Tds on contract

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This query is : Resolved

Sarthak Mishra (Querist)
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13 August 2014 SIR I'M DOING AUDIT OF A FIRM IN WHICH TDS DEDUCTED ON A PARTY IS 2% AS PER CONTRACT BUT IN SOME CASES RATE DIFFERS TO 0.5%.SO HOWS IT POSSIBLE THAT ONE PARTY DEDUTES FROM 2 DIFFERENT RATES UNDER SAME SEC.
AS PER ACCOUNTANT THERE IS TDS CERTIFICATE PROVIDED BY PARTY SO ACCORDINGLY TDS @ 0.5% IS DEDUCTED.
SO PLEASE GUIDE ME ABOUT ABOVE QUERY.

pranav

pranav (Expert)
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13 August 2014 It will b mistake and u have to reportit inqueryshtt yorca

Rupesh Jain

Rupesh Jain (Expert)
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13 August 2014 it is possible due to if vendor obtained the certificate for income tax deptt. for lower deduction rate . in which amount and rate and your name also mention.

Sarthak Mishra

Sarthak Mishra (Querist)
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14 August 2014 Ya sure lower tds has been deducted. Due to tds certificate but one the other transaction tds has been deducted @ 2%..my ques is how it is possible to deduct tds at two different rates however he contains tds certificate for it department.

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