A Quick Guide to TDS & VDS Rates in Bangladesh

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Head: Deduction of tax at source from Job Income

Tax Details:

Section : 86

Withholding authority: Any person responsible for making such payment

Tax Rate: Deduction at the average rate

Minimum Tax: N/A

VAT Details:

Service Code & Head: N/A

Rate: N/A

VAT Deduction Applicable or Not: N/A

Head: Deduction of tax from honorarium of members of parliament.

Tax Details:

Section : 87

Withholding authority: Any person responsible for making such payment

Tax Rate:Deduction at the average rate

Minimum Tax: N/A

VAT Details:

Service Code & Head: N/A

Rate: N/A

VAT Deduction Applicable or Not: N/A

Head: Deduction of tax at source on money paid to Provident Fund, Welfare Fund and Worker’s Welfare Foundation Fund.

Tax Details:

Section : 88

Withholding authority: Any person responsible for making such payment

Tax Rate:10%

Minimum Tax: Minimum Tax (Sec-163) applicable

VAT Details:

Service Code & Head: N/A

Rate: N/A

VAT Deduction Applicable or Not: N/A

Head: Deduction of tax at source from supply of cigarettes, biri, tobacco leaf, gul and other tobacco products

Tax Details:

Section : 89 Rule-3 (1) (a)

Withholding authority: Any person responsible for making such payment

Tax Rate:10%

Minimum Tax: Minimum Tax (Sec-163) applicable

VAT Details:

Service Code & Head: N/A

Rate: N/A

VAT Deduction Applicable or Not: N/A

Head: Service provided against contracts executed for manufacturing, processing or conversion, construction work, engineering or any other similar work

Tax Details:

Tax Deduction/Collection at Source (TDS/TCS)

Section : 89 (a) Rule-3 (1) (b)

Withholding authority: Any person responsible for making such payment

Tax Rate:7%

Minimum Tax: Minimum Tax (Sec-163) applicable

VAT Details:

Service Code & Head: S004.00 Construction Company

Rate: 7.5%

VAT Deduction Applicable or Not: VAT Deduction Applicable

Head: Service provided against contracts executed for manufacturing, processing or conversion, construction work, engineering or any other similar work

Tax Details:

Section : 89 (a) Rule-3 (1) (b)

Withholding authority: Any person responsible for making such payment

Tax Rate: 7%

Minimum Tax: Minimum Tax (Sec-163) applicable

VAT Details:

Service Code & Head:

a. S004.00 Construction Company,

b. S010.20 (i) Building Developers (1-1600Sq. Feet), (ii) Building Developers (1600 & above Sq. Feet), (iii) Building Developers  (Re-registration)

Rate: a. 7.5%, b. (i) 2%, (ii) 4.5%, (iii) 2%

VAT Deduction Applicable or Not: VAT Deduction Applicable

Head: A. In case of supply of all goods not mentioned in table serial no. 1 to 12 b. In all other cases mentioned in section 89-

Tax Details:

Section : 89 Rule-3 (1) (c) Table SL No.14

Withholding authority: Any person responsible for making such payment

Tax Rate: 5%

Minimum Tax: Minimum Tax (Sec-163) applicable

VAT Details:

Service Code & Head:

a. S037.00 Procurement Provider,

b. (i) S001.10 Hotel (Air Conditioning), (ii) Hotel (Non-Air Conditioning),

c. S001.20 (i) Restaurants (Air Conditioning), (ii) Restaurant (Non-Air Conditioning),

d. S099.60 Online Product Sale

Rate:     a. 10% , b. (i) 15%, (ii) 10%, c. (i) 5%, (ii) 5%, d. 5%

VAT Deduction Applicable or Not: a. VAT Deduction Applicable, b. VAT Deduction Applicable, c. VAT Deduction Applicable, d. VAT Deduction Not Applicable

Head: A. In case of supply of all goods not mentioned in table serial no. 1 to 12 b. In all other cases mentioned in section 89-

Tax Details:

Section : 89 Rule-3 (1) (c) Table SL No.14

Withholding authority: Any person responsible for making such payment

Tax Rate: 5%

Minimum Tax: Minimum Tax (Sec-163) applicable

VAT Details:

Service Code & Head: S024.00 (i) Furniture Manufacturer, (Furniture Manufacturer Directly Sold to Final Consumer), (ii) Furniture Trading Center-(Showroom) If VAT paid @ 7.5% on manufacturing stage, Otherwise 15%

