TDS after 14.05.2020

If I raise an invoice with tds on 25.04.2020 subject to approval from management and the same gets approved after 14.05.2020, should the TDS rate change (25% less).

please note that payment is made only after approval.

I am confused if old rate or new rate of TDS will apply. Kindly clarify the same.
Replies (5)
Quick Summary
This discussion clarifies the applicable TDS rate for an invoice raised before 14.05.2020 but approved and paid afterwards. Under Section 194C, TDS is typically deducted at the time of credit or payment, whichever is earlier. Given the Income Tax department's press release, TDS on amounts paid or credited from 14.05.2020 onwards will be at reduced rates. Therefore, if the TDS is credited and paid after this date, the reduced rate will apply.

What  for you are  deducting  TDS ?   , will you please mention  section . 

Under which section your TDS is getting deducted?
Because in some sections TDS is deducted at time of making payment or at the time crediting the account of payee whichever is earlier. So please mention under which section your TDS is getting deducted and also mention whether the management (i.e. payer) has made entry in their books of account to your account(i.e. payee) before 14-05-2020.
Thank you so much for the response. TDS section is 194 C and no entry is made in the books before 14.05.2020
As per section 194C, the Deductor is required to deduct TDS within earlier of the following dates –

At the time of credit of sum to the account of the Contractor; or

At the time of payment in cash or cheque or draft or any other mode.

Further, as per the yesterday's press release of Income Tax department - TDS on the amount paid or credited during the period for 14th May,2020 to 31st March, 2020 shall be deducted at the reduced rates.

So in your case since your TDS will be credited and paid after 14th May, 2020, it will be deducted at reduced rates.

Keyur Sukhwani
9601006671
@ sukhwani keyur thank you so much for your inputs. You have given a good clarity of the section for me to understand.

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