Ramanuj (Accountant.) (834 Points)
22 March 2013Dear all
I want to know that Vat is applicable on Fabrication charges or not. or service tax.
What is applicable on Fabrication charges there are Ttwo type of work.
1. All material have dealer only have made Stitiching work
2.. Only fabric have dealer but consumable item have own which have made .
3. All Material have own & made shirt to sale to dealer.
What is applicable on above option. please confirm it.
Thanks
Regards
Ramanuj
MJ Krishnamurthy
(ACCT(Retd))
(7197 Points)
Replied 22 March 2013
VAT applicability on the above type of transactions is like this. : (1) It is completely a labour work and only ST is applicable. (2) VAT is partially applicable on the value of material consumed,like thread,buttons,zipand lining material etc and the balance amount is liable for ST. (3) As all materials are also supplied the tottal value is subject to VAT only and no ST is applicable(like manufacturing)..........mjk
Ramanuj
(Accountant.)
(834 Points)
Replied 23 March 2013
Thank you very much sir for reliable Answer.
Have WTC are not applicable on Labour Work ? Where is WTC Applicable ?
Sonu Kumar
(Account Manager)
(665 Points)
Replied 23 March 2013
1. No ........ In this Case only Service Tax is Applicable
2. Yes.... WCT and Service Tax Both Applicable
3 Yes..... Wct and Service Tax Both Applicable
WCT is Applicable Whre Material and Labour Both are Used.
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