warranty charges

545 views 2 replies

madhavvan

service

154 Points Joined March 2008

Flow of Transactions

A Manufacturer sells Vehicle to B – who is its sales Company

B- the sales company sells the vehicle to the dealer- C

Dealer- C sells the vehicle to end Customer

A scheme of optional warranty for a consideration is given by the Sales company B to the customer

When customer buys the vehicle from dealer he has option to exercise warranty and he pays the optional warranty amount in favour of B- Sales Company. Dealer-C acts as an agent of B- sales Company.

Issue: Whether the optional warranty amount is to be included in sales price for purpose of charge of VAT and by whom

whether B-Sales company to charge VAT on this optional warranty on the customerwhich is exercised by the customer on purchase of vehicle from the dealer.

Replies (2)

Will you please tell me that input tax credit is available only on goods sold for which tax paid in Himachal Pradesh. What will happen if one has 10% CST Sale, 60% consignment Sale and 30% Export Sale. How much he will able to claim as input tax credit if he has input tax Rs. 1000/- and output tax on CST sale is Rs. 5000/-.