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Warranty service

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Tsp Swamy

1 Points Posted on 17 December 2020

we need clarification in respect of our role in handling warranty service to our Indian customer who have imported some machinery parts from overseas on their own. Currently, we are have been appointed as the local arm for an overseas company and we have been authorized to take defective parts that were originally imported by the user in India and reexport the parts to our parent company for necessary repair/correction and return. After getting back the parts the same will be returned to Indian customer.

in this transaction, what is our legal position ? and also wants to which rule or regulation is governing this transaction.

regards

Replies (3)

Quick Summary

This discussion seeks clarification on the legal position and governing regulations for a local company acting as an intermediary for warranty services on machinery parts imported by Indian customers. The company receives defective parts from customers, re-exports them for repair by its overseas parent company, and then returns them. The consensus suggests the company acts as an agent under revenue recognition standards, even if not a traditional dealer or agent in other respects.

yasaswi gomes

My grammar is 💯 good I

7306 Points Posted on 17 December 2020

This is not consignment because your not a dealer, risks and rewards not transferred to you as the company is directly importing them without your game play. This way, your not an agent as well.

But according to revenue recognition standard, your an agent at the moment and you will be paid commission for exporting back default goods.

If you don’t get a commission, but receive salary, your still a general agent working for wages.