https://www.taxtmi.com/article/detailed?id=374 Estimated warranty liabilities are deductible where three conditions are met: a present obligation from a past event, probability of outflow to settle it, and a reliable estimate of the amount. When warranty costs are embedded in sale price, accrual and matching principles require provisioning based on historical trends or scientific estimation; provisions must be reassessed annually, increased if estimates rise, and written back if excess amounts are released. en-us Fri, 22 May 2009 00:00:00 +0530 Mon, 03 Jan 2011 13:01:20 +0530 TaxTMI RSS Generator https://www.taxtmi.com/article/detailed?id=374 Estimated warranty liabilities are deductible where three conditions are met: a present obligation from a past event, probability of outflow to settle it, and a reliable estimate of the amount. When warranty costs are embedded in sale price, accrual and matching principles require provisioning based on historical trends or scientific estimation; provisions must be reassessed annually, increased if estimates rise, and written back if excess amounts are released. Articles Income Tax Fri, 22 May 2009 00:00:00 +0530 https://www.taxtmi.com/article/detailed?id=374