Rate for TDS on commission u/s 194H is 10.3% for payments upto Rs.10 Lakhs to individuals and and upto Rs.1 crore to companeis and firms 11.33% if the payments to Companies and firms exceed Rs.1 crore and for individuals exceed Rs.10 Lakhs.
No TDS is required to be deducted for payments up to Rs.2,500/- for the year.
When company gives advance it will not show as expendeture, so Sec40A(3) will not attract. If the company recovers that advance, then also this section will not attract. But After some time if the company shows it as expendeture, then Sec 40A(3) will apply.