Compnay X sells its product subject to 1 year warranty and after expiry of said warranty, some issues comes up with the product. Since warranty period has expired, Company ask its customer to get the product repaired thru its ASCs network (Authorised Service Centres).
Now transactions happens in following order : -
1. Customer approaches ASC - A (New Delhi)
2. ASC accepts the product for repair (Out of warranty) on paid basis.
3. ASC could not repair the product and sends it to ASC-B in (New Delhi)
4. ASC-B, repairs the product (changes the required part & incurs labour) & returns it to ASC-A
5. ASC-A delivered the repaired product to Customer
Now the question is what will be tax implications (VAT & Service Tax) on each of above transaction, please share your views. And what if the ASC-B is situated outside Delhi ?
Read more at: /forum/vat-amp-service-tax-implications-on-sub-contracting--357315.asp
This query was originally posted in student section earlier, but did not receive any response, hence re-posting in this section, request you to please share your views.
CAclubindia
