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TDS query of vendor.

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kumara swamy

accontant

35 Points Posted on 30 September 2020

Dear sir, I have query to TDS. I paid advance to contractor in FY 2019-20,TDS amount less 1%. vendor has given bill on August 2020. which TDS rate is applicable to vendor??
either 1% or 0.75%?

Please help me sir.

Replies (2)

Quick Summary

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.

CA ABHAY GUPTA

Practice

1639 Points Posted on 30 September 2020

In case TDS deducted already in FY 2019-20 then no need to deduct tax now, in case there is difference in bill amount and advance amount then in that case tax need to be deducted at .75% on difference amount only.