No TDS on Expense Reimbursement under Mutual Agreement between Entities

It is debatable to review the appropriateness of the application of the mutuality principle as an instrument of Government policy. The position can easily be understood in a very simple way as referred by Hon’ble Delhi High Court in Yum! Restaurants (Marketing) Private Limited versus Commissioner of Income Tax (ITA No.1433/2008 dated 01-04-2009). The brief facts as summarized is that : Parent company , having license arrangement with foreign companies , used to market ready to eat food items through franchisees, formed a new subsidiary company to take care of publicity on behalf of the franc...