We are in a business of selling and purchasing of Fabric & Furnishing. We use to purchase a Plastic bags from one of the vendor. He issue a invoice with 12.50% VAT, we use to debit it to Packing Material Expenses. My question is whether the vendor becomes a contractor in this case, we usually deduct 2% tds. is it right to do so if the VAT is charged and TDS also to be deducted. Can anybody explain with suitable exs and case.
Bansal sir, We are not purchasing it for selling purpose. we have already debited to packing expenses. My question is whether we should deduct the TDS and if yes, then at which rate?.
good sir
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