TDS DEDUCTION
This query is : Resolved
RAVI CHAUHAN
(Querist)
05 April 2010
Respected sir,
A foreign company has raised a bill in foreign currency for services provided abroad. Can an Indian Company make payment in Indian curency to the above said foreign company and deduct TDS as per the provisions of Section 194 which is 2%
A foreign company has raised a bill in foreign currency for services provided abroad. Can an Indian Company make payment in Indian curency to the above said foreign company and deduct TDS as per the provisions of Section 194 which is 2%
VIKAS AGGARWAL
(Expert)
05 April 2010
Dear Ravi,
as you are making payment to Non resident the provision of section 195 are applicable for tax deduction. As bill is raised in foreign currency you need to check FEMA provisin whether payment can be made in indian currency or not. Please send the details of transaction to decide the applicable rate u/s 195 and also provide the details of country of the payee is tax resident.
as you are making payment to Non resident the provision of section 195 are applicable for tax deduction. As bill is raised in foreign currency you need to check FEMA provisin whether payment can be made in indian currency or not. Please send the details of transaction to decide the applicable rate u/s 195 and also provide the details of country of the payee is tax resident.
06 April 2010
AGREE
CA Ravi Sisodia
(Expert)
06 April 2010
Agreed..
CMA Arif Farooqui
(Expert)
10 April 2010
Agreed..
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