WE HAVE A MFG.UNIT IN ROORKEE AND A SALES OFFICE IN NOIDA, FOLLOWING IS THE QUERY
1. SUPPLIERS SENT US THE FAULTY PARTS OF THE PRODUCTS WITH FORM-38(ROAD PERMIT) IF WE REPAIR THE PART AND SEND THEM BACK BUT IF PARTS IS NOT REPAIRABLE WE REPLACE THE PART NOW THE MATTER IS SHOULD WE CHARGE THE VAT ON REPLACED PART.
30 July 2010
If for the faulty parts you are taking sales return & taking tax credit then at the time of replacing it with new you should charge vAT,otherwise no need,but in that there should be accurate records that that new part you are sending is against the old one .Best & easy way will be to take credit note/purchase invoice when you get a faulty part which is to be replaced & issue a new invoice so u can take input also & output ofcourse you have to charge.
CAclubindia
