we are in the service industry,and every month we give bills to customer. Customer deducts 2% as TDS and pays balance to us by ECS/CHQ

I HAVE HEARD THAT TDS IS NOT 2% BUT 1% (IF THE CUSTOMER IS PVT LTD AND WE ARE PVT LTD THE TDS % IS 1% ? is this so ?


Admin’s Response:

Rate of TDS for a person other than individual and HUF is 2% u/s 194 C. In your case it is 2% since you are a company.