WB VAT on dying and printing of textile

[Asked by Guest]

The company is in the business of dying and printing of textile fabric having unit in west bengal. Fabric is supplied by customer and the company does dying and printing work. The company buys chemicals to be used in dying and printing.

Is this taxable under West Bengal VAT?

is there ant VAT exemption to dying and printing of textile as textile is vat exempt in West Bengal.

[YAGAY and SUN]

Dear Anand Gupta,

Such process may come under works Contract and tax may be applicable accordingly though the VAT is exempted on TTP.

Regards

Team YAGAY & SUN

(Management & Indirect Tax Consultants)

[Madhukar N Hiregange]

The dyeing & printing process is a works contract where some chemicals get transferred and some consumed. VAT can be only on TOP. Whether exempt in WBVAT you may check the local book.

AI Summary

Works contract characterisation can make dyeing and printing of customer textiles subject to VAT despite textile exemption.
Whether dyeing and printing of customer-supplied textile is taxable where the process is typically treated as a works contract; VAT may arise because chemicals used are consumed and some may be transferred to the fabric, so taxability can attach to the value attributable to such transfer despite any exemption on the textile itself, subject to local West Bengal VAT provisions and valuation rules.