Reimbursement of pre-incorporation expense - TDS?


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?

16 December 2009 Tds provisions does not include reimbursements

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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