Vat
jaydeep
(Querist) 01 September 2012
This query is : Resolved
Hello , I am Jaydeep from Surat, Gujarat. I am doing small business of Embroidery Jobwork.
I passed become and started business of embroidery jobwork in 2011. My purchase of yarn for jobwork is about 5,50,000/- and I have VAT Registration no.
In my business what happen is , My customer send me cloth and I do embroidery work on it and sent it back to respective customer after doing jobwork.
1) But I have one doubt that whether I have to charge vat on my sale bill only because I have purchase yarn of 550000/- which is vatable item.
2)Is vat applicable on embroidery work??
Please reply as early as possible
because I am confused.
Adv.Ashwini Khatri
(Expert) 02 September 2012
Dear Jaydeep U r axclusivly dealing in vat free goods. U r billing in job work only. So u r not liable for collection of vat. But one condition is there, That u have to purchase your raw material from registered dealer only. Otherwise u will be liable for vat on ur purchases. Thank You.
jaydeep
(Querist) 03 September 2012
But sir one of my friend told me that you are dealing in works contract so you have to charge vat on vatable item which you are using.
Now what is this works contract i don't know but.. he told me this thing.
Plese reply sir..
Adv.Ashwini Khatri
(Expert) 03 September 2012
Mr.Jaydeep if u r dealing as a contractor than your awarder will deduct your vat and give u a certificate. After all u r liable for purchase tax because your sale is vat free.
jaydeep
(Querist) 04 September 2012
sorry sir but i want to clarify one more thing that,
"how can i decide that my embroiedery work is works contract or not in gujarat?"
My customer come to me for jobwork and i do it. Is it comes in to contract??
sorry sir for asking question again but please resolve my querry...
