banner_ad

Applicable exchange rate for tds on forex payment

This query is : Resolved 
Profile Image

Profile Image

(Querist)
31 March 2009 A foreign vendor provided technical assistance to m/s ABC co., with a payment terms as follows $30,000 USD and tax is to be borne by the foreign vendor at applicable rate.

M/s ABC made a liability in its books on 31.03.08 and deducted tds u/s 195 of IT act at applicable rate and deposited the same to IT department.(Dollar rate as on 31.03.08 was Rs.40 per USD, say)

Now actual payment is to be made by M/S ABC co to that the foreign vendor(i.e., $30,000 USD). Dollat rate at the time of payment is Rs.46 per USD, Say.

Question is: Whether additional TDS is to bne deducted on the amount increased due to exchange rate fluctuation or not?
Profile Image

Tushar Yerawar

Profile Image

Tushar Yerawar (Expert)
31 March 2009 TDS is deductible at the time of credit or payment whichever is earlier.

As you have credited the sum on 31.03.2008 and deducted and remitted TDS no need to deduct the TDS on difference amount at the time of payment as the same is forex fluctuation.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now


CCI Pro
Join CAclubindia WhatsApp Finance Community & stay updated with the latest TAX news, compliance alerts and important updates all in one place!


Similar Resolved Queries


loading


Unanswered Queries


banner

Trending Online Classes

view all classess

CCI Pro
Meet our CAclubindia PRO Members
Subscribe Now

Follow us
add to google news



Answer Query



Quick Links



Browse by Category




Latest Job Openings

View all
Company
Featured 27 May 2026
Lead Conversion Executive / Sales Closing Executive

SMJ global advisors pvt ltd

New Delhi

B.Com

View Details
Company
26 May 2026
Education Content Creator

Adyayam Education LLP

Bengaluru

CA Foundation

View Details
Company
12 May 2026
Accounts Executive

Nafa Group

Mumbai

B.Com

View Details
Company
11 May 2026
AUDIT INTERN

M/S K.K.KHANNA AND COMPANY

Noida

CA Foundation

View Details
Company
19 May 2026
Fundraising Expert

MentorsWorld Ventures Private Limited

Ahmedabad

Others

View Details
Company
22 May 2026
U.S. Financial Reporting & Consolidation Manager

Karia Overseas

Ahmedabad

CA

View Details
Company
14 May 2026
Financial Analyst - Remote Finance Expert

HiringBridge

Ahmedabad

CA

View Details
Company
10 May 2026
Finance specialist

Right way solution

Ajmer

CA

View Details