Tds applicability on purchase of foreign currency & leased l


Querist : Anonymous (Querist) 26 October 2011

Hi All,

1)Can someone please tell me if TDS has to be deducted on purchase of foreign currency to be given as per diem allowance to employee's travelling to parent company.

Also, is there any limit on the per diem allowance payable overall or to an employee in any given Financial Year.

2) Is TDS applicable on payment made to vendors providing internet connection specially leased lines.

3)Is it mandatory for a pvt ltd company in India which is a subsidiary of parent company to maintain Fixed Asset Register mannually apart from the excel sheet maintained giving details like Invoice #,date of purchase,amount,depreciation charged, etc.


Vishal D Shah (Expert)
27 October 2011

1) In case of payment for purchase of Forex from authorised dealer for legal purpose, no TDS needs to be deducted. Since employee is still resident & employee of Indian subsidiary, TDS on his salary income would be deducted as if he is deputed in India itself.

Querist : Anonymous (Querist) 31 October 2011

Hi All,

Can someone further explain adding to what Mr.Vishal has mentioned.

As mentioned by Mr.Vishal am I supposed to add the per diem allowance to the salary of the employee and then deduct TDS.

Thanks in advance.

Querist : Anonymous (Querist) 05 November 2011

Hi All,

Can someone please answer to the above at the earliest.


Vishal D Shah (Expert)
05 November 2011

As per my knowledge, there is no limit for per diem allowance paid.

There is no compulsion to maintain FAR manually too in addition, if maintained in excel.

Querist : Anonymous (Querist) 05 November 2011

Hi All,

Can someone please give answer to all the queries raised.

Thanks in advance.

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