01 July 2010
what should be the rate of foreign exchange at which we should convert a foreign bill for calculating and paying TDS in the government account. where can i find the information of procedure for depositing TDS on foreign payments.
Rule 26A of the IT Act provide that payment of TDS liability the exchange rate prevailing at the date of making provisions need to be considered and not the rate prevailing at the date of payment. So you can go ahead with the payment at the provision amount. Please see the rule 26A for further details.
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