raj (accountant) (29 Points)
19 October 2011Dear Sir,
please guide to me, i am working in Automobile dealer, we are doing new car sales, at the time of sale, extended warranty also collected fromt the customer. we are going make the payment to the company, but not a manufacturer, it's third party company authorised by manufacturer. on that amount we are going to deducted TDS or not.
could you please suggest me
Rahul Gupta
(Chartered Accountant)
(644 Points)
Replied 19 October 2011
It's depends upon the circumstances, like if you are acting as an agent of the company for collecting the Extended Warranty Payments than you can't deduct tax. Like if you are getting some consideration in return of it for collecting and selling the Extended Warranty to Customers. Than you are not liable to deduct tax.
Generally in your case you are not liable to deduct tax as you are acting as a intermediaries for selling their product i.e. Extended Warranties offered by the company to customers through dealers i.e. intermediaries.
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