TaxTMI 
TaxTMI 
I am purchasing clothes in meter from market without paying VAT and making it into a part of shirt ( semi marketable) and my turnover is more than 5 lakhs in 9 months. Am I liable to pay Vat?, if yes then how much?
Liable to VAT or not? if yes then how much %
04 Mar 2015 
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VAT liability arises for manufactured garments from purchased fabric; registration and payment of tax are required under the applicable rate.
A vendor who purchases fabric without paying VAT and converts it into semi-marketable shirt components becomes subject to VAT where the vendor's taxable turnover meets the statutory threshold; the vendor should obtain registration and remit VAT on the taxable output at the applicable rate. (AI Summary)
A vendor who purchases fabric without paying VAT and converts it into semi-marketable shirt components becomes subject to VAT where the vendor's taxable turnover meets the statutory threshold; the vendor should obtain registration and remit VAT on the taxable output at the applicable rate. (AI Summary)