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Oct 15, 2019 at 07:49 AM

Difference Between Witholding Tax vs TDS

817 Views Last edit Oct 15, 2019 at 07:52 AM 2 rev

Hi Guys,

Can anyone tell me the difference between Witholding Tax and TDS.

What I inferred on Googling:

Witholding Tax is for foreign vendors and TDS is for vendors.

Both are deducted before making payment to vendor and the payee is liable to deposit to government.

My Doubt:

In what cases a vendor is eligible for TDS ?

And also in what cases the Witholding tax and TDS should be subjected ? Are they for all services done?



When googling i saw paragraph which made me confused.

Tax deducted at source is the amount that is to be deducted at the time of making payment to the contractors, professionals etc. whereas withholding tax is the amount deducted in advance i.e. before paying the amount to the payee withholding tax is deducted for paying the tax to the government.

Above para, both are similar right? Amount deducted before making payment, but i think conveyed in different words.

Please help me out!!