VAT

Sir/ Madam,

Please anyone guide me,

We supplied some components-X  (through Returnabe DC) to the vendor, Then they add one more component -Y and assembled (XY) the all and Invoiced to us.

They charging the price in invoice (both assembling cost and cost of the component what they add).

Then charging VAT 4%.

for example : our component          X   Rs.  0

Their component  (i.e Y plus labour charge)   Rs.   100

Total                                  (assembled)  XY  Rs. 100, Plus:VAT 4%                                                               4 , Total Bill Value Rs. 104/-

Whether this is correct.

Or

whether we have to deduct  TDS for Rs. 100