With effect feom 01.10.2009, tds rates u/s. 194C has been reduced to 1% for individuals and HUF. If part payment of a bill was made in September deducting 2% tds and balance payment is to be made in October, then tds should be deducted at what rate.
21 October 2009
Thank you for the reply. The expenses paid earlier were not advance payment. They were against part payment of the same bill whose balance will be paid now.
Just want to add that if you have booked the entire expenses in Sept'09 and credited the receipient in Sept'09 then you have to deduct at old rate as sec 194 says paid or credited whicever is earlier.
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