16 July 2019
One of my client's vendors has obtained TAN Based Exemption certificate from Income Tax Dept. Original Tax Rate applicable on the vendor is 2 %. Exempted rate is 0.5% and exemption limit is 54 lacs. My query is suppose so far transaction of up to 52 lacs has been done with the vendor. Next bill amount is of 4 lacs. How shall TDS be calculated on this 4 lacs? i) 0.5% on 2 lacs and 2 % on remailning 2 lacs or; ii) 2% on whole 4 lacs
CAclubindia
