if a company is providing free of cost material to the dealers in the case of replacement material (within warrantee period)
what should be the treatment of vat
1.) should the company apply vat on full amount of claim invoice(for new product)
or
2.) no requirement of applying vat on claim invoice
| Originally posted by : Ajit kumar Dubey | ||
 |
Yes if any amount is charged extra, then VAT will be attracted. But, if it is given free of cost then on the ground that the cost of warranty is included in the cost of the original product, there will be no incidence of VAT. |
 AGREED |
NO I THINK IF WE WILL DO SO
THERE WILL BE VAT AVOIDANCE
AS REPLACEMENT IS MOSTLY AFTER 6 MONTHS
AND AFTER 6 MONTHS THE VAT EARLY GIVEN IS VANISHED
SO THE COMPANY WOULD HAVE TO PAY VAT AGAIN
I GOT IT SIR
THANKS
SUMIT SOOD
Input Vat or Output vat easily calculated on products. i have already share some imporant lecture on Piterest.
Otherwise, you email me again for more queires.
Gupta Sachdeva & Co. Chartered Accountants
New Delhi
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