TDS on payment to overseas consultants

[Shyam Naik]

Dear All, Our employees visit foreign countries for visiting mines. They hire /engage local guides & geologists during the course of field visit. Our employees pay the remuneration of the guides and geologist there only. The employee claim the remuneration paid along with their trave expenditure. Does the above payment of remuneration attract TDS u/s 195? Kindly reply. Thank you. Shyam

[Ganeshan Kalyani]

In the above situation you have reimbursed the expenses borne by your employee abroad. Being reimbursement TDS should not be applicable. However I welcome experts views on this.

[CSSANJAY MALHOTRA]

Endorse the views of Sh. Ganeshan Kalyani ji.

AI Summary

Are reimbursements for employee payments to local guides overseas subject to TDS under Section 195? Experts weigh in. An inquiry was raised about whether payments made by employees to local guides and geologists during overseas field visits are subject to Tax Deducted at Source (TDS) under section 195. The payments are reimbursed by the company as part of travel expenses. One respondent stated that since these are reimbursements, TDS should not apply, while another agreed with this assessment, seeking further expert opinions.