The Dilemma of Tax at Source (TDS) & Exchange Rates!

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A foreign vendor provided technical assistance to M/s. ABC co. with a payment terms as follows. $30,000 USD and tax is to be borne by the foreign vendor at applicable rate. M/s. ABC Co. made a liability in its books on 31.03.2008 and deducted TDS u/s 195 of IT Act at applicable rate and deposited…