we are manufacturer in Tamilnadu, we are giving job work like platting, barling and anodizing to some partnership firm, they made only job work invoice without vat so far, Now as they have registered in sales tax department, So they are making tax invoice for job work. they are levying Vat on 70% of invoice. whether it is correct or not? and can we take input credit that vat?
21 August 2011
Mr Raja, In an invoice you have to see the value of the material consumed.You have to find out from your vendor.It need not be a fixed amount as 70% of the invoice to charge vat,it can be less also.You can take input credit of that VAT. MJK
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