(1) One of my client is in to Bakery Business wherein she is mainly manufacturing cakes & pastries in a kitchen of her own and sale it thru a retail shop under a proprietory firm name.
(2) All sale is with in State of Maharashtra only.
(3) She does not have any Brand Name registered for the same.Only the Shop Name & Boxes under which she sells the product contain Name of Proprietory Firm.
(4) We have obtained Regn.No.under VAT,CST No.& Shops & Establishment for Proprietory Firm.
Now our queries are
(1) Rate of VAT to be charged on sale of Cakes & Pastries.
(2) As informed to us that if cakes/pastries are sold under Registered Brand Name then only VAT @5% is chargeable otherwise rate is NIL.
(3) If rate is NIL can we claim refund of VAT paid on purchases of Raw Material.
Plz.send us your expert comments on the above at the earliest.
CAclubindia
