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

Should Optional Warranty Charges Be Included in VAT for Dealer Sales of DG Sets? A company sells DG sets to a dealer, who then sells them to end customers. The company offers an optional extended warranty directly to customers who purchase DG sets through the dealer. The query is whether the optional warranty charges should be included in the VAT calculation when the dealer sells the DG sets, even though the charges are levied directly by the company. The reply, agreeing with a previous opinion, does not provide further details on the VAT inclusion issue.