Jayanta Bandyopadhyay (310 Points)
01 February 2022While buying software plus hardware, European vendor is giving 2 years free warranty. Possibly, price is all inclusive. Now as Indian buyer wants extended 3 years, they will charge separately.
This warranty is probably paper based and to be generated after Supply invoice is settled. How to assess customs valuation, pay duty, applicable accounting standard, depreciation due to 3 years economic life, segregation from 2 years free out of 5 years warranty in totality.
Kindly guide.
CS M Pota
(Company Secreatary)
(3186 Points)
Replied 02 February 2022
In my view there will be customs duty on such transaction.Only GST part needs to be taken care of .
CS M Pota
(Company Secreatary)
(3186 Points)
Replied 18 May 2024
Sorry there was typo error in the abpove reply .Please the above reply please be read as under:
In my view there will not be any Customs duty on such transaction only GST parts needs to be taken care of.
CAclubindia
