Input VAT Credit
This query is : Resolved
06 May 2009
Sir/Mam
We have been importing spare parts and selling them in India. These spare parts are sold on a warranty basis.
If any sub-part in those spare part becomes ineffective within the warranty period then those sub-parts are supplied FREE OF COST to the customer.
These sub-parts are purchased locally and then supplied FREE OF COST to the customer. The company also sells these sub-parts in the normal course of business.
Is the company eligible to take Input Tax Credit on these sub-parts which are supplied FREE OF COST?
If yes then please mention the relevant Section, Rules, Case Laws.
We have been importing spare parts and selling them in India. These spare parts are sold on a warranty basis.
If any sub-part in those spare part becomes ineffective within the warranty period then those sub-parts are supplied FREE OF COST to the customer.
These sub-parts are purchased locally and then supplied FREE OF COST to the customer. The company also sells these sub-parts in the normal course of business.
Is the company eligible to take Input Tax Credit on these sub-parts which are supplied FREE OF COST?
If yes then please mention the relevant Section, Rules, Case Laws.
Vishnu Saboo
(Expert)
30 May 2009
if you have paid the tax, you are always eligible for take credit. Sec 11
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