Rate: (i) 7.5%, 15%, (ii) 7.5%, 15%,

VAT Deduction Applicable or Not: VAT Deduction Applicable,

Head: A. In case of supply of all goods not mentioned in table serial no. 1 to 12 b. In all other cases mentioned in section 89-

Tax Details:

Section : 89 Rule-3 (1) (c) Table SL No.14

Withholding authority: Any person responsible for making such payment

Tax Rate: 5%

Minimum Tax: Minimum Tax (Sec-163) applicable

VAT Details:

Service Code & Head: S008.10 Printing Press

Rate:    15%,

VAT Deduction Applicable or Not: VAT Deduction Applicable

Head: A. In case of supply of all goods not mentioned in table serial no. 1 to 12 b. In all other cases mentioned in section 89-

Tax Details:

Section : 89 Rule-3 (1) (c) Table SL No.14

Withholding authority: Any person responsible for making such payment

Tax Rate: 5%

Minimum Tax: Minimum Tax (Sec-163) applicable

VAT Details:

Service Code & Head: S008.20 Binding Firm

Rate:    0%,

VAT Deduction Applicable or Not: VAT Exempted

Head: In case of locally procured MS Scrap

Tax Details:

Section : 89 Rule-3 (1) (c) Table SL No. 1

Withholding authority: Any person responsible for making such payment

Tax Rate: 0.50%

Minimum Tax: Minimum Tax (Sec-163) applicable

VAT Details:

Service Code & Head: 72.13 to 72.16 (a) MS products manufactured from imported/locally collected re-rollable scrap

(b) All types of billets and ingots manufactured from imported/locally collected meltable scrap.

(c) MS products manufactured from billets / ingots

(d) Ingots/billets made from mace/meltable scrap and MS products made from ingots/billets

Rate:    (a) 1400 taka (per metric ton), (b) 1200 taka (per metric ton), (c) 1200 taka (per metric ton), (d) 2200 taka (per metric ton)

VAT Deduction Applicable or Not: VAT Deduction Applicable

Head: In case of oil supplied by oil marketing companies engaged in marketing of petroleum oil and lubricant

Tax Details:

Section : 89 Rule-3 (1) (c) Table SL No. 2

Withholding authority: Any person responsible for making such payment

Tax Rate: 0.60%

Minimum Tax: Minimum Tax (Sec-163) applicable

VAT Details:

Service Code & Head: Section-15 (3) –Standard Rate or Third Schedule Paragraph 3–VAT rates for Diesel, Kerosene, Octane, Petrol, Furnace Oil and LP Gas

Rate: 15% or 2%

VAT Deduction Applicable or Not: VAT Deduction Applicable

Head: In case of supply of oil by dealers or agents of petroleum oil marketing companies

Tax Details:

Section : 89 Rule-3 (1) (c) Table SL No. 3

Withholding authority: Any person responsible for making such payment

Tax Rate: 1%

Minimum Tax: Minimum Tax (Sec-163) applicable

VAT Details:

Service Code & Head: Section-15 (3) –Standard Rate or Third Schedule Paragraph 3–VAT rates for Diesel, Kerosene, Octane, Petrol, Furnace Oil and LP Gas

Rate: 15% or 2%

VAT Deduction Applicable or Not: VAT Deduction Applicable

Head: In case of supply of rice, wheat, potato, onion, Fish, Meat, Onion, Garlic, Peas, Chickpeas, Lentils, Ginger, Turmeric, Dry Chilies, Dal, Maize, Flour, Flour, Salt, Edible Oil, Sugar, Pepper, Cardamom, Cinnamon, Cloves, dates, bay leaves, jute, cotton, yarn

Tax Details:

Section: 89 Rule-3 (1) (c) Table SL No. 4

Withholding authority: Any person responsible for making such payment

Tax Rate: 1%

Minimum Tax: Minimum Tax (Sec-163) applicable

VAT Details:

Service Code & Head: S037.00 Procurement Provider

Rate: 10%

VAT Deduction Applicable or Not: VAT Deduction Applicable

Head: All Kinds of Fruits Supply

Tax Details:

Section: 89 Rule-3 (1) (c) Table SL No. 5

Withholding authority: Any person responsible for making such payment

Tax Rate: 2%

Minimum Tax: Minimum Tax (Sec-163) applicable

VAT Details:

Service Code & Head: S037.00 Procurement Provider

Rate: 10%

VAT Deduction Applicable or Not: VAT Deduction Applicable

Head: In case of an industrial undertaking engaged in the production Cement, Iron or Iron Products, ferro alloy products except MS Billets

Tax Details:

Section: 89 Rule-3 (1) (c) Table SL No. 6

Withholding authority: Any person responsible for making such payment

Tax Rate: 2%

Minimum Tax: Minimum Tax (Sec-163) applicable

VAT Details:

Service Code & Head: 72.13 to 72.16 (a) MS products manufactured from imported/locally collected re-rollable scrap

(b) All types of billets and ingots manufactured from imported/locally collected meltable scrap.

