What is Withholding Tax at Source?

Withholding Tax at Source is a process which denotes that when any institution other than an institution withholding tax at source delivers supply amounting to a value over Taka 10 (Ten) thousand under a contract, tender or work order, to any institution withholding tax at source, during payment of the bill, shall withhold a maximum amount of one third of the applicable tax and the withholding tax at source authority shall be liable to deposit the sum to the Government Treasury.