TDS

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This discussion clarifies how to calculate Tax Deducted at Source (TDS) when a vendor provides a lower deduction certificate. The lower TDS rate of 0.20% applies up to the specified limit of Rs 5.5 Lakhs. Any amount exceeding this limit will be subject to the normal TDS rates as per Section 194C (0.75% or 1.5%). It's also confirmed that GST, when charged separately, is excluded from the TDS calculation.

K BHEEMA REDDY

K BHEEMA REDDY (Querist)
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11 February 2021 Dear sir/Madam,

I have one doubt regarding deduction of TDS .
one of my Vendor Submitted Lower deduction certificate for deduction of TDS upto Rs 5.5 Lakhs TDS Rate will be 0.20%
here vendor is raised one invoice Basic 1.8 Lakhs+gst 32.4K=212.4K.
and another invoice is raised for Rs 4 Lakhs+gst 72K=472K.

while calculating tds amount on how much amount Lower rate will be applied (i.e 0.20%) and on how much amount Normal rates will be applied (0.75% or 1.5% as per sec 194C)

Please Reply me as early as possible
Thanks in advance,
Regards,
Bheema Reddy.