TDS querry
This query is : Resolved
Yogesh Modi
(Querist)
03 October 2008
We are receiving the Bills from Vendor (Automobile Dealers) for the expense mentioned below:
As you are aware that Banks provides Vehicle Financing. So one of the Bank is financing vehicles purchased through various Automobile dealers all over India. To promote the sales the dealers are providing various promotional schemes to customers.One of such promotional activity is providing free Insurance to the customers. The dealers then claims the share of Bank (say 50% or 100%) as reimbursement through Invoice raised on Bank.
The supporting provided with the Invoice is in the form of the acknowledgment from customers that they have received the Free Insurance. The supporting is sometimes marked to the concerned Vendor & sometimes to the Bank.
Please advice whether TDS need to be deducted in such a case or not.
As you are aware that Banks provides Vehicle Financing. So one of the Bank is financing vehicles purchased through various Automobile dealers all over India. To promote the sales the dealers are providing various promotional schemes to customers.One of such promotional activity is providing free Insurance to the customers. The dealers then claims the share of Bank (say 50% or 100%) as reimbursement through Invoice raised on Bank.
The supporting provided with the Invoice is in the form of the acknowledgment from customers that they have received the Free Insurance. The supporting is sometimes marked to the concerned Vendor & sometimes to the Bank.
Please advice whether TDS need to be deducted in such a case or not.
PIYUSH JAIN
(Expert)
03 October 2008
TDS amount is deductable on Insurance commission u/s 194D, as there is no TDS applicable on Insurace premium dealer will not deduct TDS from that amount,weather payment is on his own bahalf or Banks Behalf. In case of dealers claim TDS is not deductable as it is not his income and such payment is not covered under TDS provisions.
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
- Accounting treatment of AMC alongwith the purchase of Laptop
- Nursery business
- Condonation Request sec 119(2) b -Enhancement Limit of Leave Exemption prior to AY 2023
- GST Treatment of Purchases with GST Paid where Outward Supplies of Manufactured CattleFeed Exempt
- Issuing of delivery challan by seller of goods
- Tax on Amount transferred in HUF Account
- Not ordinarily resident having partnership income in India and salary in USA is any form to filed be
- WRONG GSTR7 ENTRIES ACCEPTED ERRONEOUSLY
- Expert Help Required for TDS Refund 100000 Through TRACES – AY 2022–23
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
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
