We are providing services to a MNC Bank. They were deducting the TDS at the normal rate of 2.2% in the last year. This year they are deducting at an enhanced rate of 12.236%. Consequently, the TDS on receipts is on the high side and we estimate a huge refund by the IT. We want to know whether we can approach the IT department to permit our clients to deduct TDS at a lesser rate so that refund can be avoided. If yes, to whom to approach? Is there any format or form for the purpose.
I shall be grateful if I am enlightended on this issue.
i DON'T THINK THAT 2.2% RATE OF TDS WHICH YOU R USING IS APPROPRIATE AS PER IT ACT. PLS FURTHER CLARIFY ON THIS MATTER.
YOU HAVE TO GIVE TDS AT 12.36% OTHERWISE AS APPLICABLE. PLS PROVIDE FURTHER INFORMATION AS ON WHAT SERVICE YOU R DEDUCTING TDS.
, New Delhi
We are providing data processing and call center services.
My contention is that both of them are not "technical" or "professional" services rendered by "professionals".