Is this VDS and TDS calculator free?

Yes. It is free, there is no sign-up, and it runs entirely in your browser. Nothing you type is sent to a server.

What is the difference between VDS and TDS?

VDS is VAT deducted at source under the VAT and Supplementary Duty Act 2012. TDS is income tax deducted at source under the Income Tax Act 2023. They are different taxes, computed on different bases and deposited separately, and both can apply to the same supplier payment.

Why does the calculator not have a service-code list?

The per-service-code VDS schedule is set by SRO and re-issued, often mid-year. Publishing a chart that cannot be verified against the SRO in force would mean a reader deducting the wrong amount on our authority, so the tool works from the VAT rate the service actually carries instead.

Does it handle annual thresholds?

No. Several deduction categories only apply once cumulative payments to a vendor cross a threshold for the fiscal year, which a single-invoice calculator cannot see. Check the cumulative position in your own payables records.

Can I use this as evidence for a deduction?

No. It is arithmetic with the Act and section printed beside it, not a certified computation. Verify against the current SRO or with your VAT consultant before you deduct, and keep the treasury challan as your evidence.

Free tool

VDS and TDS calculator for Bangladesh

Pick the category, enter the amount, get the deduction and the net payable with the Act and section it comes from. Free, no sign-up, and nothing you type leaves your browser.

Reviewed 19 August 2026

The short answer

This calculator works out VAT deducted at source and income tax deducted at source on a Bangladeshi supplier payment. Choose the category, enter the amount, and it returns the deduction, the net payable, and the statute and section behind the rate.

VDS and TDS are different taxes under different Acts and both can apply to one invoice, so run it once per deduction.

Deduction calculator

What is the payment for?Amount in BDT

For a VDS category, enter the value of the service excluding VAT. For a TDS category, enter the gross payment.

Result

Rate applied: 15%
VAT to withhold: 15,000.00
Net payable to the supplier: 85,000.00

Authority: VAT and SD Act 2012, section 49 and the VDS SRO in force

The default position for a standard-rated service where the withholding entity must deduct the whole VAT.

Rates reviewed 19 August 2026. Confirm against the SRO in force before you deduct.

How to use it

Pick the category the payment falls into. VDS categories follow the VAT rate the service carries. TDS categories follow the nature of the payment.
Enter the amount. For VDS that is the value of the service excluding VAT. For TDS it is the gross payment.
Read the deduction and the net payable, and note the Act and section shown beside them. Record that section with the deduction in your own books; it is what you will be asked for.

The rates behind the calculator

Every figure the calculator produces comes from the tables below. Nothing is hidden in the code.

Income tax deducted at source, by nature of payment
Payment type	Rate	Authority
Supply of goods	7%	Income Tax Act 2023, section 94
Manufacturing or processing contract	7%	Income Tax Act 2023, section 94
Services	10%	Income Tax Act 2023, section 94
Professional or technical fees	10%	Income Tax Act 2023, section 94
Commission or discount	10%	Income Tax Act 2023, section 94
House or office rent	5%	Income Tax Act 2023, section 93
Transport or carrying service	5%	Income Tax Act 2023, section 94
Interest on savings or fixed deposit	10%	Income Tax Act 2023, section 91

VAT deducted at source, by the rate the service carries
Service carries	Deduction	Authority
Full rate, standard-rated service	15%	VAT and SD Act 2012, section 49 and the VDS SRO in force
Truncated-base service at 7.5%	7.5%	VAT and SD Act 2012, third schedule and the VDS SRO in force
Construction firm	7.5%	VAT and SD Act 2012, third schedule and the VDS SRO in force
Truncated-base service at 5%	5%	VAT and SD Act 2012, third schedule and the VDS SRO in force
Truncated-base service at 2.4%	2.4%	VAT and SD Act 2012, third schedule and the VDS SRO in force
Service not listed here	Slab	The VDS SRO in force, by service code

Figures our sources disagree about

At least one credible source disagrees with each figure below. What we publish is the reading with the most support, but the disagreement is printed here because you need it before you rely on the number.

