One of my client has paid rent in advance for the period Nov09-July 10 in the month of Sep 09. Rates of TDS was revised in Oct 09. My client has deducted tds at revised rate for the amount of rent paid in sep 09. Now the problem is at what rate the tds should be deducted i.e. @ 15.45% or 10%. Please advice me asap.
18 September 2010
TDS is deducted on the date of payment or credit whichever is earlier. So if TDS is deducted on advance payment then TDS should be deducted at the rate prevailing on the date of Advance Payment.
CAclubindia
