In some cases of Advance party payment in April'07 , we have deducted TDS on Professional fee on advance basis at existing prevailing rate @ 5% but when advance has being adjusted on June onwards after invoices come then the current exicsting rate has been increased (i.e @ 10%), IS again TDS deduction liability would occur on Advance amount at partial rate of increament(i.e @ 5%)?
TDS IS TO BE DEDUCTED ON AMOUNT PAID OR CREDITED WHICH EVER IS EARLIER. HENCE IN YOUR CASE SINCE YOU HAVE PAID AMOUNT BEFORE ENACTMENT @ 5 @ ITS CORRECT AND ON THE BALANCE YOU HAVE TO DEDUCT @ 10%
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