I am working as an accountant at a dealership that sells school buses. The dealership is an SML Mahindra Ltd. dealership.

We purchase buses and spare parts from SML Mahindra Ltd. and make advance payments against these purchases. Whatever payments we make during a month, we deduct and deposit TDS at 0.1% on those payments.

However, SML Mahindra Ltd. is telling us that we should deposit TDS based on the actual purchases made from them, rather than on the payments made during the month.

Please guide me on the correct procedure.