TDS on Extended Warranty purchased from Vehicle Dealer, Income Tax

[Dhara Sheth]

Will TDS be applicable on Extended warranty being charged by a vehicle Dealer ?

Fact: The Vehicle dealer has made an official Tie-up with an Insurance Company wherein they say that the amount collected from us will be paid to Insurance Company. The warranty cover costs of spares and Labour charges involved.

Please support with any circulars/Notification/Case-laws if any.

Posts / Replies

[Ramesh Kothari]

I opinioned that it is applicable due to existing warranty expired and it will treated new in name of extended period