Now in these days the TATA Motors and other big companies are charging extra money from the customers on account of extended warranty of the vehicals, as has been charged by me from TATA. However when my vehical caught defect the dealer said that this defect is not covered under extended warranty and you have to pay vis-a-vis removal of defect. Thereafter i came accross one case law and saw that the companies are not paying Income tax on the amounts charged by the customers on account of extended warrranty on the ground that the amount is set apart to meet future liability. Now my request to the Income Tax Department to check as to what treatement has been given by the TATA on the amount charged from the customers on account of extended warranty whether they have paid tax on it or claimed as provisions for meeting future liability. And if they have not paid taxes on these amounts then tax may be imposed on these amounts because in realty they are charging for each and every defect from customers. I have a humble request to my collegues that ward or circle of TATA may be informed to me so that i can check the positions my self
File RTI to CBDT.You will get complete details.
Thanku very much for drawing my attention to this tool of law