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Issue ID : 111493
- 0 -

dyeing of cloth job work

Date 12 Feb 2017
Replies2 Answers
Views 1196 Views
Asked By

Sir

cloth dyeing unit is paying vat on 60% of value of invoice.The dept is contesting that material consumed is more so pay vat on material consumed. What is the correct ?

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Replied on Feb 12, 2017
1.

Yes, they are correct in demanding of VAT on consumption of material for dyeing of cloth as it is treated as Deemed Sales. Please check the definition of Sales and Sale Price under Punjab VAT Act read with Rules made thereunder.

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Replied on Feb 13, 2017
2.

I also agree with the contentions of Yagay and Sun.

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