One of my vendor has given me a certificate for lower deduction of TDS @ 1.40% under the IT Act, 1961 and a limit of Rs.2 Crores. We deducted TDS under that lower rate. Now during the FY ended 31-3-2010, the vendor has exceeded the limit of Rs.2 crores.
Kindly advice to us whether the maximum rate of TDS to be deducted by us should be from the limit of Rs.2 Crores.
31 March 2010
As per my knowledge it will be for the entire amount. same rules of TDS deduction. tht if limit is crossed that have to deduct TDS on the whole amount. Pls also take other advice
CAclubindia
