25 May 2009
WE SOLD 50 PCS EXCISABLE PRODUCT TO OUR DISTRIBUTOR. AFTER 4 MONTHS THEY HAVE REURN 5 PCS FOR REPAIRING WHCIH RECEIVED FROM CUSTOMER AFTER SELLING THAT PRODUCT. IN REPAIRING PROCESS WE USES SOME EXCISABLE PARTS FOR REPAIRNG THAT GOODS (THIS PARTS IS FREE UNDER WARRANTY PERIOD). WHAT ENTRY WILL PASS FOR THIS ?
IS IT ADVERTISEMENTA/C ..........DR. TO FREE SAMPLE TO EXCISE To Education Cess To S&Hs Cess
25 May 2009
It is expenditure on warranty, hence should be booked under the head warranty expenditure. The companies produing the product with warranty attahed to it should provide for warranty expenditure on the product sold during the year on some past experience and actual expenditure should be charged agsinst such provisions. There in no FBT on this expenditure.
CAclubindia
