A company wants 400 customized backpacks which will be distributed by the company to its employees on the annual event. He hires a local vendor for this task and informs the local vendor about its specifications for the backpacks. The local vendor procures its own raw material and supplies the required backpacks to the Company. He charges ₹ 1,00,000 for the backpacks from the company. While making payment to the p vendor, at what rate company is required to deduct tax at source?
A. 1%
B. 2%
C. 10%
D. No tax is required to be deducted at source.
Answer:D
A company wants 400 customized backpacks which will be distributed by the company to its employees on the annual event. He hires a local vendor for this task and informs the local vendor about its specifications for the backpacks. The local vendor procures its own raw material and supplies the required backpacks to the Company. He charges ₹ 1,00,000 for the backpacks from the company. While making payment to the p vendor, at what rate company is required to deduct tax at source?
A. 1% B. 2% C. 10% D. No tax is required to be deducted at source.