A company is paying amount in foreign currency to a foreign company and its not holding or related party, the payment is for reimbursement of traveling and food expenses incurred by one of its staff in providing the services to company.

The service provided is free of cost and charges are only for cost incurred, there is no profit element included.

How much TDS should be deducted, if applicable?

This is required for issuing a form 15CB and form 15CA.

Posted 3 years, 11 months ago by Rahul Rai

No TDS required to be deducted as the same doesn't include any profit element and cannot be treated as fees for technical services. Refer Case Law Saipem S.A vs. DDIT 2012 54 SOT 111 Mumbai.

Further as per notification no. 93/2015 no 15CA & 15CB required if your transaction is not liable to tax and doesn't exceed Rs. 5,00,000 Rule 37BB has been amended. 


CA Bhuwan Sharma


Posted 3 years, 11 months ago by NRO0263978 BHUWAN CHAND SHARMA

Your Reply:

You need to be logged in to reply.