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Customs duty on warranty from foreign exporter

Others 447 views 2 replies

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)

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.


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