TDS in Nepal: what businesses need to deduct and deposit

Tax deducted at source is one of the most common compliance areas where businesses make mistakes, especially during rapid growth. Companies often forget that certain payments require deduction before the amount is released to a vendor, landlord, consultant, or service provider.\n\nThe challenge is not only calculating the correct deduction rate. Businesses also need to classify transactions properly, deposit the deducted amount within the required timeframe, and maintain supporting documentation. If records are weak, even a correctly deducted amount can create trouble during review.\n\nA clean TDS process starts with vendor onboarding. Finance teams should define what documents are required, how transactions are categorized, and who approves deductions before payment. This creates a repeatable process and significantly reduces year-end confusion.