Levy of VAT

[madhavvan n]

A company sells DG sets to its dealer B Dealer B therefater sells it to end customer. A Company offers a scheme of optional extended warranty on purchase of DG sets by end customer from dealer. Whether the optional warranty charges are includible for purpose of levy of VAT when the DG sets is sold by dealer even though the optional warranty charges is levied directly by the A company to customer once he exercises the option to buy the dg set with optional warranty from dealer

[Rama Krishana]

I agree with the view of Mr. Gupta to the issue id 1729

AI Summary

Levy of VAT on optional warranty: whether warranty charges are taxable when billed directly by manufacturer to customer. Levy of VAT on optional extended warranty when a manufacturer sells goods through a dealer but invoices the optional warranty directly to the end customer: the question is whether such warranty charges are includible in the VAT value at the point of the dealer's sale of the goods. A forum respondent states agreement with a previously posted view (Mr. Gupta, issue id 1729) without supplying further detail.