Vat applicability for Free Replacement under warranty
sreevani
(Querist) 06 November 2009
This query is : Resolved
Respected sir,
Please let me know whether replacement made under warranty claim be treated as part of sale and whether vat is applicable.send the answer to my emailid
-sreevanisraor@gmail.com
Raj Kumar Makkad
(Expert) 06 November 2009
The replacement is part of already sale made so there is no need to pay VAT on such replacement. This is not a new sale.
Arul Kumar
(Expert) 06 November 2009
If there is an increase in value on such replacement, and the extra price is paid. Then VAT may be applicable on the difference amount.
Raj Kumar Makkad
(Expert) 06 November 2009
Yes. I agree with Arul that if price of commodity to be replaced, increases then extra price shall fetch VAT on that extra amount.
sreevani
(Querist) 07 November 2009
Respected Sir,
Thank u very much, i would also like to know whether there is any recent judgement/any case law in support of, "not considering a replacement as sale".Please send the answer to my email id -sreevanisraor@gmail.com