TDS RATE CHANGE FROM 14.05.2020

This query is : Resolved 
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Following a 25% TDS rate change announced on 14.05.2020 for sections like 194C and 194J, a query arose regarding its applicability based on invoice or payment dates. The consensus is that the new TDS rates apply to all payments made or sums credited after the amendment date, regardless of when the invoice was booked.

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(Querist)
21 May 2020 Dear All

As announced by Honble Finance Minister, the TDS rate has been change by 25% on various sections like 194 C and 194J. Please confirm whether the deduction is applicable with respect of Invoice date or Payment date. Some clients have booked Invoice before 14.05.2020 and when payment is given after 14.05.2020 are still deducting 2% (194C).

Please help to get a clarity. Thank you in advance.
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CA R SEETHARAMAN

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CA R SEETHARAMAN (Expert)
21 May 2020 Deduction is applicable with respect to payment date in this case. New TDS rate applicable for all payments made after 14th.
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Prakash Kochar

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Prakash Kochar (Expert)
22 May 2020 New amended provisions are applicable for all sums credited or paid after date of amendment.
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