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CA Akanksha Maindiratta (Querist)
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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????

B R Ramesh

B R Ramesh (Expert)
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25 June 2011 Hi

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.

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