What is the applicability of Section 206AB where the payment to a particular vendor is not crossing the minimum threshold provided under the respective sections of Chapter XVII-B?

  • When the payment does not cross minimum threshold requiring TDS compliance under various Sections of Chapter XVII-B, provisions of 206AB are not applicable.
  • However, where Section 206AB is trigerred, the TDS is deducted at the higher of the following rates:

    • Twice the rate specified in the relevant provisions of the act
    • 5% of the transaction value