24 November 2011
My employer company has engaged some NRI as well as resident in india,consultants. We are to pay 1.consultancy fee and 2. out of pocket expenses in US$ My questions are as under: 1.Though we are to reimburse Out of pocket expenses in US$, but actually expenses are incurred in other currencies i.e.Euro, Pond sterling,Rubles INR.etc. what should be the conversion base of other curreincie into us dollars for payment purpose. how should we recognise the forex gain or loss on such payments.
2.On payment of consultancy charges to NRIs' a.at which rate TDS is to be deducted, b. how Forex gain or loss is to be recognised. c.what are service tax liabilities d.whether any certificate is to be obtained form a CA in this regard. e.whether any etds return is to be filed for this.
12 December 2011
1. You need not consider the exchange rate fluctuations. If the bills for the expenses incurred otherwise(even in other currencies ) are there, you should not deduct TDS on the same.
2. If PAN 10.51%otherwise 20%. b. Not required. c. Yes , d. Certificate from CA is required before remittance. e. Yes.
13 December 2011
Thanks Sir,may I request you to mention the provisions regarding this case for non applicability of AS-11 and which Act/provision/section requires to get certification from a CA before remittance of the TDS u/s 195-With Regards,Satyander
CAclubindia
