We have been importing spare parts and selling them in India. These spare parts are sold on a warranty basis. If any sub-part in those spare part becomes ineffective within the warranty period then those sub-parts are supplied FREE OF COST to the customer.
These sub-parts are purchased locally and then supplied FREE OF COST to the customer. The company also sells these sub-parts in the normal course of business.
Is the company eligible to take Input Tax Credit on these sub-parts which are supplied FREE OF COST?
If yes then please mention the relevant Section, Rules, Case Laws.
CAclubindia
