As per section 206AA the TDS rate has been made effective @ 20% w.e.f 1st Aril 2010 if the Foregin company fails to produce PAN card.
We have rendered service to a company till 31st March 2010 and have nuliified our contract since 1st April 2010. The company owes us money for service provided from December 2009 to 31st march 2010.
In this case what will be the rate of TDS. Will it be 10.33 % which was earlier or will they deduct us @ 20% [but as per our understanding this is effective from 1st April 2010].
Our company doesnt have a Indian PAN card.
CAclubindia
