We want to make a business deal with an Foreign Company for which Registeration in " Category "A" Foreing Contractor " is required.
Is there any liabilty to deduct TDS?
Also while filling 15CA, there need to enter Value in INR, how it will be determined because everyday Bank Exchange Rate revised.
TDS liability will be applicable on the basis of work.
you only told that he is contractor so can't say exactly on that basis.
TDS is applicable u/s 195 on foreign contracts.
in 15CA you need to mention exact amount of foreign currency. but INR can be estimated. it is not required to be exact.
Thank You............
As per Nigeria Govt Tax Rules, Registration in " Category "A" Foreing Contractor " is required & we are paying that fees directly to Nigeria Govt.
I feel that no TDS should be deducted in the present case.
Also Rule 26 of income tax rules provides that SBI TT buying rates should be taken for conversion of foreign currency in Indian rupees.
anuj
femaquery @ gmail.com
CAclubindia
