Tds on free service coupons
This query is : Resolved
22 October 2012
Our company is in manufacturing of two wheelers. As a normal practice company provides free servicing to customer through our dealers. Earlier we were not deducting any TDS. Now we have received opinion from some consultant that TDS is required. Please clarify on below-
1. Whether TDS is required and under which head?
2. Should we pay TDS out of pocket for previous year free service coupon expenses.
3. Can there be penalty proceedings against us even if we pay TDS+Interest.
Kindly clarify here or mail me at mehndiratta.rajiv@suzukimotorcycle.in
1. Whether TDS is required and under which head?
2. Should we pay TDS out of pocket for previous year free service coupon expenses.
3. Can there be penalty proceedings against us even if we pay TDS+Interest.
Kindly clarify here or mail me at mehndiratta.rajiv@suzukimotorcycle.in
Amol S Joglekar
(Expert)
22 October 2012
Basically , you are a manufacturer. Free service comes as promotional efforts by the company. Sale price of vehicle is INR20,000 average and 1 free service is worth INR500. The ratio is in favour of promotional activity. No TDS be deducted. Case should be CORRECTLY and with its TRUE intent be pleaded with the consultant.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- GST on reimbursement of expenses
- Query on effect of registration of property
- Visiting card purchase
- Due date for filing return for the partner in partnership subjected to Tax Audit
- Foriegn assets disclosure
- Wrong CMPo8 file
- Goodwill transfer of deceased father’s firm – ICAI applying a 27.04.2026 cut-off to the 3 year limit
- Whether output tax is taken credit by purchaser
- Equity Share Sale and Purchase
- Additional trade name
- Classification of income of P Ltd company as business or profession
- Opting out" of regime provided under subsection (1A) of Section 115BAC but Form 10IEA is not filed.
- "Please ensure that the Total of the Deductions u/s 54F match the same in Table D in Sch CG"
- Need to correct "Whether it is last installment " response in Form 26 QB
- " Income from House Property " in joint names of co-owners
- REGARDING TDS RETURN OF FORM 27Q
- Notice under e-Verification Scheme
- GST demand notice for ITC reversal against exempted supply.
- RCM ON SECURITY CHARGES FROM INDIVIDUALS
- How to get money back from delisted company
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
