I have to make payment to US based firm for a technical certifacate issued for approx. 500 USD. What rate of TDS shall be charged? As the pyment is for 500 USD, shall it be grossed up. How can the same be shown in TDS return filed by 15th July.
VIkas (CA) (112 Points)
19 April 2010I have to make payment to US based firm for a technical certifacate issued for approx. 500 USD. What rate of TDS shall be charged? As the pyment is for 500 USD, shall it be grossed up. How can the same be shown in TDS return filed by 15th July.
Shudhanshu Agrawal
(Business)
(2570 Points)
Replied 19 April 2010
TDS will be deducted under section 195 and it will be deducted on converting USD 500 into Rs. by multiplying exchange rate prevailing on the date of booking the entry or on the date of payment whichever is earlier.
CA Babit Khurana
(learning is my passion)
(338 Points)
Replied 19 April 2010
Tds should be deducted as per section 195 of income tax act 1961. Tds should be deducted on the amount of usd converted into rs @ preveling on the date of booking of entry or payment which ever is earlier. There is a seprate Tds return format known as from 27Q on which return is filled with ITD.
B KANRAR
(SERVICE)
(57 Points)
Replied 19 April 2010
There is process u/s 195
I attach the file for ur help
Master GSTR-9 and 9C with India's First Unique Live Course with Live practical training
LIVE Form 10 B and Form 10BB: Handle Tax Audit Reports of Charitable Organizations(without recording)
CAclubindia