Turnover tax: 4%: Two sources put the rate at 4% and one at 3%: The Financial Express, on 17 August 2026, describes small enterprises below the registration threshold as paying 3%. Separately, PwC's summary of the 2026 budget reports that the 4% charge is replaced for the simplified small-business regime by a fixed amount set by NBR and capped at BDT 200,000. Which of the three applies to a given business is a question for a consultant, not for this page.
Supplementary duty: 5%: Supplementary duty is set item by item in the second schedule and runs far wider than these four bands, into the hundreds of per cent on items such as tobacco. Treat this as the shape of the charge and read the schedule for your item.
Supplementary duty: 10%: Supplementary duty is set item by item in the second schedule and runs far wider than these four bands, into the hundreds of per cent on items such as tobacco. Treat this as the shape of the charge and read the schedule for your item.
Supplementary duty: 20%: Supplementary duty is set item by item in the second schedule and runs far wider than these four bands, into the hundreds of per cent on items such as tobacco. Treat this as the shape of the charge and read the schedule for your item.
Supplementary duty: 45%: Supplementary duty is set item by item in the second schedule and runs far wider than these four bands, into the hundreds of per cent on items such as tobacco. Treat this as the shape of the charge and read the schedule for your item.
Supply of goods: 7%: PwC records supply of goods as a range of 0.5% to 5% that varies by product (0.5% on paddy and rice, 2% on cement and iron), not as one flat rate.
Manufacturing or processing contract: 7%: PwC records 5% for a manufacturing or processing contract.
Professional or technical fees: 10%: PwC records 15% where the recipient is an individual and 7.5% to 10% where it is not, so the payee's status changes the answer.
Commission or discount: 10%: PwC records 10% as the standard rate but 1.5% on distribution or marketing commission and 0.25% on bulk goods.
House or office rent: 5%: PwC records 10% on house and office rent.
Transport or carrying service: 5%: PwC records 2% on transport and carrying services.
Interest on savings or fixed deposit: 10%: PwC records 10% for an individual but 20% for a company or a trust.
Import, general: 5%: PwC records tax collected at import as 0% to 20% depending on the HSN code of the goods, so no single figure covers an import line. Read the rate against your own HSN code.
Import, industrial raw material: 3%: PwC records tax collected at import as 0% to 20% depending on the HSN code of the goods, so no single figure covers an import line. Read the rate against your own HSN code.
Construction firm: 7.5%: Some secondary sources describe building construction at 2% up to 1,600 square feet and 4.5% above it. We could not corroborate those figures against any reachable source, and they appear to describe VAT on the handover of a flat rather than the withholding rate on a construction service. If your bill is for a flat handover rather than for construction work, do not use this row: read the SRO.
Annual turnover above the enlistment floor: BDT 5,000,000: PwC's Bangladesh summary, reviewed 31 July 2026, instead puts the turnover-tax band at BDT 3 million to BDT 5 million. Three other sources, two of them from after the Finance Act 2026 took effect, describe the band as BDT 5 million to BDT 30 million, which is what is published here. If your turnover sits between BDT 3 million and BDT 5 million, the two readings disagree about whether you have any VAT obligation at all: settle it with a consultant before you decide.
Annual turnover above the registration threshold: BDT 30,000,000: PwC's Bangladesh summary, reviewed 31 July 2026, instead says registration must be obtained once turnover exceeds BDT 5 million, which is six times lower than the figure published here. Three sources support BDT 30 million, two of them dated after the Finance Act 2026 took effect on 1 July 2026, so that is the figure this site publishes. The gap is large enough to change whether a business must register at all, so if your turnover is between BDT 5 million and BDT 30 million, confirm your position with a VAT consultant before you trade unregistered.
Mushak 9.1 filing cadence: within 15 days of the quarter end if you file quarterly, which is now the default, or by the last day of the following month if you have opted to file monthly: The monthly return due on the 15th was the regime in force until 30 June 2026, and NBR was still extending monthly deadlines on that basis in February 2026. Three sources report that the Finance Act 2026 made the quarterly return the default from 1 July 2026, with monthly filing available by election. We could not reach NBR or the Act itself to confirm which cadence your registration was placed on, and the election is per-taxpayer. Confirm yours with your VAT consultant before you plan a filing calendar.

Confirm any of these with your VAT consultant before you act on it. NBR is authoritative; this page is not.

As of 19 August 2026, per the Value Added Tax and Supplementary Duty Act 2012 and its Rules 2016, and the Income Tax Act 2023, as amended by the Finance Act 2026. Rates, thresholds and schedules in Bangladesh are re-issued by SRO, often mid-year, and the figures here are drawn from professional secondary sources because NBR's own site was not reachable at review time. Confirm with your VAT consultant before you rely on any figure here. NBR is the authority; this page is not.

What this tool does not do

Stated plainly, because a calculator that hides its limits is worse than no calculator.

It does not know your annual thresholds. Several deduction categories only bite once cumulative payments to a vendor pass a threshold for the year, and a single-invoice calculator cannot see that.
It does not carry a per-service-code VDS schedule. That schedule is set by SRO and re-issued, so the tool works from the rate the service carries rather than from a chart we cannot verify.
It does not compute salary TDS. Salary is deducted against the employee's own annual slab position, not against one payment.
It is not advice. It is arithmetic with the authority printed next to it.

Doing this for every payment, not one at a time

A calculator is the right tool for checking one invoice. It is the wrong tool for a payment run, where the rate depends on the category, the category depends on the vendor, and whether you deduct at all depends on what you have already paid that vendor this fiscal year.

Questions people ask

Is this VDS and TDS calculator free?: Yes. It is free, there is no sign-up, and it runs entirely in your browser. Nothing you type is sent to a server.
What is the difference between VDS and TDS?: VDS is VAT deducted at source under the VAT and Supplementary Duty Act 2012. TDS is income tax deducted at source under the Income Tax Act 2023. They are different taxes, computed on different bases and deposited separately, and both can apply to the same supplier payment.
Why does the calculator not have a service-code list?: The per-service-code VDS schedule is set by SRO and re-issued, often mid-year. Publishing a chart that cannot be verified against the SRO in force would mean a reader deducting the wrong amount on our authority, so the tool works from the VAT rate the service actually carries instead.
Does it handle annual thresholds?: No. Several deduction categories only apply once cumulative payments to a vendor cross a threshold for the fiscal year, which a single-invoice calculator cannot see. Check the cumulative position in your own payables records.
Can I use this as evidence for a deduction?: No. It is arithmetic with the Act and section printed beside it, not a certified computation. Verify against the current SRO or with your VAT consultant before you deduct, and keep the treasury challan as your evidence.