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TDS

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what is the difference between TDS, IN India, and USA, have any difference, if any variation(country is different, tax procedure, different tax rates is also different) give any brief clarrification for that.(it is not right way ask this plz excuse ) ur way give ur explnation.

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  • author's profile photo Former Member
    Former Member
    Posted on Dec 01, 2007 at 06:30 PM

    The Withholding Tax (called TDS in India) is configured at Country level.

    Each country has its own law with regard to withholding tax applicable to that country. The law of each country differs on various counts, say the rate at which the withholding tax is to be deducted , the periodicity of filing the returns with thw authorities, issuing certificates etc.

    So the customising is done as per the law of the land.

    For further information on the law of Withholding taxes applicable in different countries you may refer the taxation books or search on internet.

    Regards

    Dharmveer

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  • author's profile photo Former Member
    Former Member
    Posted on Dec 03, 2007 at 02:56 PM

    Hi Madhu

    Main difference between India and US is that in India, tax is at central level whereas in US, it is at State as well as Federal level.

    In US, for many times you need not deduct tax from Vendor's invoices, you have to just report on the payments to vendors/contractors in certain forms like 1099, 1042. Whereas in India, deduction is required for specified nature of services as per Indian IT Act.

    S Jayaram

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