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

Debate Over Taxability of Warranty Parts: Are They Tax-Free or Taxable Under VAT Act? Supreme Court Case Cited. A discussion in a forum addresses whether warranty parts are taxable. An individual working at a Honda dealership in Delhi queries if warranty parts are tax-free. One response suggests that warranty replacements are not considered sales under the VAT Act and thus are not taxable, meaning input cannot be claimed on spare purchases. Another response counters this, citing a Supreme Court decision in a specific case, asserting that warranty parts are indeed taxable.