Tax deduction at source

[puneeth Honnappa]

Dear All,

Is TDS deductable under section 195 on payment made to foreign institutions as fees for Director's education?

Case Analysis: A director of a company has is pursuing education in US and the company has paid the fees for such educational course, however the same has been claimed as business promotion expenses in the books of accounts, but the payment made is not subjected to TDS.

[DR.MARIAPPAN GOVINDARAJAN]

Whether you have got clarified in the above issue? If not please inform.

AI Summary

Tax deduction at source on payments to foreign institutions for a director's education raises withholding obligation under cross border payment rules. Whether a company must deduct tax at source on payments to foreign educational institutions for a director's course is questioned; the fee was treated as a business promotion expense but no TDS was deducted, raising whether cross border payments for a director's education attract withholding obligations under domestic rules for payments to nonresidents.