TDS On Foreign Remittance - CiteHR
Saswatabanerjee
Partner - Risk Management
Pon1965
Construction
+1 Other

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kindly clarify
a company doing placement consultancy to foreign countries,
Invoice raised during the month of may 15 but we get payment during the month of june 2015 (the currency value differ time to time) and we get bank remittance on current currency value
a. TDS is deducted on which invoice amount or the remittance amount in bank.
b. rate of TDS & ECESS
c. section of income tax 194J is right

HI
TDS will be deducted on Invoice Amount.
Generally rate of TDS is 10% under section 194J
Section 194J of Income Tax Act is for Professional service and it is right.
I have few queries:
Do your customers are from India?
Do they have their own office in India?
Do they have Indian TAN number to deduct and deposit Tax?
if yes to above queries, then everything is fine else share more information then we can help you out to understand it

You are doing placement for foreign companies.
You are raising bills and getting paid.
TDS deduction is the work of the person paying you.
It is not your work to get TDS. If the client pays you without deducting, you do not have a problem. A foreign company not having a place of business in India is not covered under the TDS rules for payment made directly by them to you.

we are raising bill for the placement we done in outside country
suppose we place a person in Oman on 13/05/2015 we raise the bill for 100 omani rial on the same day and send to the client.
100 omani rial x 165 indan rupees (rate on 13/05/2015) = Rs. 16500
but we get this payment during the month of june 2015 by bank transfer
100 omani rail x 170 indian rupees (rate on 14/06/2015) = rs 17000
now the point is whether TDS calculated on 16500 or on 17000

we are raising bill for the placement we done in outside country
suppose we place a person in Oman on 13/05/2015 we raise the bill for 100 omani rial on the same day and send to the client.
100 omani rial x 165 indan rupees (rate on 13/05/2015) = Rs. 16500
but we get this payment during the month of june 2015
100 omani rail x 170 indian rupees (rate on 14/06/2015) = rs 17000
now the point is whether TDS calculated on 16500 or on 17000

That's the whole point Mohan, there is no TDS.
It's not your responsible as the payee to deduct or pay TDS
It's the responsibility of the payer. So if he has not deducted TDS (it's not a requirement in Oman and he is not in india) so he does not need to deduct.

i really don’t know what is exactly deducted by CA.. on the FIRC and deposited to income tax department, in india
We recruit from India for our operations in Africa and South East Asia We never deduct TDS, since it is not a statutory requirement in the countries we operate. The consultant makes the payment of taxes to the government on the amount received as fees. Neither are we charged service tax, since Indian consultants are exempt from service tax for foreign income.
Hi,
80RRA of the Income-tax Act grants a deduction at the specified rate in respect of an income being remuneration received by an assessee in foreign currency from any employer for any service rendered by him outside India.
Read the relevant section of IT Act

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