(c) MS products manufactured from billets / ingots

(d) Ingots/billets made from mace/meltable scrap and MS products made from ingots/billets

Rate: (a) 1400 taka (per metric ton), (b) 1200 taka (per metric ton), (c) 1200 taka (per metric ton), (d) 2200 taka (per metric ton)

VAT Deduction Applicable or Not: VAT Deduction Applicable

Head: In case of supply of oil by any company engaged in oil refinery, on any amount

Tax Details:

Section: 89 Rule-3 (1) (c) Table SL No. 7

Withholding authority: Any person responsible for making such payment

Tax Rate: 2%

Minimum Tax: Minimum Tax (Sec-163) applicable

VAT Details:

Service Code & Head: Section-15 (3) –Standard Rate or Third Schedule Paragraph 3–VAT rates for Diesel, Kerosene, Octane, Petrol, Furnace Oil and LP Gas

Rate: 15% or 2%

VAT Deduction Applicable or Not: VAT Deduction Applicable

Head: In case of company engaged in gas distribution, on any amount

Tax Details:

Section: 89 Rule-3 (1) (c) Table SL No.8

Withholding authority: Any person responsible for making such payment

Tax Rate: 2%

Minimum Tax: Minimum Tax (Sec-163) applicable

VAT Details:

Service Code & Head: SRO No. 240-AIN/2021/163-VAT Rule-5(3)–GAS Bill

Rate: 15%

VAT Deduction Applicable or Not: VAT Deduction not Applicable

Head: In case of company engaged in gas transmission

Tax Details:

Section: 89 Rule-3 (1) (c) Table SL No.9

Withholding authority: Any person responsible for making such payment

Tax Rate: 3%

Minimum Tax: Minimum Tax (Sec-163) applicable

VAT Details:

Service Code & Head: N/A

Rate: N/A

VAT Deduction Applicable or Not: N/A

Head: In case of supply of 33 KV to 500 KV Extra High Voltage Power Cable manufactured by such a company at local level having its own Vertical Continuous Vulcanization line

Tax Details:

Section: 89 Rule-3 (1) (c) Table SL No.10

Withholding authority: Any person responsible for making such payment

Tax Rate: 3%

Minimum Tax: Minimum Tax (Sec-163) applicable

VAT Details:

Service Code & Head: N/A

Rate: N/A

VAT Deduction Applicable or Not: N/A

Head: In case of supply of books to a person other than the Government, or any authority, corporation or body of the Government, including all of its attached and sub-ordinate offices

Tax Details:

Section: 89 Rule-3 (1) (c) Table SL No.11

Withholding authority: Any person responsible for making such payment

Tax Rate: 3%

Minimum Tax: Minimum Tax (Sec-163) applicable

VAT Details:

Service Code & Head: S037.00 Procurement Provider

Rate: 10%

VAT Deduction Applicable or Not: VAT Deduction Applicable

Head: In case of Supply of Recycled Lead

Tax Details:

Section: 89 Rule-3 (1) (c) Table SL No.12

Withholding authority: Any person responsible for making such payment

Tax Rate: 3%

Minimum Tax: Minimum Tax (Sec-163) applicable

VAT Details:

Service Code & Head: S037.00 Procurement Provider

Rate: 10%

VAT Deduction Applicable or Not: VAT Deduction Applicable

Head: In case of supply of raw materials used in industrial production

Tax Details:

Section: 89 Rule-3 (1) (c) Table SL No.13

Withholding authority: Any person responsible for making such payment

Tax Rate: 3%

Minimum Tax: Minimum Tax (Sec-163) applicable

VAT Details:

Service Code & Head: S037.00 Procurement Provider

Rate: 10%

VAT Deduction Applicable or Not: VAT Deduction Applicable

Head: A. In case of supply of all goods not mentioned in table serial no. 1 to 12 b. In all other cases mentioned in section 89

Tax Details:

Section: 89 Rule-3 (1) (c) Table SL No.14

Withholding authority: Any person responsible for making such payment

Tax Rate: 5%

Minimum Tax: Minimum Tax (Sec-163) applicable

VAT Details:

Service Code & Head: S037.00 Procurement Provider

Rate: 10%

VAT Deduction Applicable or Not: VAT Deduction Applicable

Head: Advisory or Consultancy Service

Tax Details:

Section: 90 Rule-4 SL No. 1

Withholding authority: Any person responsible for making such payment

Tax Rate: 10%

Minimum Tax: Minimum Tax (Sec-163) applicable

VAT Details:

Service Code & Head: S032.00 Consultancy & Supervisory Firm

Rate: 15%

VAT Deduction Applicable or Not: VAT Deduction Applicable

Head: Professional service or Technical Services Fee or Technical Assistance Fee.

