Warranty service

164 views 3 replies

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)

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. 

How was the problem resolved?

@ Hello revenue recognition standard confirms his position as an agent, it’s just that, they have to follow it.

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