TDS & VDS calculator · উৎসে কর ও ভ্যাট কর্তন
Work out TDS and VDS on a bill
Type the bill amount and what the expense is for. We suggest the closest TDS and VDS heads, and work out the rates, the amounts and what to pay the supplier. Rates for FY 2026-27.
How it works · হিসাবের নিয়ম
TDS and VDS rules used
TDS under the Income Tax Act 2023 and the TDS Rules; VDS under the VAT and Supplementary Duty Act 2012 and the VAT Rules 2016, both as amended by the Finance Act 2026.
- TDS is worked out on the amount before VAT. When the invoice shows VAT separately, TDS is calculated on the amount excluding VAT.
- VDS is the VAT on the invoice. A VAT withholding entity deducts the VAT at the rate for the service code and deposits it to the treasury.
- No PSR, or a cash payment. Each raises the TDS rate by 50% (section 142). Both together double it.
- Tax borne by the payer. If you pay the supplier in full, TDS is grossed up: base × rate ÷ (100 − rate) (section 141).
- Goods with a Mushak 6.3 invoice. No VDS is deducted on goods when the supplier issues a 6.3 tax invoice.
- Office and space rent. TDS at 10% (section 109). VAT at 15% (S074) is paid by the tenant through e-challan, on top of the rent.
- Higher-of rules. Security, cleaning, manpower and freight forwarding: TDS is the higher of 10% of the commission or 1% of the gross bill.
- Non-residents. TDS under section 119, and 15% reverse-charge VAT on services bought from abroad, paid by you.
Common TDS rates for 2026-27
| Payment | Section | Individual | Company / firm |
|---|---|---|---|
| Professional service fee (audit, legal, tax) | 90 | 15% | 7.5% |
| Advisory or consultancy | 90 | 15% | 7.5% |
| Technical services | 90 | 15% | 10% |
| Catering, event, training, courier, PR | 90 | 2% of gross bill | |
| Transport, vehicle rental, repair and maintenance | 90 | 2% | |
| Security, cleaning, manpower supply | 90 | Higher of 10% of commission or 1% of gross bill | |
| Any other service | 90 | 10% | |
| Supply of goods (general) | 89 | 5% | |
| Industrial raw and packing materials | 89 | 3% | |
| House, office or warehouse rent | 109 | 10% | |
| Media advertising bill | 92 | 5% | |
Common VDS rates for 2026-27
| Service | Code | VDS |
|---|---|---|
| Audit and accounting firms; legal advisers; consultancy and supervisory firms | S034 · S045 · S032 | 15% |
| Security; cleaning; human resource (manpower) services | S040 · S065 · S072 | 15% |
| Decorators and caterers; event management; courier | S002 · S071 · S028 | 15% |
| Transport contractors; rent-a-car; repair and servicing | S048 · S049 · S031 | 15% |
| Construction firms; motor garages and workshops; procurement providers | S004 · S003.1 · S037 | 10% |
| Furniture | S024 | 7.5% |
| IT-enabled services; online advertising; restaurants | S099.1 · S007.2 · S001.2 | 5% |
| Office or space rent (paid by the tenant) | S074 | 15% |
Sources: Income Tax Act 2023, the TDS Rules, the VAT and SD Act 2012 and the VAT Rules 2016, as amended by the Finance Act 2026; HSB rate reference. Last checked 10 November 2026. The NBR may change rates by SRO; we update this page when it does.
FAQ · সাধারণ প্রশ্ন
TDS and VDS questions
What is the difference between TDS and VDS?
TDS (tax deducted at source) is income tax that the payer deducts from a payment and deposits on the supplier’s behalf. VDS (VAT deducted at source) is the VAT on the supplier’s invoice, which a VAT withholding entity deducts and pays to the treasury. One bill can carry both.
Is TDS calculated on the amount including VAT?
No. When VAT is shown separately on the invoice, TDS is calculated on the amount excluding VAT. VDS is then worked out on the same base at the VAT rate for the service.
What is the TDS rate on an audit fee in Bangladesh?
An audit fee is a professional service fee under section 90: 7.5% when paid to a firm and 15% when paid to an individual, for 2026-27. VDS at 15% applies under service code S034 (audit and accounting firms).
What are the TDS and VAT on office rent?
TDS on rent is 10% under section 109. VAT on office or space rent is 15% (S074). The tenant pays it through e-challan on top of the rent, and shows it in the VAT return.
What happens if the supplier has no proof of return submission?
The TDS rate goes up by 50% under section 142. It also goes up by 50% if the payment is made in cash rather than through a bank or mobile financial service. Both together double the rate.
Is VDS deducted on the purchase of goods?
Generally not, when the supplier issues a Mushak 6.3 tax invoice. TDS under section 89 still applies, usually at 5% (3% for industrial raw and packing materials).
Withholding tax and VAT compliance · উৎসে কর ও ভ্যাট
We review TDS and VDS, file withholding returns, and handle NBR audits.
উৎসে কর ও ভ্যাট কর্তন, রিটার্ন দাখিল এবং এনবিআর অডিটে আমরা সহায়তা করি।