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pleae help

CA. Vipin Gupta (Accounts Officer) (146 Points)

04 January 2010

1. what will be the conversion rate of EURO into rupees for the purpose of filing into form 15CB

2. whether surcharge and education cess is to be mentioned on form 15CB while mentioning rate of TDS in form 15CB

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10 Replies

CA. Vipin Gupta (Accounts Officer) (146 Points)
Replied 04 January 2010

i am talking about form 15CB of income tax act (certificate from Chartered Accountant for foreighn Payments)

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sivaram (Asst Mgr-Taxation) (6918 Points)
Replied 04 January 2010

I think the rate will be on the date when you are going to remit the payment to the exporter and the certificate from Chartered Accountant should mention the with holding tax rate applicable if not covered by DTAA along with Surcharge abd Cess

CA Jayesh Gokalgandhi (CA in Industry) (126 Points)
Replied 04 January 2010

The amount (currency x rate) mentioned in Form 15CB will be at the same rate at which the transaction is being booked in the books.

Surcharge and Education Cess are not applicable and hence need not be mentioned in the form 15CB..

CA. Vipin Gupta (Accounts Officer) (146 Points)
Replied 04 January 2010

my question is that from where i take conversion rate whether its tt buying rate or something else

Shudhanshu Agrawal (Business) (2570 Points)
Replied 04 January 2010

According to me conversion rate should be taken from RBI website

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sivaram (Asst Mgr-Taxation) (6918 Points)
Replied 04 January 2010

Originally posted by : Shudhanshu
	According to me conversion rate should be taken from RBI website

correct statement

Amir (Learner) (4016 Points)
Replied 04 January 2010

Dear Vipin,

Answer to ur query lies in Rule 26 which is produced as follows:-

Rate of exchange for the purpose of deduction of tax at source on income payable in foreign currency.

For the purpose of deduction of tax at source on any income payable in foreign currency, the rate of exchange for the calculation of the value in rupees of such income payable to an assessee outside India shall be the telegraphic transfer buying rate of such currency as on the date on which the tax is required to be deducted at source under the provisions of Chapter XVIIB by the person responsible for paying such income.

Explanation : For the purposes of this rule, “telegraphic transfer buying rate”, in relation to a foreign currency, means ⁷⁷[the rate or rates of exchange] adopted by the State Bank of India constituted under the State Bank of India Act, 1955 (23 of 1955), for buying such currency ⁷⁸[, having regard to the guidelines specified from time to time by the Reserve Bank of India for buying such currency,] where such currency is made available to that bank through a telegraphic transfer.]

Ramavtar Tiwari (Partner) (28 Points)
Replied 04 January 2010

For all practicle purposes, average rate quoting that specific date is taken . For this, you may take average rate from fxstreet.com.

R. A. Tiwari

CA Jayesh Gokalgandhi (CA in Industry) (126 Points)
Replied 04 January 2010

Amir is right, You are suppose to take the SBI Rate (Selling rate not buying rate.. i can elaborate if req.) however this rate is difficult to get..

Practically we take the rate from www.fxstreet.com or www.xe.com (these two are reliable sites) and book the transaction. I dont see the need to take the average rate as the rule requires computation based on rate prevalent on the date of deduction of TDS