TDS on Foreign Currency Payment to Indian Company

Deepshikha Sharma (Tax Manager) (137 Points)

07 February 2022  

We are supposed to make a payment to an Indian shipping agent and that agent has offered a discount if we pay him directly in USD instead of INR. 

I wish to know on which value the TDS will be calculated.Whether we need to convert USD to INR then deduct TDS then convert it back to USD. Also, on what date shall we calculate the exchange rate for conversion to INR.