The assessee was subsidiary of Japanese Company .Reimbursement of expenses to its parent company.AO held it to be payment for Fees for Technical services and disallowed the same u/s. 40(a)(i) as the assessee failed to withhold tax u/s. 195  of the Act. Terms of assignment agreement between parent company and assessee made it clear that assigned employees, in respect of whom, disputed payments had been made by assessee were under complete control and supervision of assessee during tenure of assignment agreement and thus, there was employer-employee relationship between assessee and assigned employees. Reimbursement of expenses made by assessee to its parent company for salary paid to expatriate employees, was in nature of salary cost and was subjected to TDS under section 192, such reimbursement could not be treated as FTS under section 9(1)(vii) and article 12 of India Japan DTAA .(AY. 2015-16)