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On specified payments — contractor fees, professional fees, rent, commission and others — the payer deducts tax at a prescribed rate and remits it, rather than the recipient paying it later.
The obligation, and the liability for getting it wrong, sits with the payer. That is the part businesses most often underestimate.
Deduct at the right rate on the right payments, remit by the due date, file periodic returns, and issue certificates to the people you deducted from.
Each step has its own deadline and its own consequence for lateness — interest for late remittance, fees for late filing, and disallowance of the expense in some cases.
They vary by payment type and recipient status, and change. Take them from the current official position.
The payer. Interest, fees and in some cases expense disallowance follow.
At vendor setup, as a property of the vendor and category — not at payment time.
Half an hour with your own data usually saves reading three of these. The guides will still be here afterwards.