12 September 2012
A firm is running authorised service center for mobile repair and having labour income of Rs. 20 lacs. Further the firm has claimed free replacement of parts under warranty from the company amounting to Rs. 80 lacs plus VAT. No receipt is made from customer for free replacement of parts under warranty.
I am seeking your opinion, whether the claim of free replacement of parts from the principal company will be part of turnover for the purpose of TAX audit of the firm.
CAclubindia
