Q. TDS U/S 195 - reimbursement of expense

Question

An Indian company is planning to buy machinery from a German company. As a part of the sales process, the German company has invited the director of the Indian company to visit its factory in Germany to see a demonstration of the machinery. The German company has proposed that they will cover the travel and accommodation costs for the Indian director's visit. However, they have set a limit: any expenses above 100,000 rupees will be paid by the German company itself. For the expenses up to 100,000 rupees, the German company will send a bill (debit note) to the Indian company. Given this arrangement, is there a requirement for the Indian company to deduct tax at source (TDS) under Section 195  when they pay the 100,000 rupees to the German company?

Answer 1

Whether this reimbursement is subject to order being confirmed by Indian company or not?