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

(1) For the purpose of deduction of tax at source on any income payable in foreign currency as specified in subrule (2), the rate of exchange for calculation of the value in rupees shall be the telegraphic transfer buying rate of such currency as on the date on which such tax is required to be deducted under the provisions of Chapter XIX-B of the Act; but where the telegraphic transfer buying rate is not published on such date, the last such published rate may be taken.

(2) The provisions of sub-rule (1) shall be applicable in respect of income payable—

(a) to an assessee outside India; or

(b) to a Unit located in an International Financial Services Centre; or

(c) by a Unit located in an International Financial Services Centre, to an assessee in India.

(3) For the purposes of this rule,—

(a) "International Financial Services Centre" shall have the same meaning as assigned to it in section 2(q) of the Special Economic Zones Act, 2005 (28 of 2005);

(b) "telegraphic transfer buying rate", in relation to a foreign currency, means 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, 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; and

(c) "Unit" shall have the meaning assigned to it in section 2(zc) of the Special Economic Zones Act, 2005 (28 of 2005).