replacement of spare parts is taxable

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subhash sharma (Querist)
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09 January 2010 ONE OF MY CLIENT HE IS A TRADER OF MACHINES.

IN CASE OF REPLACEMENT OF ANY SPARE PARTS WHICH IS AGASINT A PARTICULAR SALE WHICH IS UNDER WARRANTY.

REPLACEMENT OF SPARE PARTS IS TAXABLE OR NOT.

WHAT ABOUT THE OLD PARTS IT IS RETURNED TO THE DEALER BY THE CUSTOMER.

THANKS/REGARDS

SUBHASH SHARMA
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M-9891338895

gautam kumar vaish

gautam kumar vaish (Expert)
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09 January 2010 relating to your question, if your client is giving free replacement then naturally he is not charging any amount and obviously the bill amount is zero, so there is no question of value addition. vat is applicable at the point of value addition only.
regarding the second part, it is not clear whether u r taking it in your stock or not. and at what price u r taking.