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.

AI Summary

Uncertainty Over TDS Applicability on Payments for Director's Education Fees Abroad Under Section 195 A query was raised regarding the applicability of Tax Deducted at Source (TDS) under Section 195 on payments made to foreign institutions for a director's education fees. The director is studying in the US, and the company has recorded the fees as business promotion expenses without deducting TDS. A response inquired if the issue had been clarified, indicating ongoing uncertainty or discussion about the tax treatment of such payments.