What is Tax deduction at source

Tax deduction at source (‘TDS’) is a mechanism wherein the recipient of goods or services or both will deduct out of the amount payable to the supplier, an amount at a percentage of value of supply and deposit the same to the account of the Government within the time prescribed.

(ICAI FAQ PUBLICATIONS 06-09-2017 TAX PAYMENTS, INTEREST, PENALTY AND OTHER AMOUNTS: FAQ NO. 38)

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