Tax Details:

Section: 90 Rule-4 SL No. 2

Withholding authority: Any person responsible for making such payment

Tax Rate: 10%

Minimum Tax: Minimum Tax (Sec-163) applicable

VAT Details:

Service Code & Head:

a. S034.00 Audit & Accounting Firm,

b. S045.00 Legal Advisor,

c. S050.10 Architect, Interior designer or Decorator,

d. S050.20 Graphic Designer ,

e. S051.00 Engineering Firm

Rate:  a. 15%, b. 15% c. 15% d. 15% e. 15%

VAT Deduction Applicable or Not: VAT Deduction Applicable

Head: Catering service

Tax Details:

Section: 90 Rule-4 SL No. 3(a)

Withholding authority: Any person responsible for making such payment

Tax Rate: on Commission or fee 10% or on gross bill amount 2%

Minimum Tax: Minimum Tax (Sec-163) applicable

VAT Details:

Service Code & Head: S002.00 Decorators & Caterers

Rate:  15%

VAT Deduction Applicable or Not: VAT Deduction Applicable

Head: Cleaning service

Tax Details:

Section: 90 Rule-4 SL No. 3(b)

Withholding authority: Any person responsible for making such payment

Tax Rate: on Commission or fee 10% or on gross bill amount 2%

Minimum Tax: Minimum Tax (Sec-163) applicable

VAT Details:

Service Code & Head: S065.00 Building, floor and grounds cleaning or maintenance companies

Rate:  15%

VAT Deduction Applicable or Not: VAT Deduction Applicable

Head: Collection and recovery Agency

Tax Details:

Section: 90 Rule-4 SL No. 3(c)

Withholding authority: Any person responsible for making such payment

Tax Rate: on Commission or fee 10% or on gross bill amount 2%

Minimum Tax: Minimum Tax (Sec-163) applicable

VAT Details:

Service Code & Head: S099.20 Other/Miscellaneous Service

Rate:  15%

VAT Deduction Applicable or Not: VAT Deduction Applicable

Head: Private security service

Tax Details:

Section: 90 Rule-4 SL No. 3(d)

Withholding authority: Any person responsible for making such payment

Tax Rate: on Commission or fee 10% or on gross bill amount 2%

Minimum Tax: Minimum Tax (Sec-163) applicable

VAT Details:

Service Code & Head: S040.00 Security Service

Rate:  15%

VAT Deduction Applicable or Not: VAT Deduction Applicable

Head: Manpower Supply Service

Tax Details:

Section: 90 Rule-4 SL No. 3(e)

Withholding authority: Any person responsible for making such payment

Tax Rate: on Commission or fee 10% or on gross bill amount 2%

Minimum Tax: Minimum Tax (Sec-163) applicable

VAT Details:

Service Code & Head: S072.00 Human Resource Supplier of Management

Rate:  15%

VAT Deduction Applicable or Not: VAT Deduction Applicable

Head: Creative Media Service

Tax Details:

Section: 90 Rule-4 SL No. 3(f)

Withholding authority: Any person responsible for making such payment

Tax Rate: on Commission or fee 10% or on gross bill amount 2%

Minimum Tax: Minimum Tax (Sec-163) applicable

VAT Details:

Service Code & Head: S099.20 Other/Miscellaneous Service

Rate:  15%

VAT Deduction Applicable or Not: VAT Deduction Applicable

Head: Public Relations Service

Tax Details:

Section: 90 Rule-4 SL No. 3(g)

Withholding authority: Any person responsible for making such payment

Tax Rate: on Commission or fee 10% or on gross bill amount 2%

Minimum Tax: Minimum Tax (Sec-163) applicable

VAT Details:

Service Code & Head: S072.00 Human Resource Supplier of Management

Rate:  15%

VAT Deduction Applicable or Not: VAT Deduction Applicable

Head: Event Management Service

Tax Details:

Section: 90 Rule-4 SL No. 3(h)

