No TDS on Reimbursement of Leased Line Expense to Parent Company

DCIT Vs International Flavours & Fragrances (I) P. Ltd., (ITAT Chennai) ITAT Chennai ruling on reimbursement of communication expenses to foreign company and managing sales affairs outside India by International Flavours & Fragrances. Where assessee-company reimbursed community expenses to foreign company for utilising leased lines services situated outside India, said payment not being in nature of ‘royalty’ within meaning of section 9(1)(vi), assessee was not liable to deduct tax at source while making payment in question FULL TEXT OF THE ITAT JUDGEMENT These three appeal...