Vat on Warranty Claim
This query is : Resolved
07 December 2010
An authorized service station of car provide service to customer, but the spare parts which are replaced under warranty provided free of cost to customer and the same is recovered from the supplier
Further supplier has been returned only the cost of the part not the selling price
whether sales tax will charge to supplier on recovery amount
Also i want to know what tax planning we can do to save the tax
can we show as agent and principal transaction
Please Reply soon
Further supplier has been returned only the cost of the part not the selling price
whether sales tax will charge to supplier on recovery amount
Also i want to know what tax planning we can do to save the tax
can we show as agent and principal transaction
Please Reply soon
08 December 2010
Some CTO's can accept the warranty claim as free of cost. but, some CTO's object the warranty claim is a part of sales. you are collecting the money from Company instead of customer. so, it is treated as sales. Hence, if you want to escape from this problem, you better to receive the letter from company for warranty claim is a stock transfer, amounting without affect VAT on transfer and you must raise and show the 0% vat output bill for such case to CTO.
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
- About TDS & Income Tax
- Pass word to open justification report for Q1 for FY 2026-27
- PPF interest-As Exempt Income disclosure
- Section 194JA & JB Income which ITR Form to use
- Scrutiny and reopening of past returns
- Type of Capital Gain
- F & O PROFIT REPORTING FOR AY 2026-27
- Booth for sales promotion
- Difference in GSTR3B system generated which is correct and actual Payment it asks
- GST ON TRAVELLING BILLS
- TDS on Rent received on redevelopment of building
- Tax on Deemed Capital Gain
- Indian IT Portal issue in computing tax as per UK-India DTAA
- Capital Gains on sale of residential flat
- Upload Level ValidationITR3Category of Defect B/D
- PF Taxable Income
- Clarification on Tax Audit Applicability and Reporting of F&O Transactions in ITR-3
- Interest credited in FY2025-2026 & TDS therein by EPFO does not reflect in AIS or Form 26AS
- 44ad eligble money lending interest
- Taxation in the hands of Landowner under JDA
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
