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TDS on foreign remittance

This query is : Resolved 

11 April 2009 An Indian company needs to pay to a group company in Switzerland its share in integration of Indian company in SAP system of the company. The bill for the same has been raised by the Group Company. Whether is it liable to TDS in India and under which clause of DTAA and at which rate?

Can this transaction be treated as reimbursement of expenses to the group company by the Indian company and hence no need to deduct tax at source is required?
Thanks.

03 May 2009 Authority for Advance Ruling has held that expenditure sharing by Group compnay would be liable for TDS deduction u/s195.

Accordingly Indian co has to deduct tax at source.



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