TDS Non resident taxation

This query is : Resolved 

07 June 2010 ABC LTD is a company incorporated in US having subsidiary all over the world. It has a subsidiary B LTD in INDIA. The Parent company ABC Ltd purchased Microsoft license for Microsoft products used by all its subsidiary. The license is valid for ONE year. The cost of license is apportioned between all the subsidiary based on the number of users in each subsidiary.. The INDIAN subsidiary on its part reimburses the License fee to the Parent company and charges the same as computer maintenance expense.. My question is whether TDS gets attracted on the reimbursement made by the INDIAN subsidiary to the parent company

08 June 2010 Hi,

In my view no tax will be deductible as the reimbursements which the US company is receiving is not an income chargeable to tax in India. Same view has been taken in the cases of Van Oord ACZ and Prasad Productions.

Best Regards

Ankit Gangwani



You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Join CCI Pro
CAclubindia's WhatsApp Groups Link


Similar Resolved Queries


loading


Unanswered Queries