Royalty payment to Holding company situated outside India

This query is : Resolved 

29 April 2011 Dear Friends,
Is royalty payment made by Indian company to its foreign holding company an allowable expense in the hands of the indian company?

29 April 2011 YES, ALLOWABLE

07 May 2011 The TP issue needs to be checked here as the TPO may disallow the same based on study of comparative companies.

TDS is also required to be deducted on such payments.

Anuj
091-9810106211




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