dyeing of cloth job work

[satbir singhwahi]

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 ?

AI Summary

VAT on Cloth Dyeing: Should Be Calculated on Material Consumed Under Punjab VAT Act, Not Invoice Value A discussion on a forum involves a query about VAT obligations for a cloth dyeing job. The cloth dyeing unit is currently paying VAT on 60% of the invoice value, but the department argues that VAT should be based on the material consumed. Two respondents agree with the department's stance, explaining that VAT should indeed be calculated on the material consumed for dyeing, as it is considered Deemed Sales under the Punjab VAT Act.