Customs duty on warranty from foreign exporter

While buying software plus hardware, European vendor is giving 2 years free warranty. Possibly, price is all inclusive. Now as Indian buyer wants extended 3 years, they will charge separately.

This warranty is probably paper based and to be generated after Supply invoice is settled. How to assess customs valuation, pay duty, applicable accounting standard, depreciation due to 3 years economic life, segregation from 2 years free out of 5 years warranty in totality.

Kindly guide.

 

Replies (2)
Quick Summary
An Indian buyer is seeking guidance on customs duty and GST implications for an extended 3-year warranty on software and hardware purchased from a European vendor. The vendor offers a 2-year free warranty, with the extended period charged separately. The buyer needs to understand how to assess customs valuation, pay duties, apply accounting standards, and handle depreciation for the total 5-year warranty period.

In my view there will be customs duty on such transaction.Only GST part needs to be taken care of .

Sorry there was typo error in the abpove reply .Please the above reply please be read as under:

In my view there will not be any Customs duty on such transaction only GST parts needs to be taken care of.

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
24 August 2026
Semi-Qualified CA/CA Finalist - Tax, GST, Audit & Accounts

Bharat Shah & Associates

Mumbai

CA Inter

View Details
Company
ARTICLESHIP 26 August 2026
Article Assistant

ANIVESH CONSULTANTS LLP

Gurgaon

CA Inter

View Details
Company
ARTICLESHIP 24 August 2026
Article Assistant

M/s.S.G.Salecha & Co.

Mumbai

CA Inter

View Details
Company
ARTICLESHIP 17 August 2026
Article Assistant

Jain Ankit and Co

Gurgaon

CA Inter

View Details
Company
ARTICLESHIP 25 August 2026
CA Article's

Saini Pati Shah & Co LLP

Mumbai

CA Inter

View Details
Company
28 August 2026
Assistant Manager

NRS AND ASSOCIATES

Kozhikode

CA Inter

View Details
Company
ARTICLESHIP 14 August 2026
Article Assistant

N J Suresh & Associates

Bengaluru

CA Inter

View Details
Company
ARTICLESHIP 10 August 2026
Article Assistant

Suraj Garg and Associates

New Delhi

CA Inter

View Details