TDS query of vendor.

This discussion concerns a query about the applicable TDS rate for a contractor. An advance payment was made in FY 2019-20 with 1% TDS deducted. However, the vendor's bill was received in August 2020. The user is seeking clarification on whether the TDS rate should remain 1% or be adjusted to 0.75% based on the bill date. The response suggests that if TDS was already deducted in FY 2019-20, no further deduction is needed. If there's a difference between the advance and the bill amount, TDS should be applied at 0.75% only on that difference.