TDS stands for Tax Deductible at Source which means that the tax is collected by the entity (withholder) who makes payment to the party (withholdee).
The company should withhold the TDS while making payment and deposit it within 25th day of following month.
10 Top TDS rates used in Nepal
The TDS rates used in Nepal are as under:
| Description of Payment | TDS RATES |
|---|---|
| Social Security Tax (Salary & Wages) | 1% of payment amount |
| Payment of interest to entity having source in Nepal | 15% |
| Royalty, Service Fees, commission,Sales Bonus | 15% |
| Meeting Allowance, Part- time teaching allowance | 15% |
| Payment of interest to person by bank | 6% |
| Payment to service provider registered in VAT | 1.5% |
| Rent Payment | 10% |
|
Freight payment to person registered in PAN |
2.5% |
| Freight payment to person registered in VAT | 1.5% |
| Windfall Gain | 25% |
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