Tds on insurance claim in bike showroom

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..... Dear Sir I want to know how to treat tds on insurance claim on bike reparing. Kindly suggest Thaking You Regards S K Nayak - Reply By Ganeshan Kalyani - The Reply = Please explain a bit more to understand to give suitable reply. - Reply By SANJAY NAYAK - The Reply = Dear Sir I am accountant of a bike showroom who is dealer of HERO MOTOCORP LTD. The insured vehicle which comes for repair und .....

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..... er insurance claim the insurance company deduct 1% tds on insurance claim payable then rest deposit in Bike shoowroom account . Bike showroom returns the same to the insured person or repair with same. But my question why insurance company deduct 1% tds on the above and under which section. Please clarify above Thanking You Regards S K Nayak - Reply By Ganeshan Kalyani - The Reply = In my view .....

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..... compensation is not subject to TDS on the condition that there is no interest element. Tds is only applicable on interest received for delay in receiving compensation. you may ask the insurance company on what basis they are deducting Tds. Further I understand that you are transferring the same amount received from insurance company to the insured. you do not have any profit built in it. - Reply .....

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..... By MARIAPPAN GOVINDARAJAN - The Reply = You can ask the Insurance about the nature of deduction of tax and take action accordingly. - Reply By Ganeshan Kalyani - The Reply = Hope your query is resolved. - Tds on insurance claim in bike showroom - Query Started By: - SANJAY NAYAK Dated:- 21-12-2015 Income Tax - Got 5 Replies - Income Tax - Discussion Forum - Knowledge Sharing, reply post by an .....

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..... expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax .....

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