TDS BASE AMOUNT

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This query is : Resolved

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This discussion clarifies the application of TDS rates when a vendor provides a lower deduction certificate. The key issue is determining whether to apply the lower rate to the entire amount or only to the portion after the certificate's effective date. The consensus is to deduct TDS at the normal rate for services rendered before the certificate's effective date and at the lower rate for services provided thereafter, based on the payment or credit date.

A K SARMA

A K SARMA (Querist)
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23 January 2023 One of our vendor has submitted lower deduction certificate for deduction of TDS w.e.f. 13.04.2022 to 31.03.2023. He has submitted the bill for April 22 to June 22 with Invoice Dt.04.07.2022 in Jan-2023 for which the payment to be released in January 2023. in this case, whether the TDS deducted to be with the Lower rate for the entire amount as the date of payment/credit to the Vendor account is Jan-2023 or old rate to be applied on the amount pertaining for the period form 01-12th April 2022 and lower rate on the rest of the amount.