Tds under section 195

This query is : Open

Puneeth.H (Querist)
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14 June 2014 Dear ALL,

Is TDS deductable on payments made to Foreign Educational institutions in foreign currency on director's educational course, which is claimed as Business expense?

Case Analysis: The director of a company is pursuing educational course in UK for which the company has paid the educational fees, and claimed the same as business expenses.So, now is this transaction liable for TDS u/s 195?

Amol S Joglekar

Amol S Joglekar (Expert)
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14 June 2014 Although for the education of child, RBI has clarified that 195 TDS may not be made....but this being a business transaction, it is better that TDS be done u/s 195. (The practical application of this could be....company may have to bear the TDS as the educational institute may not settle for net of TDS amount) Your views please

Puneeth.H

Puneeth.H (Querist)
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20 June 2014 Dear Amol,

I share the same view, so accordingly the company has also not complied with Form 15CA and Form 15CB. Is'nt?

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Puneeth.H

Puneeth.H (Querist)
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23 September 2014 Since the amount paid is not chargeable to tax in india for the non resident, why should he be subjected to tax in india, in the form of TDS?