What is TDS (tax deducted at source)?

With TDS, the tax belongs to the person you pay. You collect their income tax at the moment you pay them, and you pass it to the Department on their behalf.

So if the tax is not deducted, the fault is yours. A business that does not deduct can be required to pay the amount itself, with interest and a fine. It then has to recover the money from a supplier who has already been paid in full.

The routine has three parts. Withhold the tax when you pay. Deposit and report it within 15 days of the end of the Nepali month. Then give the payee a deduction certificate. Rates depend on the payment type and on who is paid. Finance Acts change them, so work from the current schedule, not from memory.

See how Kuver Books handles it All terms