Our office closed on March 25th due to COVID 9 pandemic and reopened on 20th May 2020. We have received an invoice on security service which is dated 01/04/2020 (expense for Mar'2020). Usually we are deducting TDS @ 2% under sec 194 C . My query is, new TDS rates which came to effect on 14th May 2020 is applicable on this case?.
Whether we have to deduct 2% or 1.5% ? New rates applicable on the basis of invoice date or invoice received date?
28 July 2020
It depends upon the date of the booking expense in the books of accounts. if you book that expenditure on and before 13/05/2020, then the old rate will apply, or if expense booked after 13/05/2020 (usually in the case of cash basis of accounting) then the new rate will apply.
CAclubindia
