19 October 2013
We are two wheeler manufacturing company and having various dealers across the India. On the basis of company’s policy, Dealers replaces warranty parts and claim from the company {part(s) cost + labour charges}. Accordingly company pays to dealer (Part cost + labour charges) thru credit Notes. My doubt is whether TDS applicable on warranty reimbursement or not. If yes, tds will be deducted on which amount only labour charges or whole amount (including part cost). Please suggest us with relevant Case law/notification.
19 October 2013
Warranty replacement of parts are supply nature it will not attract TDS, but TDS will apply on labour charges. need to deduct. however the credit note is raised together for part & labour charges then TDS will apply on total value u/s.194C
CAclubindia
