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Transactions in USD

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Marimuthu

Manager

528 Points Posted on 26 September 2022

Experts,

1. We are going to avail the professional service from foreign country.

2. For that we are paying the advance amount (60℅ of the total transaction value) by converting USD into INR.

3. This amount will be getting credited into their branch account, which is located in Mumbai.

4. My Query :

a. Whether TDS under section 194C will attract for this transaction

or

b. 194J TDS on professional service will attract.

Pl clarify.

Replies (2)

Quick Summary

This discussion seeks clarification on whether TDS under Section 194C or 194J applies to an advance payment made in USD for professional services from a foreign country. The payment is converted to INR and credited to the foreign company's Mumbai branch. The content suggests Section 194C typically applies to works or labour contracts with resident contractors, not goods supply, and advises seeking expert opinion.

Yasaswi Gomes new

Finance

4592 Points Posted on 26 September 2022

Application Of Section 194C

The provisions outlined under Section 194C of the Income Tax Act are only applicable to either

Works Contracts
Labour Contracts

However, it is not applicable to any contract that deals with the sale of any goods or solely the supply of any goods or products. 194 c is applicable to only resident contractors.