25 June 2011
sir, our company is purchasing cloth(thaan) of dress material (inter state) and no vat is paid on purchase. now we are cutting that cloth in pieces n selling them to university for students uniform. What rate of vat we should charge from them in our invoice????
since the FABRIC/textile/ any raw meterial which is un stiched there is no VAT.
once the material is stiched as shirt/pant or ready made garment attract at the rate of 5% VAT in local . if interstate sales then CST will be charged.
CAclubindia
