concerned with Product Warranties. To
give an example of Product Warranties, a company dealing in
computers gives warranty for a period of 36 months from ... period prescribed in the warranty. Therefore, the company should
scrutinize the historical trend of warranty provisions made and the
actual expenses incurred against
Dcit Circle 1 , Tirunelveli vs Rm Kv Fashion Garments Pvt Ltd, ... on 30 April, 2018
covered by the warranty scheme and no purchaser was ready and willing to buy Valve Actuators without warranty. The provision was made by the assessee ... period prescribed in the warranty. Therefore, the company should scrutinize the historical trend of warranty provisions made and the actual expenses incurred against
concerned with product warranties. To give an example of product warranties, a company dealing in computers gives a warranty for a period of 36 months ... period prescribed in the warranty. Therefore, the company should scrutinise the historical trend of warranty provisions made and the actual expenses incurred against
concerned with product warranties. To give an
example of product warranties, a company dealing in computers gives
warranty for a period of 36 months from ... period prescribed in the warranty. Therefore, the company
should scrutinize the historical trend of warranty provisions made and the
actual expenses incurred against
with customers imposed warranty obligation. The company had to replace defective components during the warranty period. The assessee had made provision on account of services ... creation of warranty or provision made, therefore, is premature since the provision in respect of which the warranty provision is created has not yet come
Assessing Officer allowed the Provision for Warranty, Provision for
Liquidated Damage, Provision for Sale Tax and Provision for Excise Duty,
without making any reference ... details relating
to Provision for Warranty, Provision for Liquidated Damage, Provision for
Sale Tax and Provision for Excise Duty were furnished to the Assessing
Officer
upholding disallowance of Rs. 1,76,90,014/- on account of
warranty provision, which was estimated at 10% of the sales.
1.1That ... account of
warranty provisions which was estimated at 10% of sales. It is settled
position that provisions for warranty is a business necessity and such
concerned with product warranties. To give an example of product
warranties, a company dealing in computers gives a warranty for a period of 36 months ... period
prescribed in the warranty. Therefore, the company should scrutinise the historical trend of
warranty provisions made and the actual expenses incurred against
period prescribed in the warranty. Therefore,
the company should scrutinize the historical
trend of warranty provisions made and the
actual expenses incurred against ... this provision after taking into consideration
that warranty period of the goods sold under warranty was existing
provision already provided in a particular is falling
