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We are an Indian company. We invite a South African company for training some software system. They claim their travelling expenses in US dollars. Will any taxes be deducted?

Section 195 which deals with deduction of tax at source from payments made to non-residents, including foreign companies, makes it clear that tax is required to be deducted only to the extent such payments comprise income chargeable to tax in India. Reimbursement of travel expenses therefore is immune from TDS requirement.

S. MURLIDHARAN

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