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%
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.
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