Timeline of Depositing TDS & VDS to Government Treasury

Overview

Tax & Vat Deducted at Source (TDS & VDS) is a mechanism that has been introduced by the National Board of Revenue (NBR) based on Income Tax Ordinance 1984 & Vat Act-2012. Under these Acts, the responsible person is supposed to deduct a certain percentage of tax & Vat before making payment to the receiver. The payment includes salary, commission, professional fees, interest, rent, and so on. The responsible person who deducted TDS & VDS before making Payment that person must be deposited those deducted Tax & Vat to Government Treasury within the timeline prescribed by the Income Tax Ordinance 1984 & Vat Act-2012.

Timeline For Depositing Tax Deducted At Source (TDS)

Timeline For Depositing VAT Deducted at Source (VDS)

In accordance with New Finance Act 2022, Vat Deducted at Source must be deposited to the government treasury within seven (7) days of the following month. This timeline previously was Fifteen (15) days of the following month.

Recommendations

Companies that have been deducting or collecting TDS VDS can easily comply with the mentioned rules and regulations above by c within relevant months.

Penalties for Non-Compliance of Depositing TDS & VDS