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Tds on foreign payments

TDS 229 views 2 replies

Dear Sir

We have a foreign payment for which we received the bills in 2013 booked and paid tds (10%) on the same in 2013 however the payment not made during the year due to some issues. Now we are processing the payment but due to change in dolllar rate the amount increased by Rs.7000/- and tds changed from 10% to 25% now. What will be the impact of tds on the payment. Please suggest.

Replies (2)
Liability to deduct TDS arise at the time of payment or credit in the account.

Assuming that the remittance is taxable, differential TDS amount has to be deducted before remitting

Thank you Mr.pranay, but now the issue is rate if tds chaged , so what will the % of tds on differencial amount raised due to dollar rate difference.


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