TDS applicability on extended warranty charges

This query is : Resolved

Lakshmi (Querist)
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06 July 2023 Urgent !

Is TDS applicable for the extended warranty charges for the Laptop which is included in the invoice and not as separate invoice/ contract?

Thanks in advance!

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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06 July 2023 No. It gets capitalized with the laptop acc.

Lakshmi

Lakshmi (Querist)
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06 July 2023 But in the audit office, they stress that warranty charges is a contract and we have to deduct TDS u/s 194c.

Kindly advise.

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Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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06 July 2023 It is general practice to capitalize the initial cost of laptop with extended warranty when the separate bill for warranty is not issued by supplier.
Check your purchase order, if it doesn't include the total cost, then treat the warranty charges separately and deduct TDS over it.