevan (Querist)
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17 December 2009 No...in certain case, even reimbursement partakes the character of the actual expenses.

Any input on recent karnataka HC in the case of Samsung Electronics....any remedy?

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