Cenvat credit on service used for warranty
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
25 February 2015
my client is a manufacturer of steel containers and giving free warranty of repair for specific period to customer.
In case any free warranty comes, he used to engaged a in-house subcontractor for repair.
subcontractor raised bill with service tax to client but customer gives free service to customer.
Query:-
Can this service tax be treated as input service to my client i.e. can he take this service tax as cenvat credit and utilize for payment of excise duty on final product.
In case any free warranty comes, he used to engaged a in-house subcontractor for repair.
subcontractor raised bill with service tax to client but customer gives free service to customer.
Query:-
Can this service tax be treated as input service to my client i.e. can he take this service tax as cenvat credit and utilize for payment of excise duty on final product.
CA R SEETHARAMAN
(Expert)
25 February 2015
Yes it can be treated as input service and cenvat credit can be availed.
As the price of the original supply of the good has already included the charge for the warranty service, the manufacturer is not required to charge a deemed output tax on the supply of any items associated with the warranty service. The input tax incurred on any items used to carry out the warranty repairs is also allowable to the manufacturer since it was incurred in the making of taxable supplies.
As the price of the original supply of the good has already included the charge for the warranty service, the manufacturer is not required to charge a deemed output tax on the supply of any items associated with the warranty service. The input tax incurred on any items used to carry out the warranty repairs is also allowable to the manufacturer since it was incurred in the making of taxable supplies.
Rajeev Kumar Garg
(Expert)
02 March 2015
I AM ALSO AGREE WITH THE VIEW OF MR. SEETHARAMAN BASED ON RULE 3 (5) OF CENVAT CREDIT RULES, 2004.
THANKS
R.K. GARG
(ADVOCATE)
THANKS
R.K. GARG
(ADVOCATE)
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
- EPF ECR NEW FILE SEP 17TH 2026
- Utilisation Fy 25-26 TDS challans in Fy 26-27 TDS Return
- GST on Renting godown to KFCSC for Storage of Raagi
- TAX AUDIT ON PROFESSIONAL INCOME
- TDS on Fixed Assets purchased
- Capitalgain tax purposes for valuation report compulsory
- SECTION 393(3) TAX ON CASH WITHDRAWAL
- How to Handle Active E-Invoices in GST Portal Deleted from Tally?
- Oct 2025 Invoices
- 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?
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
- How to pay remaining amount of TDS after due date?
- Resigning a auditor from the company for misconduct
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
