Remittance in foreign currency within india.

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

31 October 2011 Hi All,

Can someone please tell me what is the procedure for remitting foreign currency to a vendor for testing our software and issuing certificate within India.Also please confirm if I have to deduct TDS u/s 194J @ 10%.

Should I ask the vendor to accept the payment in INR equivalent and raise an invoice on us for INR value.

Thanks in advance.

Querist : Anonymous

Querist : Anonymous (Querist)

31 October 2011 Hi All,

Can someone please tell me the same at the earliest.

Thanks in advance.

chetan soni

chetan soni (Expert)
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31 October 2011 See this is an inter country transaction, logically it should happen in base currency of such country. Now in your case, you should have that vendor to raise an invoice on you in the base currency i.r. INR. You also need to deduct an TDS u/s 194J @ 10% on such fees.

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