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| The Tax Publishers2020 TaxPub(DT) 0715 (Mum-Trib) INCOME TAX ACT, 1961
Section 195
Entire salary pertaining to expatriate employee had been subjected to TDS under section 192 and therefore, no tax was required to be deducted again at the time of reimbursement of salary cost to Rochi group companies, otherwise, same would result in double taxation, i.e., one at the time of payment of salary to employees in India and second at the time of reimbursement to group companies.
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Tax deduction at sources - Under section 195 - Payment to non-resident group company towards reimbursement salary of expatriate employee - Entire salary subjected to tax under section 192
Assessee claimed deduction of payment made to Roche Inc., USA towards reimbursement of salary of non-resident. AO denied deduction for want of TDS under section 195.Held: Entire salary pertaining to expat employee had been subjected to TDS under section 192 and therefore, no tax was required to be deducted again at the time of reimbursement of salary cost to Rochi group companies, otherwise, same would result in double taxation, i.e., one at the time of payment of salary to employees in India and second at the time of reimbursement to group companies.
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2011-12
INCOME TAX ACT, 1961
Section 195
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