Withholding authority: Any person responsible for making such payment

Tax Rate: on Commission or fee 10% or on gross bill amount 2%

Minimum Tax: Minimum Tax (Sec-163) applicable

VAT Details:

Service Code & Head: S071.00 Event Management/Program Organizer

Rate:  15%

VAT Deduction Applicable or Not: VAT Deduction Applicable

Head: Training, Workshop, etc. Organization and Management Service

Tax Details:

Section: 90 Rule-4 SL No. 3(i)

Withholding authority: Any person responsible for making such payment

Tax Rate: on Commission or fee 10% or on gross bill amount 2%

Minimum Tax: Minimum Tax (Sec-163) applicable

VAT Details:

Service Code & Head: S072.00 Human Resource Supplier of Management

Rate:  15%

VAT Deduction Applicable or Not: VAT Deduction Applicable

Head: Courier Service

Tax Details:

Section: 90 Rule-4 SL No. 3(j)

Withholding authority: Any person responsible for making such payment

Tax Rate: on Commission or fee 10% or on gross bill amount 2%

Minimum Tax: Minimum Tax (Sec-163) applicable

VAT Details:

Service Code & Head: S028.00 Courier & Express mail Service

Rate:  15%

VAT Deduction Applicable or Not: VAT Deduction Applicable

Head: Packing and Shifting Service

Tax Details:

Section: 90 Rule-4 SL No. 3(k)

Withholding authority: Any person responsible for making such payment

Tax Rate: on Commission or fee 10% or on gross bill amount 2%

Minimum Tax: Minimum Tax (Sec-163) applicable

VAT Details:

Service Code & Head: S099.20 Other/Miscellaneous Service

Rate:  15%

VAT Deduction Applicable or Not: VAT Deduction Applicable

Head: Any Other Service of Similar nature —

Tax Details:

Section: 90 Rule-4 SL No. 3(l)

Withholding authority: Any person responsible for making such payment

Tax Rate: on Commission or fee 10% or on gross bill amount 2%

Minimum Tax: Minimum Tax (Sec-163) applicable

VAT Details:

Service Code & Head:

a. S025.00 WASA,

b. S030.00 Beauty Parlor,

c. S099.20 Other/Miscellaneous Service

Vat Rate:  15%

VAT Deduction Applicable or Not:

a. VAT Deduction Not Applicable

b. VAT Deduction Not Applicable

c. VAT Deduction Applicable

Head: Media buying agency service —

Tax Details:

Section: 90 Rule-4 SL No. 4

Withholding authority: Any person responsible for making such payment

Tax Rate: on Commission or fee 10% or on gross bill amount 0.65%

Minimum Tax: Minimum Tax (Sec-163) applicable

VAT Details:

Service Code & Head: S007.00 Advertising Firm

Vat Rate:  15%

VAT Deduction Applicable or Not: VAT Deduction Applicable

Head: Indenting commission —

Tax Details:

Section: 90 Rule-4 SL No. 5

Withholding authority: Any person responsible for making such payment

Tax Rate: 8%

Minimum Tax: Minimum Tax (Sec-163) applicable

VAT Details:

Service Code & Head: S014.00 Indenting Firm

Vat Rate:  5%

VAT Deduction Applicable or Not: VAT Deduction Applicable

Heads: Meeting fees, training fees or honorarium–

Tax Details:

Section: 90 Rule-4 SL No. 6

Withholding authority: Any person responsible for making such payment

Tax Rate: 10%

Minimum Tax: Minimum Tax (Sec-163) applicable

VAT Details:

Service Code & Head: S053.00 Board Meeting Fees

Vat Rate:  15%

VAT Deduction Applicable or Not: VAT Deduction Applicable

Heads: Mobile network operator, technical support service provider or service delivery agents engaged in mobile banking operations–

Tax Details:

Section: 90 Rule-4 SL No. 7

Withholding authority: Any person responsible for making such payment

Tax Rate: 12%

Minimum Tax: Minimum Tax (Sec-163) applicable

VAT Details:

Service Code & Head: S099.20 Other/Miscellaneous Service

Vat Rate:  15%

VAT Deduction Applicable or Not: VAT Deduction Applicable

Heads: Credit rating agency–

Tax Details:

Section: 90 Rule-4 SL No. 8

Withholding authority: Any person responsible for making such payment

Tax Rate: 10%

Minimum Tax: Minimum Tax (Sec-163) applicable

VAT Details:

Service Code & Head: S099.60 Credit Rating Agency

Vat Rate:  7.5%

VAT Deduction Applicable or Not: VAT Deduction Applicable

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