Tds on warranty charges

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

20 September 2011 Please give me your opinion on TDS on warranty
sir i have purchase one software with warranty.They charge me seperate for warranty.
I have question regarding TDS on warranty charges. If tds is to be deduct then in which section.
whether it is capitalize or not, and if it capitalise then with software price or seperately.
Please give me your answer as early as possible.

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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20 September 2011 TDS will not be deducted.

Only those expenses are to be capitalized which increase the performance or the output or productivity of the asset.

Warranty does neither of the above. Accordingly, it will be treated as a revenue expenditure.

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