Calculate TDS on vendor payments, house rent, consultancy, freight, and contracts with reverse gross-up.
Services provided by a VAT-registered business or resident firm with tax invoice.
TDS is legally deducted on the taxable base amount, not on VAT.
| Payment Nature | Section | TDS Rate | Status | Action |
|---|---|---|---|---|
| Consultancy / Professional Service (VAT Bill) | Section 88(1) | 1.5% | Adjustable in Tax Return | |
| Consultancy / Service by Individual (PAN / No VAT) | Section 88(1) | 15% | Adjustable in Tax Return | |
| House Rent (Corporate / Business Tenant) | Section 88(1) | 10% | Adjustable in Tax Return | |
| Contract / Goods Supply (> Rs 50,000) | Section 89(1) | 1.5% | Adjustable in Tax Return | |
| Freight & Transportation (Without VAT Bill) | Section 88Ka | 2.5% | Adjustable in Tax Return | |
| Freight & Transportation (VAT Registered) | Section 88Ka | 1.5% | Adjustable in Tax Return | |
| Vehicle / Equipment Rental Hire | Section 88(1) | 10% | Adjustable in Tax Return | |
| Statutory Audit & Certification Fee | Section 88(1) | 1.5% | Adjustable in Tax Return | |
| Meeting Allowance & Board Fee | Section 88(1) | 15% | Final Withholding | |
| Commission & Agency Fee | Section 88(1) | 15% | Adjustable in Tax Return | |
| Foreign Software / Digital Service Payment | Section 88(1) & 90 | 15% | Final Withholding | |
| Dividend Payment to Residents | Section 88(2) | 5% | Final Withholding | |
| Bank Deposit Interest (Individual) | Section 88(1) | 5% | Final Withholding |
Under Inland Revenue Department (IRD) directives and the Income Tax Act 2058, TDS must be deducted on the taxable base amount EXCLUDING 13% Value Added Tax (VAT). VAT is an indirect tax and cannot be subject to income tax withholding.