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Exchange rate for tds on nri

Mahender Jain (Accountant) (101 Points)

03 February 2016

We received service invoice from NRI on date 31.01.2016 for Prof service rendered by NRI from Apr'15-Sep'15 So Which date Exchange rate should be taken for TDS i.e. Exchange rate on dt 30.09.2015 or 31.01.2016

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Venkateswar Reddy (Audit Assistant) (195 Points)
Replied 03 February 2016

TDS needs to be deducted on credit or payment whichever is earlier. So Foreign Exchange rate also to be considered on the date of booking the Expense or Payment made whichever date is earlier.

So in this case, Foreign Exchange rate on 31.01.15 can be considered.