Vat on warranty parts

[MUKESH DAS]

Dear Sir,

         I am working in a Honda four wheeler dealership in Delhi. My queries is warranty parts is taxbale or tax free sale

[r.rajkumar kumar]

to my knowledge warranty replacement is not a sale as per he vat act. hence warranty replacement is not taxable.and imput cannot be claimed on the puchase of spares.tks.

[ravinder jain]

warranty parts are taxable as per the Supreme court decision in Md Ekram Khan Vs St of UP.

AI Summary

Warranty parts taxability: competing views affect VAT treatment and input tax credit entitlement in dealer transactions under VAT law Whether warranty replacement parts are a taxable sale under VAT law is disputed: one view holds warranty replacements are not a sale and thus not subject to VAT, with no input tax credit claimable on spare purchases; an alternative view cites judicial authority treating warranty parts as taxable supplies, which would subject replacements to VAT and affect input tax treatment.